During the week ending Jan. 11, 2026:
- Average personal loan interest rates on 3-year loans were at 13.72% APR, up 0.81 percentage points from 12.91% last week and down sharply from 15.26% this time last year.
- Average personal loan interest rates on 5-year loans were at 18.10% APR, up 0.42 percentage points from last week's average of 17.68% and down significantly from 20.71% this time last year.
Read More: APR vs Interest Rate: Understanding the Differences
Current personal loan interest rates
Personal loan interest rate trends by year
Despite some periods of week-to-week volatility, average rates for 3-year and 5-year loans have seen a general downward trend since May 2025. The chart below shows average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender.
Tip
Personal loans are a popular way to consolidate and pay off credit cards and other debt. Prequalify to gauge whether you're likely to get approved for a personal loan and the rates you might qualify for.
Current personal loan interest rates by credit score
Personal loan interest rates tend to range between 6.49% APR and 35.99% APR, but the rate you qualify for depends on factors including your credit score and the length of the repayment term. For example, the data chart below shows that borrowers with excellent credit scores are more likely than others to qualify for APRs in the 10% to 16% range on 3-year loans and 5-year loans. On the other hand, borrowers with fair credit may expect much higher APRs.
Here are the current ranges of prequalified APRs for borrowers in different credit score categories on the Credible marketplace:
Borrowers with bad credit tend to receive the highest APRs of any credit score category, with rates typically falling in the 32% to 36% range.
Keep in mind that all lenders use different methods to evaluate borrowers, which is why it's important to prequalify with several.
Personal loan interest rates by loan purpose
What you use a personal loan for also affects the interest rate. See how average interest rates for each top loan purpose below vary. Data is sourced from the Credible personal loan marketplace and based on closed loans data from January 2025 through December 2025.
Disclosure: Based on personal loans closed from January 2025 through December 2025. Source: Credible.
Where are personal loan interest rates headed?
A downward trend in rates looked likely at the beginning of the new year, but volatility has made a comeback. Average rates on 3-year and 5-year loans have increased week over week, approaching where they stood at this time last month.
The Federal Reserve cut the federal funds rate three times in the final months of 2025, but rates have continued to fluctuate without showing a significant decline since then. Overall, though, average rates on 3-year and 5-year loans have fallen by about 2 to 3 percentage points since this time last year.
When it announced the final rate reduction of 2025 last month, the Fed also released new economic projections. Those projections indicated that the Fed plans only one cut in the federal funds rate in 2026, although some forecasters think additional cuts are likely. The Fed meets later this month to decide whether to keep the rate steady or make another cut.
Meanwhile, Chairman Jerome Powell continues to assert the Fed’s independence from political influence. The Department of Justice has launched a criminal investigation into his testimony to Congress about the cost of renovating the Fed’s headquarters, which some see as a tactic to pressure him to resign and the Fed to lower rates.
The target range for the federal funds rate is at 3.50% to 3.75%, down from a high of 5.25% to 5.50% in 2024. However, personal loan rates may not continue to decline if lenders tighten underwriting standards.
Read More: The Fed's Effect on Personal Loan Rates Explained
See other personal loan interest rates:
- Credit card consolidation loan interest rates
- Debt consolidation loan interest rates
- Home improvement loan interest rates
- Bad credit personal loan interest rates
What are personal loans used for?
The most common use for a personal loan is debt consolidation, according to Credible marketplace data. Debt consolidation, including credit card refinancing, accounted for more than $58 million of disbursed loans in December — more than 65% of people approved for a loan via the Credible marketplace used it for either debt consolidation or credit card refinancing. The average disbursed loan amounts for debt consolidation and credit card refinancing were $23,138 and $20,852, respectively.
Home improvement was the next most common loan purpose, with more than $6.6 million disbursed in December. The average amount for home improvement loans was $20,417.
About Credible
Credible is a multi-lender marketplace that empowers consumers to compare prequalified rates across dozens of lenders based on their credit score, income, and other financial factors. Credible's integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options ― without putting their personal information at risk or affecting their credit score.
Credible also provides no-cost credit monitoring tools that help you manage debt and check your credit score for free.
The Credible marketplace provides an unrivaled customer experience, as reflected by more than 7,859 5-star Trustpilot reviews and a TrustScore of 4.8/5.
Where we get our data
Credible is a personal loans marketplace that partners directly with lenders to offer loans for a wide range of credit profiles and loan purposes. Because of the relationships with our bank and fintech partners, we have access to the most current rates that real borrowers are being approved for, along with average rates by credit score and loan purpose, how easy or hard it is to get approved, and more. The data we use is primary source data, updated weekly, and does not include any personally identifiable information about borrowers.
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