Personal Loan Statistics

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 benefits of obtaining a personal loan include being able to use the money for nearly anything, building credit if you pay the bills on time, and not having to put down any collateral. Personal loans also can have low interest rates, online approval and quick funding.

Benefits of Obtaining a Personal Loan

• Use them for many things. You can use a personal loan for almost anything. Some popular ways to use a personal loan include paying...

To apply for a personal loan, first get pre-qualified and choose your method of applying (online, by phone, in person or by mail), then fill out the application with your personal and financial information. Finally, double check that the information is complete and accurate, submit the application and wait for approval.

How to Apply for a Personal Loan

1. Get pre-qualified if possible. Checking to see if you're pre-qualified for a personal loan...

A personal loan is typically just called a "personal loan," though you may also hear it referred to as a "signature loan" or a "bank loan." The phrase "personal loan" is probably the most accurate because it shows the fact that you can use the loan for nearly any purpose. The phrase "signature loan" refers to the fact that you need no collateral other than a signature, but this only represents unsecured personal loans. There...

You can get a personal loan for 3 months from friends or family members. If you're interested in a personal loan from a traditional lender, you could always take out a normal personal loan with a longer duration and pay it back ahead of schedule. Banks, credit unions, and online lenders typically offer personal loans with a minimum repayment period of 6 - 24 months.

Alternatively, if you have a qualifying Bank of America...

A personal loan is an installment loan that can offer up to $100,000 in funding with a fixed APR around 4% to 36% and a repayment period of 12 - 84 months. You generally need a credit score of 580+ to get a personal loan from a reputable lender. Most personal loans don't require collateral, which is why they're sometimes called signature loans, but some secured personal loans are available.

Key Facts About Personal Loans

• Loan Type: Installment
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The most common reasons for taking out a personal loan include medical bills, home improvements and debt consolidation. However, personal loans can be used for almost any purpose, making them one of the most versatile and common loan types.

The best reasons to get a personal loan are to pay off unavoidable, urgent expenses (e.g. hospital bills) because they can strike at any time and put a financial strain on you. Another good reason is to make investments that will...

A good interest rate for an unsecured personal loan is between 6.49% and 9%. The best unsecured personal loans have interest rates as low as 6.49%, 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

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% APR if they choose the right lender and have enough income to afford the loan.

Best Personal Loans with Rates as Low as 10%

A typical interest rate for a personal loan is between 4% and 36%. The exact interest rate you get for a personal loan will depend on a number of factors, such as your income, existing debt, employment status and credit score, among others. Below you can see the average personal loan interest rate for each credit rating based on the latest WalletHub data.

Average Personal Loan Interest Rate by Credit Rating

• Excellent: 12.14%
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