Insider’s experts select the best products and services to help you make wise decisions with your money (here is how). In some cases we receive a commission from our Our partners, but our opinion is our own. The conditions apply to the offers listed on this page.
Borrowers with bad credit have seen better interest rates this week. However, if you have a good or fair score, you may get a lower rating.
Compare today’s personal loan rates
While some personal loan rates have fallen over the past week, they are trending higher overall. The Federal Reserve hiked the federal funds rate six times in 2022 to try to tame rising inflation. These higher interest rates are affecting the economy, leading to higher borrowing costs for everything from mortgages and credit cards to auto and personal loans.
You can get a personal loan for many reasons. Recently, most borrowers have used them for debt consolidation. Other popular uses for the money are Financing a home improvement projectPay a medical bill and cover general household expenses.
Average personal loan rates
We have compiled a database of 28 personal loan products and their rates averaged so you know the current landscape. The higher your credit score, the more likely you are to qualify for a better interest rate. Prices are unchanged from last week.
The actual interest rate you receive depends on your credit rating and other aspects of your financial situation. Check your interest rates with any lenders you’re interested in to see what you’re eligible for.
Average personal loan rates by credit rating
These rates are based on data from 150 borrowers who applied for loans and received interest.
Average Loan Amount and Term by Credit Rating
These loan amounts and tenors are based on data from 150 borrowers who applied for loans and received interest.
Percentage of Borrowers by Loan Purpose
These credit purposes are based on data from 157 borrowers who applied for credit and received interest. A borrower this week used loan funds to pay for baby expenses.
Insider recommended personal loan companies
5.99% to 21.49% with AutoPay (Rates as of 10/25/2022. Rates vary by loan purpose.)
7.99% – 23.43% (with all discounts)
frequently asked Questions
Yes, your credit rating has a significant impact on your rate. In general, the better your credit score, the better the interest rate you will get.
Different lenders require different minimum loan values for borrowers to qualify for a personal loan. Some lenders have no minimums at all, while others only offer low interest rates to borrowers with excellent credit histories.
You can use a personal loan for almost any purpose you can think of, although it depends on the lender. Some common uses are:
Every available reason is not listed here and you should contact your individual lender to ask what options they offer.
Personal loans are not suitable for every situation or for every person. It can sometimes be difficult to qualify due to strict credit requirements. Personal loans can also come with high interest rates, which could mean there are better options.
For larger purchases that don’t fit within a credit limit, a personal loan might be the right option. It pays to calculate the interest you will have to pay and carefully consider options like a secured loan to lower the interest rate.