Average personal loan rates: October 25, 2022

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Over the past week, personal loan rates have fallen for borrowers with excellent, good and bad credit scores – a good sign for those looking to get a low rate. You can take out a personal loan for a variety of purposes, such as covering the cost of a medical bill or financing a home improvement project.

However, personal loan rates could remain relatively high given the current interest rate climate. The Federal Reserve has raised the federal funds rate five times in 2022, which has a direct impact on the rates offered by various lenders on their personal loans.

Average Personal Loan Rates

We’ve compiled a database of 28 personal loan products and averaged their rates so you know the current landscape. The higher your credit score, the more likely you are to qualify for a better rate.

The lowest rate of the companies we track comes from Upstart, which has a minimum APR of 5.60%. The highest rate comes from NetCredit Personal Loans, which has a maximum APR of 99.99%.

The actual rate you can get is based on your creditworthiness and other aspects of your financial situation. Check your rates with the lenders you are interested in to see what you qualify for.

Average personal loan rates by credit score

These rates are based on data from 170 borrowers who applied for loans and received rates.

Average loan amount and term length by credit score

These loan amounts and terms are based on data from 170 borrowers who applied for loans and received rates.

Percentage of Borrowers by Lending Purpose

These lending goals are based on data from approximately 177 borrowers who applied for loans and received rates. A borrower used the loan funds to pay for his wedding this week.

Frequently Asked Questions

Different lenders require different minimum credit scores for borrowers to qualify for a personal loan. Some lenders have no minimums, while others only offer low rates to borrowers with excellent credit histories.

Most lenders allow you to use a personal loan for almost any purpose you can think of, although it depends on the company. Some common uses include:

Not all available reasons are listed here, and you should contact your individual lender to ask what choices they offer.

Personal loans are not suitable for all situations or for all people. They can sometimes be difficult to qualify, with strict credit score requirements. Personal loans can also carry high interest rates, which could mean there are better options.

For larger purchases that don’t fit within a credit limit, a personal loan might be the right option. It’s worth calculating the interest you’ll pay and carefully considering options like a secured loan to lower the interest rate.

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