BEST OF

Best Personal Loan Rates of May 2022

The best personal loan rates go to borrowers with excellent credit, low debt and strong income. Compare personal loan rates to find the best offer.

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Personal loan interest rates currently range from 4.49% to about 35.99%. The interest rate you may get on a personal loan depends on factors including your credit score and credit history, annual income, existing debt and whether you get a loan from a bank, credit union or online lender.

Comparing personal loan rates — along with monthly payments and total interest — can help you choose the most affordable loan. Here’s a look at the best personal loan interest rates from online lenders, banks and credit unions.

Why trust NerdWallet? NerdWallet's editorial team has reviewed more than 35 personal loan providers and compared them to find the best personal loan rates. We've selected these lenders based on their minimum and maximum APRs.

Best Personal Loan Rates

Our pick for

Low interest rates and large loan amounts

SoFi
Get rate

on SoFi's website

SoFi

5.0

NerdWallet rating 
SoFi

Est. APR

6.99-22.28%

Loan amount

$5,000-$100,000

Min. credit score

680
Get rate

on SoFi's website


Min. credit score

680

Key facts

SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers.

Pros

  • No fees.

  • Offers co-sign loan options.

  • Offers 0.25 percentage point rate discount for setting up autopay.

  • Offers unemployment protection.

  • Provides mobile app to manage your loan.

Cons

  • No secured or joint loan option.

  • High minimum loan amount.

Qualifications

  • Must legally be an adult in your state.

  • Must be a U.S. citizen, permanent resident or visa holder.

  • Must be employed, have sufficient income or have an offer of employment to start within the next 90 days.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Fixed rates from 6.99% APR to 22.28% APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 5/12/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

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Our pick for

Low interest rates and fast funding

BestEgg
Get rate

on Best Egg's website

Best Egg

4.5

NerdWallet rating 
BestEgg

Est. APR

5.99-35.99%

Loan amount

$2,000-$50,000

Min. credit score

600
Get rate

on Best Egg's website


Min. credit score

600

Key facts

Best Egg offers personal loans for borrowers who want to consolidate debt and need cash fast.

Pros

  • Offers wide range of loan amounts.

  • Provides secured loan option for homeowners.

  • Offers direct payment to creditors with debt consolidation loans.

Cons

  • Charges origination fee.

  • No rate discount for autopay.

Qualifications

  • Minimum credit score: 600; borrower average is 700.

  • Minimum credit history: 3 years and 3 accounts.

  • Minimum income requirement is $3,500; borrower average is $80,000. Borrower must have enough cash flow to cover current financial obligations.

  • Minimum debt-to-income ratio: 40% or 65% including a mortgage; borrower average is 40%.

  • Employment: Must provide proof of income; part-time employees are eligible.

  • Must provide valid U.S. address and Social Security number.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: 0.99% - 5.99%.

  • Return fee: $15 if payments are not processed.

Disclaimer

*Trustpilot TrustScore as of June 2020. Best Egg personal loans, including the Best Egg Secured Loan, are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender or Blue Ridge Bank, a Nationally Chartered Bank, Member FDIC, Equal Housing Lender. “Best Egg” is a trademark of Marlette Holdings, Inc., a Delaware corporation. All uses of “Best Egg” refer to “the Best Egg personal loan”, “the Best Egg Secured Loan”, and/or “Best Egg on behalf of Cross River Bank or Blue Ridge Bank, as originator of the Best Egg personal loan,” as applicable. The term, amount, and APR of any loan we offer to you will depend on your credit score, income, debt payment obligations, loan amount, credit history and other factors. Your loan agreement will contain specific terms and conditions. About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000– $50,000. Residents of Massachusetts have a minimum loan amount of $6,500 ; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Annual Percentage Rates (APRs) range from 5.99%–35.99%. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0.99%–5.99% of your loan amount, which will be deducted from any loan proceeds you receive. The origination fee on a loan term 4-years or longer will be at least 4.99%. Your loan term will impact your APR, which may be higher than our lowest advertised rate.  You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest APR. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

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Our pick for

Low interest rates for bad credit

Upgrade
Get rate

on Upgrade's website

Upgrade

5.0

NerdWallet rating 
Upgrade

Est. APR

5.44-35.47%

Loan amount

$1,000-$50,000

Min. credit score

560
Get rate

on Upgrade's website


Min. credit score

560

Key facts

Upgrade offers personal loans plus credit-building tools; you'll need strong cash flow to qualify.

Pros

  • Allows secured and joint loans.

  • Offers a wide range of repayment terms.

  • Offers 0.5 percentage point rate discount for setting up autopay.

  • Offers significant rate discount for checking account customers.

  • Offers rate discount with direct payment to creditors on debt consolidation loans.

Cons

  • Charges origination fee.

  • No co-signed loan option.

Qualifications

  • Minimum credit score: 560; borrower average is 678.

  • Minimum annual income: None; borrower average is $78,000.

  • Minimum number of accounts on credit history: Two accounts.

  • Maximum debt-to-income ratio: Less than or equal to 75%, including mortgage and calculating in your new personal loan.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: 2.9% to 8%.

Disclaimer

Personal loans made through Upgrade feature APRs of 5.44%-35.47%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

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Our pick for

Low interest rates at a bank

Marcus by Goldman Sachs
Get rate

on Goldman Sachs's website

Marcus by Goldman Sachs

5.0

NerdWallet rating 
Marcus by Goldman Sachs

Est. APR

6.99-19.99%

Loan amount

$3,500-$40,000

Min. credit score

660
Get rate

on Goldman Sachs's website


Min. credit score

660

Key facts

With zero fees and customizable repayment terms, Marcus offers one of the best personal loans for borrowers with good credit.

Pros

  • No fees.

  • Wide variety of repayment term options.

  • Offers 0.25 percentage point rate discount for setting up autopay.

  • Offers direct payment to creditors for debt consolidation loans.


Cons

  • No co-sign, joint or secured loan option.

Qualifications

  • Minimum credit score: 660 FICO.

  • May need to provide proof of income, including recent pay stubs or bank statements.

  • May need to provide Social Security number, Individual Tax ID number or a photo ID.

Available Term Lengths

3 to 6 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

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Our pick for

Low interest rates for home improvement

Lightstream
Get rate

on LightStream's website

LightStream

5.0

NerdWallet rating 
Lightstream

Est. APR

4.99-19.99%

Loan amount

$5,000-$100,000

Min. credit score

660
Get rate

on LightStream's website


Min. credit score

660

Key facts

LightStream's APR range varies by the reason for a loan, with its lowest starting rate applying to loans for home improvement.

Pros

  • No fees.

  • Competitive rates among online lenders.

  • Offers 0.5 percentage point rate discount for setting up autopay.

  • Special features including rate beat program and satisfaction guarantee.

Cons

  • No option to pre-qualify on its website.

  • Requires several years of credit history.

  • Does not offer direct payment to creditors with debt consolidation loans.

Qualifications

  • Minimum credit score: 660.

  • Several years of credit history.

  • Multiple account types within your credit history, like credit cards, a car loan or other installment loan and a mortgage.

  • Strong payment history with few or no delinquencies.

  • Investments, retirement savings or other evidence of an ability to save money.

  • Enough income to pay existing debts and a new LightStream loan.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice. AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $25,000 loan at 4.98% APR with a term of 20 years would result in 240 monthly payments of $164.71. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2022 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

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Our pick for

Low interest rates for credit card consolidation

Happy Money
Get rate

on Happy Money's website

Happy Money

4.5

NerdWallet rating 
Happy Money

Est. APR

5.99-24.99%

Loan amount

$5,000-$40,000

Min. credit score

600
Get rate

on Happy Money's website


Min. credit score

600

Key facts

Payoff's personal loans and ongoing support help good credit borrowers consolidate credit card debt.

Pros

  • Competitive rates among online lenders.

  • Offers direct payment to creditors.

  • Reports payments to all three major credit bureaus.

  • No prepayment or late fees.


Cons

  • Charges origination fee.

  • No rate discount for autopay.

  • Requires several years of credit history.


Qualifications

  • Minimum credit score: 600.

  • Minimum credit history: Three years.

  • At least two open accounts on credit report.

  • Maximum debt-to-income ratio: 50% (excluding mortgage).

  • Free cash flow: At least $1,000.

  • Zero credit delinquencies.

  • Must be able to provide income verification.

  • No bankruptcies filed within the past two years.

  • Must provide Social Security number.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: 0%-5%.

Disclaimer

This does not constitute an actual commitment to lend or an offer to extend credit. Upon submitting a loan application, you may be asked to provide additional documents to enable us to verify your income, assets, and financial condition. Your interest rate and terms for which you are approved will be shown to you as part of the online application process. Most applicants will receive a variety of loan offerings to choose from, with varying loan amounts and interest rates. Borrower subject to a loan origination fee, which is deducted from the loan proceeds. Refer to full borrower agreement for all terms, conditions and requirements.

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Our pick for

Low interest rates for fair credit

Upstart
Get rate

on Upstart's website

Upstart

4.5

NerdWallet rating 
Upstart

Est. APR

5.40-35.99%

Loan amount

$1,000-$50,000

Min. credit score

None
Get rate

on Upstart's website


Min. credit score

None

Key facts

Upstart is a good option for those who have short credit histories and promising financial futures.

Pros

  • Accepts borrowers new to credit.

  • Able to fund loans within one business day.

  • Offers direct payment to creditors with some debt consolidation loans.

  • Allows borrowers to choose and change payment date.

Cons

  • Borrowers can choose from only two repayment term options.

  • Charges origination fee.

  • No mobile app to manage the loan.

Qualifications

  • Minimum credit score: None.

  • Minimum credit history: None, this lending platform accepts borrowers with credit history too limited to produce a FICO score.

  • Minimum gross income: $12,000.

  • Employment: Full-time job, full-time job offer starting in 6 months, a regular part-time job, or another source of regular income.

  • Must have U.S. residential street address where borrower resides (unless military personnel on active duty).

  • Must be at least 18 years old.

  • Valid email account required.

  • Personal bank account with U.S. routing number required.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 0% - 8%.

  • Late fee: 5% of past due amount or $15, whichever is greater.

Disclaimer

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website.The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 21.4% and 60 monthly payments of $24.62 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $14,775 including a $582 origination fee. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

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Our pick for

Low interest rates for existing customers

Wells Fargo Personal Loan
See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

4.5

NerdWallet rating 
Wells Fargo Personal Loan

Est. APR

5.74-19.99%

Loan amount

$3,000-$100,000

Min. credit score

None
See my rates

on NerdWallet's secure website


Min. credit score

None

Key facts

Wells Fargo is an option for borrowers who already bank with Wells, offering rate discounts and a co-sign option.

Pros

  • No origination or prepayment fee.

  • Joint loan option.

  • Offers wide range of loan amounts and repayment terms.

  • Rate discount for autopay.

  • Able to fund loans on same or next business day.

Cons

  • No option to pre-qualify.

  • Some features only available to existing customers.

Qualifications

  • Must provide personal and contact information.

  • Must provide employment and income information; documentation may be required to verify this information.

  • Must provide desired term and amount to borrow.

Available Term Lengths

1 to 7 years

Fees

  • Origination fee: None.

  • Late fee: $39.

Read Full Review

Our pick for

Low interest rates at a credit union

PenFed Credit Union Personal Loan
See my rates

on NerdWallet's secure website

PenFed Credit Union Personal Loan

5.0

NerdWallet rating 
PenFed Credit Union Personal Loan

Est. APR

4.99-17.99%

Loan amount

$600-$50,000

Min. credit score

None
See my rates

on NerdWallet's secure website


Min. credit score

None

Key facts

PenFed offers a wide range of personal loan amounts with low rates and minimal fees, and borrowers can pre-qualify.

Pros

  • Soft credit check with pre-qualification.

  • No origination or prepayment fees.

  • Offers joint and secured loan options.

  • Offers mobile app to manage your loan.

Cons

  • No discount for autopay.

  • Does not offer direct payment to creditors with debt consolidation loans.

  • No option to choose or change your payment date.

Qualifications

  • Minimum credit history: Two years.

  • Debt-to-income ratio: Below 55%.

Available Term Lengths

1 to 5 years

Fees

  • Late fee: $29

  • Returned payment fee: $30

  • Membership fee: $5

Disclaimer

Personal Loan rates range from 5.49% to 17.99% APR.Rates and offers current as of May 2022 and are subject to change.* Your actual APR will be determined at the time of disbursement and will be based on your creditworthiness, which includes an evaluation of your credit history and the length of your PenFed membership. Not all applicants will qualify for the lowest rate. Rates quoted assume excellent borrower credit history. Other eligibility requirements may apply. Loan Payment Example: A $50,000 personal loan financed at 5.49% APR would amount to 60 monthly payments of approximately $954.83 each.Loan amount determines rate and term. All loans are subject to a minimum monthly payment of $50.Insured by NCUA. To receive any advertised product, you must become a member of PenFed. Equal Housing Lender.

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Our pick for

Low interest rates and streamlined application

Figure Personal Loan
See my rates

on NerdWallet's secure website

Figure Personal Loan

4.5

NerdWallet rating 
Figure Personal Loan

Est. APR

5.75-31.44%

Loan amount

$5,000-$50,000

Min. credit score

680
See my rates

on NerdWallet's secure website


Min. credit score

680

Key facts

Figure loans are an option for good-credit borrowers seeking a fast and fully online loan experience.

Pros

  • Soft credit-check with pre-qualification.

  • Offers 0.25 percentage point rate discount for setting up autopay.

  • Reports payments to all three credit bureaus.

  • Offers mobile app to manage loan.

Cons

  • May charge origination fee.

  • No option to choose or change your payment date.

  • No co-sign, joint or secured loan options.

  • Borrowers can only choose from two repayment terms.

Qualifications

  • Minimum credit score: 680; borrower average is 710.

  • Maximum debt-to-income ratio: 60% excluding housing expenses; borrower average is 39% including a Figure loan.

  • Minimum monthly cash flow (income minus expenses) of $1,000 after signing the loan agreement.

  • Must have a valid government-issued U.S. ID.

  • Must be at least 18 years old.

  • Must be a U.S. citizen or permanent resident.

  • Must be employed.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 0% - 3%.

Read Full Review

How do lenders determine personal loan rates?

Your credit score is an important factor that lenders use to set your rate — but it’s not the only one. They also consider income, existing debts and credit history on a personal loan application.

Some lenders review additional information, like where you went to school, your occupation and where you live. A lender may also consider the requested loan amount and the reason you want to borrow to determine your rate.

How to get the best personal loan rate

The best personal loan rates typically go to borrowers with excellent credit, high and stable income, little existing debt and a credit history showing consistent on-time payments toward credit cards and other loans.

If you think you may not qualify for a low rate on a personal loan, here's what to do to help get a lower rate:

  • Review your credit report before you apply. If you have a low credit score, you can check your report to see what may be weighing it down and address it before you apply. For example, a past-due account could be a reason a lender would give you a high rate or not approve you at all.

  • Adjust your loan amounts and repayment term. Asking for a large loan or long repayment term could cause a lender to assign you a higher interest rate. Calculate your monthly payment to decide how much loan you can afford.

  • Get rate discounts. Lenders offer discounts for a few different reasons. Many online lenders offer rate discounts for setting up automatic payments. Some banks offer rate discounts to existing customers who hold certain bank accounts.

  • Find a no-fee lender. The APR includes any fees a lender tacks onto the loan, like an origination fee. If you choose a lender that doesn’t charge origination fees, you’ll avoid an interest rate that’s inflated by fees.

  • Add a co-signer, co-borrower or collateral. Borrowers with blemished credit who add someone with a better credit profile and higher income to their application may qualify for a lower rate. You may also be able to secure a personal loan with a lower rate by using collateral like a vehicle or CD account. Just know there are consequences if you default on the loan.

Many online lenders and some banks and credit unions let you pre-qualify for a personal loan. To do so, you provide some information about your credit, income and employment — as well as how much you want to borrow and why — and the lender will tell you the potential loan amount, rate and repayment term you could get.

Because pre-qualifying triggers a soft credit pull, you can do it as many times as you want without affecting your credit score. A hard credit pull will be triggered only if you submit a full application after pre-qualifying.

Average online personal loan rates by credit score

Unlike mortgage rates, personal loan rates rarely fluctuate. Occasionally, lenders may update their rates and credit score requirements, but those changes are typically a few tenths of a percentage point. Here's what average estimated APRs are on online personal loans, based on FICO score ranges:

How's your credit?

Score range

Estimated APR

Excellent

720-850.

10.5%.

Good

690-719.

15.5%.

Fair

630-689.

20.8%.

Bad

300-629.

26.1%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from Oct. 27, 2021, to April 27, 2022. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 FICO — are unlikely to qualify. Information in this table applies only to lenders with APRs below 36%.

Online lender rates vary by the type of borrower they target. A bad-credit lender may offer higher rates than a good-credit lender. Unlike many banks and credit unions, online lenders allow borrowers to pre-qualify and typically fund a loan more quickly. Some offer a fully online application process and a mobile app to manage the loan.

Rates for excellent credit

The monthly average lowest rates that excellent-credit borrowers received in 2020 were from 10.7% to 12.4%, according to data from users who pre-qualified with NerdWallet. High income and a long credit history showing on-time payments to other creditors will help you get the lowest rates. Lenders that approve borrowers in this credit band may also offer special perks, like rate discounts and zero fees.

Rates for good credit

The monthly average lowest rates good-credit borrowers received on personal loans in 2020 were from 15.5% to 19.5%, according to NerdWallet user data. The lowest rates in this credit band often go to borrowers who have low debt and high income, and a credit history showing accounts in good standing.

Rates for fair credit

The lowest rates of NerdWallet users who pre-qualified with fair credit averaged from 21% to 25.7% in any given month of 2020. Adding a co-signer or joint borrower with better credit and higher income than you can help you receive a lower rate.

Rates for bad credit

Bad-credit borrowers can expect rates on the high end of a lender’s APR range. The lowest rates of NerdWallet users who pre-qualified in this credit band in 2020 averaged from 26.7% to 32.4% in any given month. Those with the lowest scores may not qualify, but requesting a lower loan amount, adding a co-signer or securing your loan could help improve your chances for funding.

Personal loan rates at banks

Banks may offer competitive rates — and rate discounts if you’re already a customer — but they typically have tougher eligibility requirements and can take longer to fund your loan than online lenders. The average rate charged by banks in February 2021 for a two-year loan was 9.46%, according to the most recent data from the Federal Reserve.

Personal loan rates at credit unions

Credit union loans may carry lower rates than banks and online lenders, especially for those with fair or bad credit, and loan officers may be more willing to consider your overall financial picture.

The average rate charged by credit unions in March 2021 for a fixed-rate, three-year loan was 8.86%, according to the National Credit Union Administration. Federal credit unions cap the APR on personal loans at 18%.

You have to become a member of a credit union to apply for a loan, which may mean paying fees or meeting certain eligibility requirements.

What’s the difference between APR and interest rate?

A loan’s APR includes the interest rate, plus all fees. If a lender charges an origination fee, for example, that would be factored into the annual percentage rate.

Refinancing a personal loan to get a lower rate

You may lock in a lower rate by refinancing a personal loan, especially if you’ve improved your credit score or lowered your debt since you first borrowed. Some lenders allow borrowers to refinance a personal loan you have with them, while others will refinance a loan from a different lender.

If you refinance, be mindful of the new loan’s term. Even with a lower rate, a longer repayment term could mean you’ll pay more overall interest.

Last updated on May 2, 2022

Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.

To recap our selections...

NerdWallet's Best Personal Loan Rates of May 2022

Frequently asked questions