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Best Personal Loan Rates of June 2020

Steve NicastroMay 26, 2020

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Personal loan rates currently range from about 6% to 36%. The actual rate you receive depends on factors such as 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 rates — along with monthly payments and total interest — can help you choose the most affordable loan. Here’s a look at average interest rates on personal loans from online lenders, banks and credit unions.

Summary of Best Personal Loan Rates of June 2020

LenderNerdWallet Rating Est. APRMin. Credit ScoreLearn More
Lightstream

LightStream

on LightStream's website

Best for: Lowest online personal loan interest rates

5.49 - 20.49%

660

on LightStream's website

SoFi

SoFi

on SoFi's website

Best for: Lowest online personal loan interest rates

5.99 - 19.96%

680

on SoFi's website

Payoff

Payoff

on Payoff's website

Best for: Lowest online personal loan interest rates

5.99 - 24.99%

640

on Payoff's website

BestEgg

Best Egg

on Best Egg's website

Best for: Lowest online personal loan interest rates

5.99 - 29.99%

640

on Best Egg's website

PNC Bank Personal Loan

PNC Bank Personal Loan

See my rates

on NerdWallet's secure website

Best for: Lowest personal loan interest rates at banks

7.49 - 22.49%

None

See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

Wells Fargo Personal Loan

See my rates

on NerdWallet's secure website

Best for: Lowest personal loan interest rates at banks

5.49 - 24.49%

600

See my rates

on NerdWallet's secure website

HSBC Personal Loan

HSBC Personal Loan

See my rates

on NerdWallet's secure website

Best for: Lowest personal loan interest rates at banks

6.99 - 22.90%

700

See my rates

on NerdWallet's secure website

BB&T Bank Personal Loan

BB&T Bank Personal Loan

See my rates

on NerdWallet's secure website

Best for: Lowest personal loan interest rates at banks

4.74 - 18.00%

660

See my rates

on NerdWallet's secure website

Our picks for

Lowest online personal loan interest rates

Lightstream

on LightStream's website

LightStream

Lightstream

Min. Credit Score

660

Est. APR

5.49 - 20.49%

Loan Amount

$5,000 - $100,000

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.

  • Co-sign option.

  • Low starting rates.

Cons

  • Does not offer pre-qualification on its website.

  • Requires several years of credit history.

Qualifications

  • Minimum credit score of 660.

  • No minimum income specified.

  • Maximum debt-to-income ratio varies depending on loan purpose.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

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). Rate quote includes AutoPay discount. AutoPay discount is only available when selected prior to loan funding. 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 $5,000 loan at 12.8% APR with a term of 3 years would result in 36 monthly payments of $168. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. SunTrust now Truist is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust®, Truist, LightStream®, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners. Lending services provided by SunTrust now Truist Bank.

Read Full Review
SoFi

on SoFi's website

SoFi

Min. Credit Score

680

Est. APR

5.99 - 19.96%

Loan Amount

$5,000 - $100,000

on SoFi's website


Min. Credit Score

680

Key facts

SoFi has a slightly higher credit score requirement than LightStream and Marcus, and requires at least $45,000 in annual income.

Pros

  • Low fixed and variable rates.

  • Flexible payment options.

  • Offers member perks.

Cons

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

  • Does not offer refinance options.

Qualifications

  • Minimum credit score: 680, but typically 700 or higher.

  • Minimum annual income: None; borrowers' average is over $100,000.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Fixed rates from 5.99% APR to 19.96% APR (with AutoPay). SoFi rate ranges are current as of May 14, 2020 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. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. 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.

Read Full Review
Payoff

on Payoff's website

Payoff

Min. Credit Score

640

Est. APR

5.99 - 24.99%

Loan Amount

$5,000 - $35,000

on Payoff's website


Min. Credit Score

640

Key facts

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

Pros

  • Low starting rates.

  • Competitive rates among similar lenders.

  • Offers direct payment to creditors with debt consolidation loans.

  • Offers online educational resources.

Cons

  • No co-sign or secured loan option.

  • Charges origination fee.

Qualifications

  • Minimum credit score of 640.

  • Minimum credit history: 2 years.

  • Minimum annual income: $40,000.

  • Debt-to-income ratio: less than 50%.

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.

Read Full Review
BestEgg

on Best Egg's website

Best Egg

BestEgg

Min. Credit Score

640

Est. APR

5.99 - 29.99%

Loan Amount

$2,000 - $35,000

on Best Egg's website


Min. Credit Score

640

Key facts

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

Pros

  • Able to fund loans within one business day.

  • Soft credit check with pre-qualification.

  • Option to change your payment date.

Cons

  • Charges origination fee.

  • Charges $15 late fee.

Qualifications

  • Minimum credit score: 640.

  • Minimum credit history: Not specified.

  • Minimum annual income: Not specified, but average is $80,000.

  • Debt-to-income ratio: Not specified, but typically less than 35%.

Available Term Lengths

3 to 5 years

Fees

  • Origination fee: 0.99% - 5.99%.

  • Late fee: $15.

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

Disclaimer

Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. “Best Egg” is a trademark of Marlette Funding, LLC. All uses of “Best Egg” refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River 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. The timing of available funds upon loan approval may vary depending upon your bank’s policies. Loan amounts range from $2,000–$35,000. 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%–29.99%.  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. 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.

Read Full Review

Our picks for

Lowest personal loan interest rates at banks

PNC Bank Personal Loan
See my rates

on NerdWallet's secure website

PNC Bank Personal Loan

PNC Bank Personal Loan

Min. Credit Score

None

Est. APR

7.49 - 22.49%

Loan Amount

$1,000 - $35,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

PNC is a good option if you have an existing PNC account or want to bring along a co-signer.

Pros

  • Low rates.

  • Fast funding.

  • Co-sign option.

Cons

  • Hard credit pull at application.

  • Late fee.

  • Available in limited number of states.

Qualifications

  • No minimum credit score, income or debt-to-income ratio requirements disclosed.

  • Live in one of the states that PNC serves.

Available Term Lengths

6 months to 5 years

Fees

  • Origination fee: None.

  • Late fee: Greater of $40 or 10% of amount due, after 15-day grace period.

Disclaimer

Read Full Review
Wells Fargo Personal Loan
See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

Wells Fargo Personal Loan

Min. Credit Score

600

Est. APR

5.49 - 24.49%

Loan Amount

$3,000 - $100,000

See my rates

on NerdWallet's secure website


Min. Credit Score

600

Key facts

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

Pros

  • Offers secured loan option.

  • Offers free credit score access.

  • Offers direct payment to creditors with debt consolidation loans.

Cons

  • Borrowers without existing Wells Fargo accounts required to apply in person.

  • No option to pre-qualify.

Qualifications

  • Minimum credit score: 600; most borrowers have scores above 660.

Available Term Lengths

1 to 7 years

Fees

  • Origination fee: None.

Disclaimer

Read Full Review
HSBC Personal Loan
See my rates

on NerdWallet's secure website

HSBC Personal Loan

HSBC Personal Loan

Min. Credit Score

700

Est. APR

6.99 - 22.90%

Loan Amount

$3,000 - $30,000

See my rates

on NerdWallet's secure website


Min. Credit Score

700

Key facts

The HSBC personal loan is an option for good-credit borrowers, and you don't have to bank with HSBC.

Pros

  • No origination fee.

  • Able to fund a loan by the next business day.

  • Soft credit check with pre-qualification for new customers.

Cons

  • Requires an in-person visit for existing customers.

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

  • No co-sign or secured loan option.

Qualifications

  • No minimum credit score, income or debt-to-income ratio requirements.

  • Not available in Wisconsin.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: None.

  • Late fee: 5% of monthly payment, capped at $39.

  • Returned payment fee: 5% of monthly payment, capped at $39.

Disclaimer

Read Full Review
BB&T Bank Personal Loan
See my rates

on NerdWallet's secure website

BB&T Bank Personal Loan

BB&T Bank Personal Loan

Min. Credit Score

660

Est. APR

4.74 - 18.00%

Loan Amount

$3,500 - $50,000

See my rates

on NerdWallet's secure website


Min. Credit Score

660

Key facts

Ideal if you’re a good-credit borrower looking for a low rate. Like most other banks, BB&T doesn’t offer pre-qualification.

Pros

  • Co-sign option.

  • Refinancing option.

  • Fast funding.

Cons

  • Limited service area.

  • No pre-qualify option.

Qualifications

  • Minimum credit score: 660.

  • No minimum income specified.

  • Minimum credit history: 2 years.

  • Maximum debt-to-income ratio: 40%

Available Term Lengths

2 to 5 years

Fees

  • Late fee: $35

Disclaimer

Read Full Review

» MORE: Compare online personal loans

Online personal loan interest rates

Online lenders offer the lowest starting interest rates on personal loans to borrowers with good to excellent credit.

You can use a personal loan calculator to see estimated rates and payments from online lenders based on your credit score.

The annual percentage rate on a loan is its interest rate plus all fees, including origination fees. When you're shopping for a loan, always check APRs for the best cost comparison.

In addition to low starting rates, online lenders typically do a soft credit check for pre-qualification, which allows you to compare rates without having an impact on your credit score. Banks and credit unions typically do a hard credit check, which can temporarily shave points off your credit score.

» MORE: 4 steps to pre-qualify for a personal loan

Online personal loan rates by credit score

Your score helps lenders determine the rate you’ll pay on the loan. Check your credit score for free if you don’t know it.

Here's what average estimated APRs are on personal loans, based on FICO score ranges, according to a NerdWallet lender survey.

For excellent credit scores between 720 and 850, the average personal loan rate is 13.9%. For good credit scores from 690 to 719, the average rate is 18.0%. For fair credit scores between 630 and 689, the average rate is 21.8% and for bad credit scores between 300 and 629, the rate is 27.2%.

Personal loan interest rates at banks and credit unions

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.

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

The average rate charged by credit unions in December 2019 for a fixed-rate, 3-year loan was 9.36% APR, according to the most recent data from 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, and the loan application may result in a hard credit check.

» MORE: Compare banks offering personal loans

How to pre-qualify for a personal loan

Pre-qualifying for an online loan can get you access to potential loan terms, including the loan’s interest rate. You can pre-qualify on NerdWallet to compare offers from multiple lenders and find the lowest rate.

» MORE: Learn how to pre-qualify for a loan

Last updated on May 26, 2020

Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.

To recap our selections...

NerdWallet's Best Personal Loan Rates of June 2020

Frequently asked questions

A good interest rate on a personal loan is one that makes your monthly payments manageable. The lowest personal loan interest rates are usually around 6% and the highest are usually 36%. The best interest rates go to good- or excellent-credit borrowers (690 or higher FICO score) with debt-to-income ratios below 40% and steady income.

Online lenders tend to offer personal loans with lower interest rates thank banks, unless you're an existing customer at a bank that offers unsecured loans. Online lenders also let you pre-qualify, so you can see your rate before applying without a hard credit pull. If you're a member of a credit union, though, you may have access to personal loans with some of the lowest rates available.

Lenders use factors like your credit, income and existing debts to determine the interest rate you'll get on a personal loan. The loan term also affects the interest rate, and some lenders consider the loan's purpose.