BEST OF

Best Personal Loan Rates of February 2023

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.

By Annie Millerbernd 

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Personal loan interest rates currently range from 5.91% to about 35.99%. The interest rate you 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.

Compare personal loan rates — along with monthly payments and total interest — to 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

Online personal loan rates

Lightstream
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on LightStream's website

LightStream

5.0

NerdWallet rating 
Lightstream

Est. APR

6.99-23.99%

Loan amount

$5,000-$100,000

Min. credit score

660
Get rate

on LightStream's website

SoFi
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on SoFi's website

SoFi

5.0

NerdWallet rating 
SoFi

Est. APR

7.99-23.43%

Loan amount

$5,000-$100,000

Min. credit score

None
Get rate

on SoFi's website

Upstart
Get rate

on Upstart's website

Upstart

4.5

NerdWallet rating 
Upstart

Est. APR

6.50-35.99%

Loan amount

$1,000-$50,000

Min. credit score

None
Get rate

on Upstart's website

Our pick for

Bank personal loan rates

TD Bank Personal Loan
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on NerdWallet's secure website

TD Bank Personal Loan

4.5

NerdWallet rating 
TD Bank Personal Loan

Est. APR

6.99-19.99%

Loan amount

$2,000-$50,000

Min. credit score

None
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on NerdWallet's secure website

Truist Bank Personal Loan
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on NerdWallet's secure website

Truist Bank Personal Loan

4.5

NerdWallet rating 
Truist Bank Personal Loan

Est. APR

6.49-15.98%

Loan amount

$3,500-$50,000

Min. credit score

None
See my rates

on NerdWallet's secure website

American Express Personal Loan
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on NerdWallet's secure website

American Express Personal Loan

4.5

NerdWallet rating 
American Express Personal Loan

Est. APR

5.91-19.97%

Loan amount

$3,500-$40,000

Min. credit score

None
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on NerdWallet's secure website

Citibank
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Citibank

4.0

NerdWallet rating 
Citibank

Est. APR

6.99-23.99%

Loan amount

$2,000-$30,000

Min. credit score

None
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on NerdWallet's secure website

Our pick for

Credit union personal loan rates

PenFed Credit Union Personal Loan
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PenFed Credit Union Personal Loan

5.0

NerdWallet rating 
PenFed Credit Union Personal Loan

Est. APR

7.74-17.99%

Loan amount

$600-$50,000

Min. credit score

700
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on NerdWallet's secure website

First Tech Credit Union Personal Loan
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on NerdWallet's secure website

First Tech Credit Union Personal Loan

5.0

NerdWallet rating 
First Tech Credit Union Personal Loan

Est. APR

6.70-18.00%

Loan amount

$500-$50,000

Min. credit score

660
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on NerdWallet's secure website

Navy Federal Credit Union Personal Loan
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Navy Federal Credit Union Personal Loan

5.0

NerdWallet rating 
Navy Federal Credit Union Personal Loan

Est. APR

7.49-18.00%

Loan amount

$250-$50,000

Min. credit score

None
See my rates

on NerdWallet's secure website

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.

Here are tips to lower your approved rate:

  • Review your credit report before you apply. If you have a low credit score, check your report to see what is weighing it down and address it before you apply. For example, a past-due account could be a reason a lender gives you a high rate or denies your application.

  • 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. Not all lenders charge an origination fee, and some have loans with zero fees, including late fees.

  • Add a co-signer, co-borrower or collateral. Borrowers with blemished credit can add a co-applicant with better credit and higher income to 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 savings account. Just know there are consequences if you default on the loan.

Many lenders let you pre-qualify for a personal loan. You provide some information about your credit, income and employment — as well as how much you want to borrow and why — to see your potential loan amount, rate and repayment term.

Because pre-qualifying only triggers a soft credit pull, you can do it as many times as you want without affecting your credit score. A lender does a hard credit pull 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. When they do change, it’s usually incremental and often tied to changes in the economy. If unemployment rises or interest rates soar, for example, a lender may tighten their borrower requirements and adjust their APRs. Here's what average estimated APRs are on online personal loans, based on credit score ranges:

How's your credit?

Score range

Estimated APR

Excellent

720-850.

11.3%.

Good

690-719.

15.6%

Fair

630-689.

22.3%.

Bad

300-629.

25.2%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from July 1, 2022, to Oct. 31, 2022. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below a 500 credit score — 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. Large banks and credit unions, as well as online lenders, allow borrowers to pre-qualify and typically fund a loan quickly. Some offer a fully online application process and a mobile app to manage the loan.

Rates for excellent credit

Borrowers with excellent credit (720 or higher score) can expect rates on the low end of a lender’s range. 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

A good credit score of 690 to 719 will help qualify for a low rate, but good-credit borrowers who get the lowest rates often have low debt and high income, and a credit history showing accounts in good standing.

Rates for fair credit

Fair-credit borrowers (630 to 689 scores) can expect slightly higher rates. If you’re not borrowing for an urgent expense, it may be worth your time to build up to the good credit range, so you can get a lower APR. Adding a co-signer or joint borrower with better credit and higher income than you can also 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. 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 November 2022 for a two-year loan was 11.23%, 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 December 2022 for a fixed-rate, three-year loan was 9.66%, 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. According to the Truth in Lending Act, all lenders must disclose a loan’s APR before you sign an agreement.

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 February 1, 2023

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 February 2023

Frequently asked questions