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Personal loan interest rates on most unsecured loans range between 4.99% and 36%. Comparing rates, monthly payments, and repayment terms from different lenders can help you find a loan that works for your budget.
You can get personal loans from several different sources, including online lenders, banks, and credit unions. Here are your options when it comes to finding a personal loan:
- Average personal loan interest rates
- Personal loan lenders with some of the lowest rates
- Interest rates based on credit score
- How to get the lowest personal loan interest rates
- Common types of personal loans
Average personal loan interest rates
Interest rates for personal loans from online lenders
While you can find low-interest loans from banks and credit unions, online lenders often offer the most competitive rates. Plus, you can typically get your money quickly; some lenders will disburse your funds in as little as one business day.
The personal loan companies in the tables below compete for your business through Credible. You can request rates from all of these partner lenders by filling out just one form (instead of one form for each) and without affecting your credit score.
|Lender||Fixed rates||Loan amounts|
|9.95% - 35.99% APR||$2,000 to $35,000**|
|7.29% - 17.99% APR||$10,000 to $50,000|
|4.99% - 35.99% APR||$5,000 to $50,000|
|5.99% - 24.99% APR||$2,500 to $35,000|
|7.99% - 29.99% APR||$7,500 to $50,000|
|5.99% - 24.99% APR||$5,000 to $40,000|
|7.04% - 35.89% APR||$1,000 to $40,000|
|7.99% - 35.99% APR||$2,000 to $36,500|
|3.99% - 19.99% APR||$5,000 to $100,000|
|6.99% - 19.99% APR1||$3,500 to $40,0002|
|18.0% - 35.99% APR||$1,500 to $20,000|
|5.49% - 17.99% APR||$600 to $50,000
(depending on loan term)
|7.95% - 35.99% APR||$2,000 to $40,000|
|6.99% - 22.28% APR10||$5,000 to $100,000|
|8.93% - 35.93% APR7||$1,000 to $20,000|
|5.94% - 35.97% APR||$1,000 to $50,000|
|4.37% - 35.99% APR4||$1,000 to $50,0005|
Interest rates for personal loans from banks
If you have a checking or savings account with a brick-and-mortar bank, it’s a good idea to check with your local branch to see if it offers personal loans. Existing customers can often qualify for a loan with competitive interest rates because they already have a relationship with the bank. Interest rates from banks typically range from 5.74% to 24.99%.
Here are some personal loan amounts from bank lenders. Note that these banks aren’t Credible partners, so you won’t be able to easily compare your rates with them using our platform.
|Citizens Bank||$5,000 to $15,000|
|CitiBank||$2,000 to $30,000|
|Fifth Third Bank||$2,000 to $50,000|
|PNC Bank||$1,000 to $35,000|
|TD Bank||$2,000 to $50,000|
|Wells Fargo||$3,000 to $100,000|
|Lender amounts are accurate as of April 2022|
Interest rates for personal loans from credit unions
Credit unions are not-for-profit organizations. Because their focus isn’t on big returns, they’re able to pass on the savings to their members in the form of low-interest loans. Interest rates from credit unions typically range from 4.99% to 18.50%. But you’ll likely need to join the credit union to be eligible for a loan.
Here are some credit union loan amounts. Note that PenFed is a Credible partner, while the others are not.
|Alliant||$1,000 to $50,000|
|Fairwinds Credit Union||$500 and up|
|PenFed Credit Union||$1,000 to $100,000|
|USAA||$2,500 to $100,000|
|Lender amounts are accurate as of April 2022|
Personal loan lenders with some of the lowest rates
Taking out a personal loan can be a smart way to save money on a major purchase or to accelerate your debt repayment. By working with a reputable lender, you can save yourself time and frustration. We’ve researched interest rates and loan terms to find the best lenders out there. Here are three Credible partner personal loan lenders that offer the lowest interest rates as of April 2022.
Fixed rates from 5.99% – 24.99% APR
Happy Money is an online lender that offers some unique benefits. Not only can you borrow up to $40,000, but Happy Money also offers flexible repayment options. If you lose your job, they’ll work with you on payments so you can get back on your feet.
Check out our Happy Money review for more info.
Fixed rates from 3.49% – 19.99% APR
If you have good credit, LightStream offers some of the best rates of any online lender. You can borrow up to $100,000 to fund major expenses like home renovations, car repairs, or debt consolidation. Plus, you can get your money as soon as the same business day.
Check out our LightStream review for more info.
Fixed rates from 6.99% – 19.99% APR1
With Marcus, you can borrow up to $40,000 and have up to six years to pay it off. There are no fees and you can choose a monthly payment option that works for your budget.
Check out our Marcus review for more info.
Interest rates based on credit score
The rate a lender offers you is dependent on many different factors, including:
- Your credit score
- Your income
- The amount you borrow
- The selected repayment term
In general, an excellent credit score will help you get the lowest available rate. By contrast, if you have fair or even poor credit, you’ll likely end up with a higher rate.
A high rate can add significantly to the cost of your loan. Avant, for example, has personal loans with rates ranging from 9.95% to 35.99%. Say you take out a $10,000 loan with a five-year term. You’ll pay about $2,733 in interest with a 9.95% rate. The total interest charge jumps to $11,676 with a 35.99% interest rate.
Tip: One way around paying a high rate is to apply with a cosigner who has good or excellent credit. Your cosigner will be responsible for repaying the loan if you aren’t able to make your payments, so you might get approved for a lower interest rate on the strength of their higher credit score.
Knowing where your credit stands will help you decide whether to apply on your own or with a cosigner. The most commonly used credit scores are Fair Isaac’s FICO scores, which range from 300 to 850. Here’s a look at credit score ranges and the category each falls into.
|Credit score ranges||Credit rating|
|640 to 699||Fair|
|700 to 749||Good|
|750 and up||Excellent|
Learn more: How to Improve Your Credit Score in Just 5 Steps
How to get the lowest personal loan interest rates
Borrowing with a cosigner who has strong credit is one way to get a good rate, but it’s not the only one. Making yourself as low-risk of a borrower as possible is key to qualifying for the best possible rate. Here’s how:
- Check your credit report before you apply and look for opportunities to improve your credit score. Paying down debt, paying off forgotten collection accounts, and correcting any errors you find could boost your credit score enough to reduce your rate.
- Select as short a loan term as possible. Longer terms carry higher risk of default, which is why they typically come with higher interest rates.
- Borrow only the minimum amount you need. The smaller the loan amount, the less risky it is to lenders and the sooner you’ll be able to repay the loan.
- Maximize your income. Taking a temporary side gig will boost your income and reduce your debt-to-income ratio, which could qualify you for a better interest rate.
- Borrow from a bank or credit union where you have existing accounts. Some financial institutions offer relationship discounts on interest rates if you’re already a customer.
Before submitting your application for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the best rates. But don’t worry: This doesn’t have to be a time-consuming process.
Credible makes it easy. Just enter how much you want to borrow and you’ll be able to compare multiple lenders and their rates so you can choose the one that makes the most sense for you.
Common types of personal loans
Personal loans come in all shapes and sizes. Although some lenders prohibit borrowers from using personal loan funds for college expenses, you can use the money for nearly anything you want.
The nature of personal loans makes them especially suitable for large, one-time expenses. Here are some ways you might use one.
If you’re carrying high-interest debt, like a payday loan or auto loan, a debt consolidation loan can pay off that debt and save you money on interest. Just be sure the new loan term and any origination fees the lender charges won’t cancel out your interest savings.
Learn more: How Does Debt Consolidation Work?
Credit card consolidation
High-interest credit card debt can cost a fortune in interest, especially if you’re only making minimum payments. But you can use a credit card consolidation loan to pay off the cards. This will leave you with just one monthly payment to keep track of, and ideally a lower interest rate than you were paying on your credit cards.
Home improvement projects can protect the integrity of your home and add to its value. But the different financing options can be confusing. Home equity loans and home equity lines of credit might cover the cost, but the application process can be complicated, you need ample equity, and you could lose your home if you default on the loan.
A home improvement loan, which is an unsecured personal loan, won’t require equity or put your home at risk — and you may be able to qualify even with a shaky credit history.
An emergency, like a sudden illness or a major household repair, can leave you scrambling for cash. Rather than maxing out your credit cards or draining your savings, consider using an emergency loan to cover the costs. If you’re approved, some lenders can deposit the funds directly into your bank account as soon as the same or next business day.
Tip: It’s a good idea to build an emergency fund and save enough cash in it to cover several months worth of living expenses. That way when an unexpected expense arises, you can draw on your emergency fund to cover the cost.
The average credit card interest rate was 16.44% at the end of 2021, according to Federal Reserve data. That makes credit cards an expensive way to finance a major purchase. On the other hand, the average interest rate for a 24-month personal loan at the end of 2021 was 9.09%, according to the Federal Reserve. A personal loan has the added benefit of covering the entire amount you need with a single loan with a predetermined payoff date.
Credible partners with top personal loan lenders to help you secure the loan that best meets your needs. Whether you need several hundred dollars or $100,000, our platform makes it easy to compare lenders and loans so you can find the most competitive rate. There’s no fee to use Credible, and you can get prequalified in about two minutes.
Kat Tretina contributed to the reporting for this article.