Personal loans are becoming increasingly popular among people looking to consolidate their debts and find lower interest rates than credit cards. According to a survey by Bankrate, the average interest rate on personal loans as of April 24, 2024 is 12.22 percent. However, the rate you receive may be higher or lower depending on your unique financial circumstances.
Personal loan rates vary based on the borrower’s creditworthiness, lender and financial stability.
Average interest rates for personal loans based on credit score
People with good or excellent credit can find average loan interest rates in the low double digits. Those with average or poor credit pay a significantly higher average rate. This chart provides an overview of the average interest rate borrowers pay based on their credit score, based on bank rate research.
| Creditworthiness | Average interest on loans |
| 720–850 | 10.73%-12.50% |
| 690–719 | 13.50%-15.50% |
| 630-689 | 17.80%-19.90% |
| 300-629 | 28.50%-32.00% |
However, some borrowers get much lower interest rates because these are averages.
Average loan rates by type of lender
Local banks and credit unions with brick-and-mortar stores are known for their competitive personal loan products. However, online lenders often offer loans with lower starting interest rates for borrowers with excellent credit. To find an affordable loan product, compare your bank or credit union’s offerings with any online lenders you may know.
The Annual Percentage Rates (APRs) below are accurate as of March 28, 2024. Contact lender for any updated details.
Average personal loan rates by online lender
| Online lender |
Interest rates on loans |
| Reaches | 8.99%-35.99% |
| Avant | 9.95%-35.99% |
| Best egg | 8.99%-35.99% |
| Serious | Varies per lender |
| Happy money | 11.72%-17.99% |
| CreditClub | 8.98%-35.99% |
| Lending point | 7.99%-35.99% |
| LightStream | 8.89%-24.29% with autopay |
| OneMain Financial | 18.00%-35.99% |
| Bloom | 8.99%-35.99% |
| SoFi | 8.99%-29.49% with autopay |
| Upgrade | 8.49%-35.99% with autopay |
| Upstart | 7.80%-35.99% |
Average personal loan rates from banks
| Bank | Interest rates on loans |
| Citi | 10.49%-19.49% April |
| Santander bank | 7.99%-24.99% with ePay |
| American bank | 8.74%-24.99% with automatic payment |
| Wells Fargo | 7.49%-23.24% with automatic payment |
Average personal loan rates by credit union
| Credit union |
Interest rates on loans |
| Pen Fed Credit Union | 7.99%-17.99% April |
| Members 1st Federal Credit Union | From 12.39% |
| Federal Navy Credit Union | 8.99%-18.00% |
| USAA | 10.19%-18.51% |
Other factors that affect your personal loan interest rate
While your credit score plays an important role in the average personal loan interest rate you can qualify for, lenders consider other details to gauge your creditworthiness. These include:
- Your income is used to determine how much you can borrow.
- Your debt to income ratio helps lenders determine how much debt you already have compared to your income.
- Your employment status helps lenders have confidence in your ability to repay your loan.
- Your duration of the loan can affect your rate: Short-term personal loans typically have a higher interest rate than long-term personal loans.
Some lenders set minimum standards for their loans, such as a minimum income amount or a minimum credit score. You may also not be able to get approved for a personal loan if you recently have a bankruptcy on your credit report or have an outstanding collection case. Before applying for a personal loan, it may help to review your lender’s FAQ pages to see if you qualify.
The documentation you can expect when applying for a personal loan includes:
- Photo identification.
- Employer and income verification, such as pay stubs and bank statements.
- Proof of address.
What is considered a good interest rate on a personal loan?
A good interest rate on a personal loan can be different for everyone. In general, a good rate is below the average rate for a personal loan.
For you, a good rate is the best loan rate you can qualify for, based on your credit score, income, and other factors. Look for lenders that offer prequalification, which allows you to preview your interest rates and eligibility before formally applying. You can pre-qualify with multiple lenders and choose the one that offers the best rate.
it comes down to
Average interest rates for personal loans can vary depending on your credit score and other factors, but you do have some control. Make sure your credit score stays in the best possible shape and work on paying down debt to lower your debt-to-income ratio. The best ways to get a personal loan that suits your budget and goals are to take care of your financial health and shop around to compare loan interest rates.
