Average Personal Loan Interest Rates for June 2025

Q: What are some alternatives to personal loans?

Other ways to borrow money include: 0% APR credit cards . Personal line of credit . Home equity loan or HELOC . 401(k) loan . Family loan .

Average personal loan interest rates remain elevated, with the lowest rates available to those with strong credit. Compare offers from multiple lenders to get the best interest rate.

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Updated Jun 18, 2025 · 3 min read

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The average personal loan interest rate for consumers with good credit (690 to 719 credit score) is currently 16.48%, according to aggregate, anonymized offer data from users who pre-qualified for a personal loan through NerdWallet.

Personal loan annual percentage rates, like other types of credit, remain higher than they were in 2020 and 2021. Many factors determine your rate, including shifts in the economy, the type of lender you apply with and your credit profile.

» MORE: Compare the best personal loan rates

Here are current average personal loan rates, plus more information about how lenders decide your rate.

Average online personal loan rates

Borrower credit rating	Score range	Estimated APR
Excellent	720-850.	13.31%.
Good	690-719.	16.48%.
Fair	630-689.	20.23%.
Bad	300-629.	20.62%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from May 1, 2025, through May 31, 2025. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

APR ranges for online lenders

Here are APR ranges on loans from online lenders that NerdWallet reviews and rates.

Lender	APR range
Achieve	8.99% - 29.99% .
Avant	9.95% - 35.99% .
Best Egg	6.99% - 35.99% .
Happy Money	8.95% - 29.99% .
Laurel Road	8.99% - 23.35% .
LendingClub	7.90% - 35.99% .
LendingPoint	7.99% - 35.99% .
LightStream	6.49% - 25.29% .
Mariner Finance	16.00% - 35.99% .
OneMain Financial	18.00% - 35.99% .
Oportun	32.93% - 35.95% .
Prosper	8.99% - 35.99% .
Reach	5.99% - 35.99% .
Rocket Loans	8.71% - 29.99% .
SoFi	8.99% - 35.49% .
Universal Credit	11.69% - 35.99% .
Upgrade	7.99% - 35.99% .
Upstart	6.70% - 35.99% .
Zable	16.44% - 35.99% .

» MORE: Best online loans

Average bank personal loan rates

In February 2025, the average APR on a two-year loan from a commercial bank was 11.66%, according to the Federal Reserve.

APR ranges for bank lenders

Here are APR ranges on loans from banks that NerdWallet reviews and rates.

Lender	APR range
American Express	5.91% - 19.97% .
Axos	11.79% - 20.84% .
Citibank	11.49% - 20.49% .
Discover	7.99% - 24.99% .
PNC	8.19% - 24.99% .
Santander	7.99% - 24.99% .
TD Bank	8.99% - 23.99% .
Truist	8.87% - 17.82% .
USAA	10.19% - 17.74% .
U.S. Bank	8.74% - 24.99% .
Wells Fargo	7.49% - 23.74% .

» MORE: Best bank loans

Average credit union personal loan rates

In March 2025, the average APR on a three-year loan from a credit union was 10.75%, according to the National Credit Union Administration.

APR ranges for credit union lenders

Here are APR ranges on loans from credit unions that NerdWallet reviews and rates.

Lender	APR range
Alliant	9.49% - 29.49% .
First Tech	8.14% - 18.00% .
Navy Federal	8.99% - 18.00% .
PenFed	8.99% - 17.99% .

» MORE: Learn the benefits of credit union loans

Average personal loan rates by credit score

Rates for excellent credit

In May, borrowers with excellent credit (720 or higher score) received an average rate of 13.31%, according to aggregate, anonymized data from users who pre-qualified for a personal loan through NerdWallet.

A high income and long credit history showing on-time payments to other creditors will help you get the lowest rates. Lenders may also offer special perks to excellent-credit borrowers, like rate discounts and zero fees.

» MORE: Best personal loans for excellent credit

Rates for good credit

NerdWallet users with good credit scores (690 to 719) received an average rate of 16.48% in May, according to data from users that pre-qualified for a personal loan with NerdWallet.

A good score will help you qualify for a low rate, but the lowest rates go to those with low debt, high income and a credit history showing accounts in good standing.

» MORE: Best personal loans for good credit

Rates for fair credit

Fair-credit NerdWallet users (630 to 689 scores) received an average rate of 20.23% in May, according to NerdWallet’s anonymized pre-qualification data.

If you have fair credit, adding a co-signer or joint borrower with better credit and higher income can help you get a lower rate.

» MORE: Best personal loans for fair credit

Rates for bad credit

NerdWallet users with scores below 630 who pre-qualified in May received an average rate of 20.62%, according to anonymized data.

Consumers with the lowest scores may not qualify for a personal loan with a rate below 36%, which is the highest APR most consumer advocates say an affordable loan can have. Requesting a lower loan amount, adding a co-signer or securing your loan could help improve your chances for funding.

» MORE: Best personal loans for bad credit

Are current personal loan rates high?

Though personal loan rates have dipped recently, they are still the highest they’ve been in years. Commercial bank loan rates remain at a high not seen since before the Great Recession, according to Fed data.

Unlike mortgages, personal loans aren’t directly affected by occasional, incremental changes in the Federal Funds rate, but sustained rate decreases over time could help in lowering personal loan rates.

Federal Reserve officials lowered the Fed rate three times in 2024. Officials have not lowered rates yet in 2025.

» MORE: How to score a low personal loan rate

Average online personal loan rates over time

Average bank personal loan rates over time

Average credit union personal loan rates over time

🤓 Nerdy Tip

Rates are high for most types of financing right now, including credit cards and mortgages. Compare personal loans and alternatives, like 0% APR credit cards and home equity financing, to find the most affordable one.

Why lenders charge different personal loan rates

Most personal loans are unsecured and don’t require collateral to secure the loan. Instead, lenders use borrowers’ financial and credit profiles to make approval decisions and determine their rates. Most lenders tailor their APR ranges to the type of borrower they want to attract.

Lenders that accept good- or excellent-credit borrowers may charge lower rates because those consumers’ credit reports show a strong history of repaying credit cards and other loans. Lenders that target mostly bad-credit consumers, with credit histories showing missed payments, may charge higher rates to make up for the added risk.

Online lenders: Online lenders often 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 price their loans accordingly.

Banks: Large banks usually work with good-credit borrowers and offer the lowest rates to existing customers because they know how those borrowers manage credit and debt and may see them as less risky.

Credit unions: Credit unions are an exception: They often accept fair- or bad-credit borrowers but charge relatively low rates. Federal credit unions cap personal loan APRs at 18%. Because they work exclusively with their members, credit unions are able to consider the borrower’s membership history when determining their rate.

» MORE: Best personal loan lenders

How is your personal loan rate decided?

Here are four factors that are likely to affect your personal loan rate.

Credit score: Many lenders set minimum credit score requirements and may publish this information on their websites. This can help you rule out lenders with credit score requirements well above or below yours.
Payment history: Your repayment history toward other loans and credit cards is a top factor that lenders use to determine your rate. A long history of on-time payments to multiple creditors will work in your favor, while a history of missed and late payments may contribute to a higher rate.
Income: Most lenders like to see that you have at least enough money to make monthly loan payments and cover your other bills. Having extra cushion in your budget each month may show the lender that you’re a low-risk borrower and get you a lower rate.
Debt-to-income ratio (DTI): Your DTI is the percentage of your monthly income that goes toward other debts, such as car, student or mortgage loan payments. Lenders try to avoid providing loans that will overextend borrowers’ budgets, so many like to see a DTI at or below 50%, but lower is better.

» MORE: Personal loan requirements

Pre-qualify to compare offers

Lenders don’t usually divulge their underwriting techniques, but many major banks, credit unions and online lenders offer pre-qualification. This process allows you to check your potential loan amount, rate and repayment term without a hard credit pull.

Frequently Asked Questions

What is a good rate on a personal loan?

A personal loan’s annual percentage rate (APR) represents the cost of the loan and includes the interest rate plus any other fees a lender charges, like an origination fee. Your personal loan interest rate and APR may be the same number if there are no loan fees.

Because these loans usually don’t require collateral, such as a house or car, your personal loan rate depends heavily on your credit and financial information.

A good personal loan rate is the lowest one you qualify for. APRs are typically between 6% and 36%, which is a wide range compared to other types of loans like mortgages and auto loans. Because rates can vary widely, it’s not helpful to compare your rate to someone else’s. Instead, pre-qualify for personal loans with multiple lenders to find the lowest rate and best terms. This process doesn’t require a hard credit pull, so it’s a low-risk way to determine which lender could offer you the best rate.

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. According to the Truth in Lending Act, all lenders must disclose a loan’s APR before you sign an agreement.

Can you refinance a personal loan to get a lower rate?

If you currently have a personal loan with a high rate, you may be able to lock in a lower rate by refinancing a personal loan, especially if you’ve improved your credit or lowered your debt since you first borrowed. Lenders have different refinancing policies: Some allow borrowers to refinance a personal loan you have with them, but others may require you to refinance with a different lender.

If you refinance, be mindful of the new loan’s term. Even with a lower rate, a longer repayment term could raise the total interest costs.

What are some alternatives to personal loans?

Other ways to borrow money include:

Article sources

NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.

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