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The average total interest rate on personal loans this week is 20.11%, which has increased by 10 basis points since the beginning of December.
The average low is 10.08%, which has steadily increased over the past four weeks from 9.98%. Personal loan interest rates have risen this year as the Federal Reserve raised the federal funds rate in an effort to slow inflation, which is driving up consumer borrowing costs across the system.
You can get a personal loan for various reasons. Many borrowers take them out for debt consolidation. Other popular uses for cash include financing a home improvement project, paying a medical bill, and general household expenses.
Personal loan companies featured by Insider
5.99% to 23.99% with AutoPay (Rates as of 12/26/2022. Rates vary by loan purpose).
7.99% – 23.43% (with all discounts)
Average personal loan interest rates
We compiled a database of 28 individual loan products and averaged their interest rates so you know the current landscape. You’ll have a better chance of getting a better interest rate with a higher credit score. Prices are largely unchanged from last week and are generally high.
The lowest rates among the companies we tracked are tied with Lightstream, American Express, and Reach, which have minimum APRs of 5.99%. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 99.99%.
The rates shown above are not locked. The rate you will receive depends on your creditworthiness and other aspects of your financial situation. You can find the rates you’ll qualify for by contacting each lender you’re interested in.
Average personal loan interest rates by credit score
These rates are based on data from 114 borrowers who applied for loans and received interest rates.
Average loan amount and term by credit score
These loan amounts and terms are based on data from 114 borrowers who applied for loans and received interest rates.
Percentage of borrowers by loan purpose
These loan goals are based on data from 126 borrowers who applied for loans and received interest rates. One borrower used the loan funds to pay for a child’s expenses this week.
Frequently asked questions
Many lenders don’t disclose a minimum credit score, but they can give you a general idea of your chances of approval when you provide them with your financial information. If your score is too low to qualify, take steps to improve it by reviewing your credit report and lowering your credit utilization ratio (the percentage of your credit limit that you’re currently using).
Yes, online loans with a reputable lender are completely safe to take. Read company reviews online, search for more information about the company, and ignore offers that sound too good to be true. Look for personal loans backed by a member FDIC bank or NCUA accredited credit union.
You can guard against potential scams by paying attention to these warning signs:
- The lender doesn’t ask about your payment history or credit score.
- Lender’s website is not secured.
- Lender guarantees approval.
- The lender is not transparent about fees.
- The lender forces you to take a loan immediately.
This depends entirely on how much you want to borrow, what APR you get from your lender, and how long it takes you to pay off the loan. The higher the loan amount and the APR, the more expensive the loan will be. With a longer term, you’ll spread your payments over a longer period of time, so your monthly payments will be smaller, but you’ll pay more in the long run.