Personal loans are becoming more popular among people looking to consolidate debt and find lower interest rates than credit cards. According to a Bankrate study, the average personal loan interest rate is 12.18 percent as of April 10, 2024. However, the rate you receive could be higher or lower, depending on your unique financial circ*mstances.
Personal loan rates vary based on creditworthiness, the lender and the borrower’s financial stability.
Average personal loan interest rates by credit score
People with good or excellent credit may find average loan interest rates in the low double digits. Those with averageor poor credit will pay a considerably higher average rate. This chart outlines the average interest borrowers pay by credit score, based on Bankrate research.
| Credit score | Average loan interest rate |
| 720–850 | 10.73%-12.50% |
| 690–719 | 13.50%-15.50% |
| 630–689 | 17.80%-19.90% |
| 300–629 | 28.50%-32.00% |
However, some borrowers will get much lower interest rates because these are averages.
Average loan rates by lender type
Local banks and credit unions with brick-and-mortar stores have a reputation for competitive personal loan products. However, online lenders often offer loans with lower starting interest rates for borrowers with excellent credit. If you want to find an affordable loan product, compare your bank or credit union’s offerings with any online lenders you may be familiar with.
Annual percentage rates (APRs) below are accurate as of March 28, 2024. Check with the lender for any updated details.
Average personal loan rates by online lender
| Online lender | Loan interest rates |
| Achieve | 8.99%-35.99% |
| Avant | 9.95%-35.99% |
| Best Egg | 8.99%-35.99% |
| Earnest | Varies by lender |
| Happy Money | 11.72%-17.99% |
| LendingClub | 8.98%-35.99% |
| LendingPoint | 7.99%-35.99% |
| LightStream | 7.49%-25.49% with Autopay |
| OneMain Financial | 18.00%-35.99% |
| Prosper | 8.99%-35.99% |
| SoFi | 8.99%-29.49% with Autopay |
| Upgrade | 8.49%-35.99% with Autopay |
| Upstart | 7.80%-35.99% |
Average personal loan rates by banks
| Bank | Loan interest rates |
| Citi | 10.49%-19.49% APR |
| Santander Bank | 7.99%-24.99% with ePay |
| U.S. Bank | 8.74%-24.99% with autopay |
| Wells Fargo | 7.49%-23.24% with autopay |
Average personal loan rates by credit union
| Credit union | Loan interest rates |
| PenFed Credit Union | 7.99%-17.99% APR |
| Members 1st Federal Credit Union | Starting at 12.39% |
| Navy Federal Credit Union | 8.99%-18.00% |
| USAA | 10.19%-18.51% |
Other factors that affect your personal loan rate
While your credit score plays a significant role in the average personal loan interest rate you can qualify for, lenders consider other details to gauge your creditworthiness. These include:
- Your income is used to determine how much you can borrow.
- Your debt-to-incomeratio helpslenders determine how much debt you already have compared to your income.
- Your employment status helps lenders feel confident about your ability to repay your loan.
- Your loan term can impact your rate: short-term personal loans tend to have higher interest rates than long-term personal loans.
Some lenders set minimum standards for their loans, such as a minimum income amount or a minimum credit score. You may also be unable to get approved for a personal loan if you have a recent bankruptcy on your credit report or an open collections case. Before you apply for a personal loan, it can help to look over your lender’s FAQ pages to see if you will be able to qualify.
The documentationyou can expect to provide when you apply for a personal loan includes:
- Photo identification.
- Employer and income verification, like pay stubs and bank statements.
- Proof of address.
What is considered a good interest rate on a personal loan?
A good interest rate on a personal loan can be different for everyone. Generally speaking, a good rate is below the average personal loan rate.
For you, a good interest rate is the best loan rate you can hope to qualify for based on your credit score, income and other factors. Look for lenders that offer prequalification, which lets you preview your interest rates and eligibility before formally applying. You can prequalify with multiple lenders and choose the one offering the best rate.
The bottom line
Average personal loan interest rates can vary depending on your credit score and other factors, but you do have some control. Make sure to keep your credit score in the best shape possible and work on paying off debt to lower your debt-to-income ratio. The best ways to get a personal loan that suits your budget and goals are taking care of your financial health and shopping around to compare loan interest rates.
