The average personal loan interest rate is currently 19.38%, according to the most recent aggregate, anonymized offer data from users with good credit who pre-qualified for a personal loan through NerdWallet.
A personal loan’s rate, expressed formally as an annual percentage rate (APR), determines the cost of your loan. The higher the APR, the more expensive the loan is, which is why we recommend choosing the personal loan with the lowest APR.
Rates on personal loans vary based on your credit score, the type of lender you choose and the loan purpose, among other things. The data below can give you an idea what rate to expect based on these factors.
Average personal loan rates by credit score
Most personal loans are unsecured, meaning they don’t require collateral, like a car or savings account, to secure the loan. Instead, lenders look at your credit to make approval decisions and determine your rate.
Generally, if you have good or excellent credit, lenders charge lower rates because your credit report shows a strong history of repaying other debts. If you have fair or bad credit, lenders charge higher rates, since you may have a history of missed payments.
Borrower credit rating | Score range | Estimated APR |
|---|---|---|
Excellent | 720-850 | 14.88% |
Good | 690-719 | 19.60% |
Fair | 630-689 | 23.84% |
Bad | 300-629 | 27.32% |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet in the last 30 days. Rates are estimates only and not specific to any lender.
Excellent credit (720 and above)
Borrowers in this credit band tend to see the lowest rates. They also have access to the widest pool of lenders, including the best-rated online lenders, banks or credit unions.
If you have excellent credit and can qualify for the loan of your choice, your decision may come down to extra features that help sweeten the deal and set that lender apart. This could include things like additional rate discounts, free financial planning or a particularly great mobile app experience.
💡 According to NerdWallet pre-qualification data from the last 30 days, excellent-credit borrowers saw an average APR of 14.88%.
Good credit (690 to 719)
Most lenders consider applicants in this range. While having a good credit score should help you qualify for a competitive rate, the lowest rates go to those who can pair a good credit score with higher income and low debt.
If you have good credit, compare loan offers from top-rated online lenders and banks. These two types of lenders should give you the most competitive rates.
💡 NerdWallet users with good credit scores received an average rate of 19.60%, according to NerdWallet pre-qualification data from the past 30 days.
Fair credit (630 to 689)
Rates start to climb in this credit band, and the lender pool narrows. Most banks won’t lend to borrowers with fair credit scores, though there are sometimes exceptions if you have a long-standing, positive relationship with a bank.
Several online lenders specialize in fair-credit borrowers and offer soft-pull pre-qualification, so you can see your rate without hurting your credit score. If you have fair credit, adding a co-signer or joint borrower with better credit and higher income can also help you get a lower rate.
💡 Based on anonymized NerdWallet offer data from the past 30 days, fair-credit borrowers saw an average APR of 23.84%.
Bad credit (below 630)
Rates in this band start to approach 36%, which is typically considered the highest APR an affordable loan can have. It’s also harder to get approved.
Similar to the fair-credit band, applying with a lender that lets you add a co-signer or co-borrower can help boost your chances. You may also want to consider a secured personal loan, in which you pledge collateral, which is offered by some lenders. But if you don’t repay the loan, you risk losing the collateral.
💡 NerdWallet users with bad credit scores received an average rate of 27.32%, according to anonymized data from the past 30 days.
Average personal loan rates by lender type
You can get a personal loan from three places: online lenders, banks and credit unions.
It’s best to compare options from multiple lenders before formally applying and submitting to a hard credit pull, which temporarily knocks a few points off your credit score.
Online lenders
Online lenders usually narrow their target borrower pool to a couple of credit segments — fair- and bad-credit borrowers, for example, or good- and excellent-credit borrowers — and then price their loans accordingly. Many online lenders disclose their minimum credit score requirement, which makes it easier to narrow down your options.
NerdWallet reviews 22 online lenders as part of its annual personal loan review process. In addition to low rates, we recommend looking for the ability to pre-qualify, fast funding and additional rate discounts.
Lender | APR range |
|---|---|
5.96% - 35.99%. | |
5.99% - 31.79%. | |
6.20% - 35.99%. | |
6.24% - 24.74%. | |
6.25% - 35.99%. | |
6.49% - 28.89%. | |
6.99% - 35.49%. | |
6.99% - 35.99%. | |
7.00% - 35.99%. | |
7.24% - 24.89%. | |
7.74% - 35.99%. | |
7.99% - 29.99%. | |
7.99% - 35.99%. | |
8.95% - 35.99%. | |
8.99% - 35.99%. | |
8.99% - 35.99%. | |
9.95% - 35.99%. | |
9.99% - 35.99%. | |
11.69% - 35.99%. | |
11.99% - 35.99%. | |
15.99% - 35.99%. | |
31.95% - 35.95%. |
Banks
Banks usually lend to good- and excellent-credit borrowers and may offer the lowest rates to existing customers, since they already have insight into how those customers manage debt.
NerdWallet reviews eight banks as part of its annual personal loan review process. Keep an eye out for banks that lend in all or most states, have a completely digital application process and fund loans within a day or two.
Lender | APR range |
|---|---|
6.74% - 26.74%. | |
6.99% - 19.99%. | |
7.89% - 26.44%. | |
7.99% - 23.99%. | |
7.99% - 24.99%. | |
9.24% - 24.99%. | |
9.84% - 29.00%. | |
9.99% - 17.49%. |
» MORE: Best bank loans
Credit unions
Credit unions are a unicorn in the personal loan space. They often accept fair- or bad-credit borrowers but still charge relatively low rates. Federal credit unions in particular cap personal loan APRs at 18%, which is a lower rate than you’ll find with many online lenders.
Because they work exclusively with members, credit unions look at membership history during the application process, similar to banks. But that means you can’t apply for a personal loan until you go through the steps of becoming a member.
NerdWallet reviews four credit unions as part of its annual review process. Pay close attention to a credit union’s membership requirements. Some credit unions may only lend to military members and their families or to those who live in a certain area.
Lender | APR range |
|---|---|
6.09% - 17.99%. | |
6.99% - 17.90%. | |
6.99% - 18.00%. | |
8.74% - 18.00%. |
Average personal loan rates by loan purpose
You can use a personal loan for almost any reason. But you’ll need to disclose the loan purpose when you fill out an application. Some lenders price loans differently based on what you’re using the money for.
Personal loans are usually a good idea when they improve your overall financial picture. Two common examples are debt consolidation loans and home improvement loans.
Debt consolidation
Using a personal loan to consolidate your debts (also called a debt consolidation loan) is a great way to save money on interest and potentially get out of debt faster.
With a debt consolidation loan, you use the money from the loan to pay off all your debts in one fell swoop. Some lenders even offer to pay off your creditors for you, saving you that step. You’re then left with only the personal loan.
A debt consolidation loan makes the most sense if you can qualify for a lower rate than your existing debts. Since credit cards in particular tend to have high interest rates, many people use debt consolidation loans as a tool for getting out of credit card debt.
💡 NerdWallet users with good credit who took out a credit card consolidation loan received an average rate of 18.60%, according to anonymized data from the past 30 days.
Home improvement
Another smart way to use a personal loan is to fund a home improvement project, particularly if the project helps increase the value of your home.
Home improvement loans tend to have longer terms — up to 20 years in some cases — since you’re usually borrowing a larger amount of money compared to a regular personal loan.
💡 NerdWallet users with good credit who took out a home improvement loan received an average rate of 21.67%, according to anonymized data from the past 30 days.
Are current personal loan rates high?
Though personal loan rates have dipped recently, they’re still the highest they’ve been in years. In May 2026, the average APR on a two-year loan from a commercial bank was 11.86%, according to the Federal Reserve.
Fed officials haven’t cut the federal funds rate in 2026, which is also keeping rates high. Unlike mortgages though, personal loans aren’t directly affected by occasional, incremental changes in this rate.
If you’re considering a personal loan — especially if it’s for something that improves your finances, like paying off debt — it’s best to start the process now instead of waiting for a small dip in rates that isn’t guaranteed.
How to get a lower personal loan rate
If you’re worried about your rate being too high, there are steps you can take to try and get a better loan offer.
1. Maximize your credit score before applying: Small actions, like checking your credit report for errors or paying off a small credit card balance, can help boost your credit score by a few points. Even a small jump in your score may be enough to get approved by a lender if you’re right on the cusp or get a slightly lower rate that helps you save money. You should also avoid opening new lines of credit before you apply, since this hurts your credit score.
2. Choose a shorter repayment term: Lenders usually offer lower APRs for shorter terms. That’s because longer loans represent more risk. The longer it takes you to repay, the more likely your financial situation is to change. Our advice is to choose the shortest repayment term where you can still afford the monthly payment.
🤓Nerdy Tip
NerdWallet offers a free personal loan calculator, where you can plug in your desired loan amount, APR and repayment term and view your monthly payment. You can also experiment with different terms to see how your payment changes. 3. Look for lenders with rate discounts: Many lenders offer some kind of rate discount. This is usually for things like setting up autopay for your monthly loan payment or sending loan funds directly to your creditors. Individual discounts typically range from 0.25 to 0.50 percentage points, but some lenders offer multiple rate discounts you can stack for even greater savings.
4. Avoid origination fees: Most online lenders charge an origination fee, which covers the cost of processing your loan and ranges from 1% to 10% of the loan amount. Try to avoid origination fees or choose the lender with the lowest origination fee. These fees are included in the APR, so that’s still the most important number to pay attention to.
5. Consider additional loan types: Co-signed, joint and secured loans are three types of personal loans that can help you get a lower rate. With a co-signed or joint loan, you apply with another person who is equally responsible for repaying the loan (though co-signers won’t have access to loan funds). If you’re comfortable securing the loan, you can also pledge collateral to help lower your rate.
Ready for next steps? Pre-qualify to compare offers
Lenders don’t usually divulge their underwriting techniques, but many major banks, online lenders and some credit unions offer pre-qualification. This process allows you to check your potential loan amount, rate and repayment term without a hit to your credit.
NerdWallet lets you pre-qualify with multiple lenders at once so you can get the best offer.
Frequently Asked Questions
What credit score do I need for the lowest personal loan rate?
Borrowers with credit scores of 720 or higher tend to qualify for the lowest personal rates, especially if they also have strong income and a low debt-to-income ratio.
Are personal loan rates higher at banks or online lenders?
It depends on your credit. Online lenders serve a broader range of people, so their average rates skew higher than those at banks. But they still may offer the best rate if you have fair or bad credit and don’t qualify for a traditional bank loan. If you have excellent credit, you can find competitive rates at both.
Are personal loan rates fixed or variable?
Personal loans carry fixed rates, meaning your APR and monthly payment stay the same over the life of the loan. This is one of the perks of personal loans, since it makes the monthly payment easier to budget for, and you don’t have to worry about surprise rate increases.
What’s the difference between a personal loan APR and interest rate?
APR and interest rate are so similar they’re often used interchangeably, but on personal loans there’s an important distinction. A personal loan APR includes the interest rate plus any origination fee, and the lender must disclose the APR before you sign a loan agreement. Your personal loan interest rate and APR may be the same number if there are no loan fees.
Can you refinance a personal loan to get a lower rate?
You can refinance a personal loan, and it’s a good idea if you’ve improved your credit or lowered your debt since you first borrowed. Lenders have different refinancing policies: Some allow you to refinance a personal loan you have with them, but others may require you to refinance with a different lender.
Article sources
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- 1.National Credit Union Administration. NCUA Board Extends Loan Interest Rate Ceiling. Accessed Sep 1, 2026.
- 2.Federal Reserve Bank of St. Louis. Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan. Accessed Sep 1, 2026.
