Average Personal Loan Rates: September 15, 2022

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Personal loan rates were hovering around 19.59% overall for the week of September 12, down slightly from a week earlier. Personal loans can be used for a variety of purposes, like covering the cost of a medical bill or financing a home improvement project.

Compare today’s personal loan rates

Average personal loan rates

We’ve compiled a database of 28 personal loan products and averaged their current rates so you see the current personal loans climate. The better your credit score, the more likely you’ll qualify for a lower rate.  

The average overall rate is down 31 basis points this week, meaning now could be a good time to apply for a personal loan. 

The lowest rate of the companies we track is LightStream Lightstream LightStream Personal Loan, which has a minimum APR of 4.99%. The highest rate of the companies we track is NetCredit, which has a maximum APR of 99.99%.

The actual rate available to you depends on your creditworthiness and other aspects of your financial situation. Check your rates with any 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 about 194 borrowers who applied for loans and received rates.

Average loan amount and term length by credit score

These loan amounts and term lengths are based on data from about 194 borrowers who applied for loans and received rates.

Percentage of borrowers by loan purpose

These loan purposes are based on data from about 174 borrowers who applied for loans and received rates.

 

Insider’s Featured Personal Loan Companies

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APR

3.99% to 19.99% with AutoPay (Rates as of 09/01/2022. Rates vary by loan purpose.)

Fees

4.5/5

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Fees

4.25/5

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APR

7.99% – 23.43% (with all discounts)

Fees

4.25/5

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Frequently asked questions

To pick the best personal loan for you, consider the factors that are most important to you. Many borrowers zero in the lowest interest rate, but also look at any fees, the minimum credit score needed, and the accessibility of the lender’s customer service.

Also look at the different types of lenders you may borrow from. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You’ll also want to make sure you’re able to select a term length that works for you and that your loan’s purpose is allowed by the lender you choose.

Many lenders don’t disclose a minimum credit score, but they may be able to give you a general sense of your approval chances when you offer them your financial information. If your score is too low to qualify, take steps to improve it by reviewing your credit report and lowering your credit utilization ratio (the percentage of your credit limit you’re currently using)

To improve your credit score:

  • Request and review a copy of your credit report. Look for any mistakes on your report that may be hurting your score. If you find any, reach out to the credit bureau to talk about correcting the errors.
  • Maintain low credit-card balances. Having a credit-utilization ratio — the percentage of your total credit you’re using — of 30% or less will prove to lenders that you can aptly handle your credit.
  • Create a system for paying bills on time. Your payment history makes up a significant percentage of your credit score, and lenders prefer to see consistent and reliable past payments. Design calendar reminders or automatic payments so you don’t fall behind.

If you’re a member of a credit union or have one nearby to join, it could be worth checking on rates for a personal loan there. Smaller lenders like credit unions often can offer much lower interest rates than bigger banks and lenders. They also tend to be more flexible about credit requirements. It might be worth checking on their rates and terms as part of your research.