BEST OF
Best Personal Loan Rates of January 2021
Personal loan interest rates currently range from about 6% to 36%. The best rates go to borrowers with excellent credit, low debt and strong income.
The actual interest rate you receive on a personal loan 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.
The actual interest rate you receive on a personal loan 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 January 2021
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Lowest online personal loan interest rates | 5.99 - 24.99% | 640 | on Payoff's website | |
Best for Lowest online personal loan interest rates | 4.49 - 20.49% | 660 | on LightStream's website | |
Best for Lowest online personal loan interest rates | 6.16 - 35.99% | 580 | on Upstart's website | |
Best for Lowest online personal loan interest rates | 5.99 - 20.69% | 680 | on SoFi's website | |
Best for Lowest online personal loan interest rates | 5.99 - 29.99% | 640 | on Best Egg's website | |
Best for Lowest personal loan interest rates at banks | 5.99 - 24.49% | None | 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 | |
Best for Lowest personal loan interest rates at banks | 5.69 - 18.00% | 700 | See my rates on NerdWallet's secure website | |
Best for Lowest personal loan interest rates at banks | 6.99 - 21.99% | 700 | See my rates on NerdWallet's secure website |
Our picks for
Lowest online personal loan interest rates
on Payoff's website
Payoff
Min. Credit Score
Est. APR
Loan Amount
on Payoff's website
on LightStream's website
LightStream
Min. Credit Score
Est. APR
Loan Amount
on LightStream's website
on Upstart's website
Upstart
Min. Credit Score
Est. APR
Loan Amount
on Upstart's website
on SoFi's website
SoFi

Min. Credit Score
Est. APR
Loan Amount
on SoFi's website
on Best Egg's website
Best Egg
Min. Credit Score
Est. APR
Loan Amount
on Best Egg's website
Our picks for
Lowest personal loan interest rates at banks

on NerdWallet's secure website
Wells Fargo Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
HSBC Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
BB&T Bank Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
TD Bank Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
» 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.
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:
How's your credit? | Score range | Estimated APR |
---|---|---|
Excellent | 720-850 | 11.8% |
Good | 690-719 | 17.4% |
Fair | 630-689 | 23.4% |
Bad | 300-629 | 28.7% (Lowest scores unlikely to qualify.) |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace between Jan. 1, 2020, and Dec. 31, 2020. Rates are estimates only and not specific to any lender.
» MORE: Compare personal loans for excellent credit | good credit | fair credit | bad credit
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 June 2020 for a fixed-rate, 3-year loan was 9.21% 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.
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.
Last updated on January 20, 2021
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 January 2021
- Payoff: Best for Lowest online personal loan interest rates
- LightStream: Best for Lowest online personal loan interest rates
- Upstart: Best for Lowest online personal loan interest rates
- SoFi: Best for Lowest online personal loan interest rates
- Best Egg: Best for Lowest online personal loan interest rates
- Wells Fargo Personal Loan: Best for Lowest personal loan interest rates at banks
- HSBC Personal Loan: Best for Lowest personal loan interest rates at banks
- BB&T Bank Personal Loan: Best for Lowest personal loan interest rates at banks
- TD Bank Personal Loan: Best for Lowest personal loan interest rates at banks
Frequently asked questions
A good interest rate on a personal loan is one that makes your monthly payments manageable over the loan's term. The lowest rates are usually around 6%, and the highest go up to 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 than 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. You may also find some of the lowest rates on personal loans at local credit union.
When you apply for a personal loan, lenders use factors like your credit, income and existing debt to determine the interest rate you'll get. The loan term also affects the interest rate, and some lenders consider the loan's purpose.