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If you have bad credit and are looking for a personal loan this week, you will face average rates that are almost double what they were two weeks ago. Borrowers with fair credit ratings also saw rates rise.
These increases come as all kinds of borrowing costs rise. The Federal Reserve raised the federal funds rate five times in 2022 in an attempt to rein in soaring inflation. These higher rates ripple through the economy, driving higher interest rates on everything from mortgages and credit cards to auto and personal loans.
You can get a personal loan for many reasons. Most borrowers in recent months have used them for debt consolidation. Other common uses for the money include financing a home improvement project, paying a medical bill, and covering general household expenses.
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 157 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 157 borrowers who applied for loans and received rates.
Percentage of Borrowers by Lending Purpose
These lending goals are based on data from approximately 161 borrowers who applied for loans and received rates. A borrower used loan funds to pay for baby fees this week.
Insider’s Featured Personal Loan Companies
5.99% to 21.49% with AutoPay (Rates as of 10/25/2022. Rates vary by loan purpose.)
7.99% – 23.43% (with all discounts)
Frequently Asked Questions
Yes, your credit score has a direct impact on your rate. As a general rule, the higher your credit rating, the better the rate you will get.
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. It 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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