Average Personal Loan Interest Rates

A good interest rate on a personal loan is 5.99% to 9%. The average APR for a two-year personal loan from a bank is 9.87, according to the Federal Reserve, and the best personal loans have APRs as low as 5.99% for the most creditworthy borrowers. The rates you get will depend heavily on your credit, income, debt and other financial factors.

The best way to get a decent interest rate on a personal loan is to comparison shop and get pre-qualified. WalletHub's free personal loan pre-qualification tool helps you see which lenders have a high chance of approving you, as well as what interest rates you are likely to get if approved. You can then compare your pre-qualified offers to see what a good interest rate on a personal loan is for you personally.

Good Interest Rate on a Personal Loan by Credit Level

1. For excellent credit (A score of 750 or above)

   You may be able to get interest rates as low as 5.99% - 8%. That's where the majority of lenders set their minimums.

2. For good/fair credit (A score of 640 to 749)

   You're unlikely to get the lowest interest rates available, nor should you have to pay lenders' maximums. Look at lenders' credit score requirements; the higher your score is above their minimum, the better your chances of getting a lower rate.

3. For bad credit (A score of 639 or below)

   You probably won't find rates lower than 25% to 36% from a bank or online lender. But personal loans from federal credit unions are capped at 18%.

   If you're planning on consolidating debt, a good interest rate on a personal loan is one that's significantly lower than the rates on your existing debt. But as you compare personal loan interest rates, don't neglect other terms.

   A low interest rate might not be as great as it seems if you also have to pay costly fees to go along with it. For example, many lenders charge “origination fees” of 1% to 6% of the loan amount as an extra cost for opening the loan.

Yes, 10% is a good personal loan interest rate for people with good credit. Applicants with a credit score of 660+ could qualify for a personal loan with a 10.00% APR if they choose the right lender and have enough income to afford the loan.

Best Personal Loans with Rates as Low as 10.00%

Some lenders allow you to pre-qualify to estimate your approval odds and potential rates before you officially apply for a loan. To pre-qualify with multiple lenders at once, check out the free pre-qualification tool on WalletHub.   

Yes, 12.00% is a good personal loan rate for people with good credit. Applicants with a credit score of 660+ could qualify for a personal loan with a 12.00% APR if they choose the right lender and have enough income to afford the loan.

Best Personal Loans with Rates as Low as 12.00%

Some lenders allow you to pre-qualify to estimate your approval odds and potential rates before you officially apply for a loan. To pre-qualify with multiple lenders at once, check out the free pre-qualification tool on WalletHub.   

The major bank with the lowest interest rate for a personal loan is Barclays, at 4.99%. Other notable banks with low personal loan rates include PNC (5.99%) and American Express (6.98%), and some smaller banks across the country may also offer personal loans with similarly low rates.

Banks with the Lowest Interest Rates for Personal Loans

• Barclays: 4.99%+ APR
• PNC: 5.99%+ APR
• American Express: 6.98%+ APR
• Discover: 6.99%+ APR
• Santander Bank: 6.99%+ APR
• Goldman Sachs: 6.99% + APR
• USAA: 7.24% + APR
• Wells Fargo: 7.49% + APR

But just because a lender advertises an interest rate below 6% or 7% on personal loans, as many do, does not mean you are guaranteed that minimum rate. In fact, you'll likely need excellent credit (a score of 750+) to qualify for a lender's lowest rate. Personal loan providers usually display their APRs as a range. For example, Barclays has a minimum APR of 4.99%, but their maximum is 20.99%. The exact rate you receive will depend on such things as your income, credit score and current debts.

Of the largest banks in the country that offer personal loans, those listed above have the lowest interest rates. A few other banks with personal loans have slightly higher minimum rates. For example, Fifth Third Bank's APRs start at 8.24% and TD Bank's APRs start at 8.99%.

If you use WalletHub's free pre-qualification tool, you can see which major lenders are likely to approve you and what rates you might qualify for.

It's also good to note that banks aren't the only place to get personal loans. Credit unions and online lenders are options, too. Each type of lender has its own advantages and disadvantages.

A personal loan interest rate is a percentage of your total loan amount that the lender charges as part of your monthly loan payments to cover the cost of borrowing over the course of a year. Overall, personal loan interest rates from reputable lenders range from around 4% to 36%.

The terms "interest rate" and "APR" are often used interchangeably with personal loans and other financial products. Technically, the main difference between an interest rate and an APR is that an APR includes fees associated with the loan while an interest rate does not.

Your interest rate will ultimately depend on your creditworthiness. In general, the higher your credit score and income are, the lower your interest rate will be.

Average Personal Loan Interest Rates by Credit Score

Note: Average personal loan interest rates are as of Q3 2021.

Some lenders let you estimate your personal loan interest rate before you officially apply. You can check with multiple lenders at once using WalletHub's free pre-qualification tool.

The interest rate on a $40,000 loan from a major lender could be anywhere from 7.99% to 35.99%. It's difficult to pinpoint the exact interest rate that you'll get for a $40,000 loan since lenders take many factors into account when calculating your interest rate, such as your credit score and income. If you have a high credit score and income, you will likely get a low interest rate on a $40,000 loan.

LightStream has the lowest interest rates for a $40,000 loan, starting at $5,000. LightStream isn't your only option, though. Below you can see the best $40,000 personal loans and the interest rates associated with them.

Best $40,000 Personal Loans

Some lenders will let you pre-qualify to see your potential rates before you apply. To pre-qualify with multiple lenders at once, check out the free pre-qualification tool on WalletHub.

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).

The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 24.83% and 60 monthly payments of $26.36 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,817 including a $594 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

A good interest rate for an unsecured personal loan is between 7.99% and 9%. The best unsecured personal loans have interest rates as low as 7.99%, and the average interest rate for a 24-month loan from a bank is around 9%, according to the Federal Reserve.

For your convenience, below you can see some good interest rates for an unsecured personal loan by credit level.

Good Interest Rates for Unsecured Personal Loans by Credit Level

Note: “Good” interest rates listed above are below the average interest rate per credit level.

To start comparing offers, check out WalletHub's picks for the best unsecured personal loans. Additionally, some lenders let you pre-qualify before you officially apply, which lets you estimate your potential rates. You can pre-qualify with multiple lenders at once using our free pre-qualification tool.  

The best personal loan interest rates vary a lot over time and depend on several factors, including the applicant's credit score, income, monthly housing payment and existing debt obligations. The loan term and amount have an impact, too, as does the overall economic climate.

The average APR for a 24-month personal loan was 10.07% as of December 2019, according to the most recent data available from the Federal Reserve Bank of St. Louis. By definition, the best personal loan rates have to be below average, so 10% is a good benchmark to beat. That average has gone up a bit in recent years, after bottoming at 9.45% in Nov. 2016. But personal loans rates are still 50% lower than they were in the 1980s.

Below, you can see some average personal loan interest rates broken down by credit score. You can check your latest credit score for free on WalletHub to find out exactly where you stand.

Average Personal Loan Rates by Credit Score

Source: LendingTree, 2019

As you can see, the better your credit score is, the more you can expect to borrow with a personal loan, and the lower your finance charges should be. So the keys to saving money are to get your credit in the best shape possible and compare offers in order to identify the best terms you can qualify for.

Your free WalletHub account provides customized credit improvement advice, along with personalized recommendations for offers likely to save you money.

The interest rate on a $35,000 loan from a major lender could be anywhere from 7.99% to 35.99%. It's difficult to pinpoint the exact interest rate that you'll get for a $35,000 loan since lenders take many factors into account when calculating your interest rate, such as your credit score and income. If you have a high credit score and income, you will likely get a low interest rate on a $35,000 loan.

LightStream has the lowest interest rates for a $35,000 loan, starting at $5,000. LightStream isn't your only option, though. Below you can see the best $35,000 personal loans and the interest rates associated with them.

Best $35,000 Personal Loans

Some lenders will let you pre-qualify to see your potential rates before you apply. To pre-qualify with multiple lenders at once, check out the free pre-qualification tool on WalletHub.

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).

The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 24.83% and 60 monthly payments of $26.36 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,817 including a $594 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

A good APR for a personal loan is below 12% if you have excellent credit. The further from excellent your credit score is, the closer to the lender's maximum APR your rate will be and the more interest you'll have to pay over time. Below you can see what a good APR is for each credit level.

Good APR for a Personal Loan by Credit Level

Note: A “good” APR is lower than the average APR per credit level.

The best way to see if you can get a good APR for a personal loan is to pre-qualify before you officially apply. You can then narrow down your search to the lenders that offer you the lowest rates. To estimate your potential rates from multiple lenders, check out WalletHub's free pre-qualification tool.