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Borrowers with poor credit ratings saw rates improve this week. However, if you have a good or fair score, you can get a lower score.
Although some personal loan rates have fallen over the past week, overall they have increased. The Federal Reserve raised the federal funds rate six times in 2022 in an attempt to rein in soaring inflation. These higher rates ripple through the economy, leading to higher borrowing costs for everything from mortgages and credit cards to auto and personal loans.
You can get a personal loan for many reasons. Lately, most borrowers use them for debt consolidation. Other popular uses of silver include financing a home improvement projectpay a medical bill and cover general household expenses.
Average Personal Loan Rates
We have compiled a database of 28 personal loan products and averages their rates so you know the current landscape. The higher your credit score, the more likely you are to qualify for a better rate. Prices are unchanged from last week.
The actual rate you will receive depends on your creditworthiness and other aspects of your financial situation. Check your rates with the lenders you are interested in to see what you qualify for.
Average personal loan rates by credit score
These rates are based on data from 150 borrowers who applied for loans and received rates.
Average loan amount and term length by credit score
These loan amounts and terms are based on data from 150 borrowers who applied for loans and received rates.
Percentage of Borrowers by Lending Purpose
These lending goals are based on data from 157 borrowers who applied for loans and received rates. A borrower used loan funds to pay for baby fees this week.
Insider’s Featured Personal Loan Companies
5.99% to 21.49% with AutoPay (Rates as of 10/25/2022. Rates vary by loan purpose.)
7.99% – 23.43% (with all discounts)
Frequently Asked Questions
Yes, your credit score has a significant impact on your rate. Generally, the higher your credit score, the better rate you will get.
Different lenders require different minimum credit scores for borrowers to qualify for a personal loan. Some lenders have no minimums, while others only offer low rates to borrowers with excellent credit histories.
You can use a personal loan for almost any purpose you can think of, although it depends on the lender. Some common uses include:
Not all available reasons are listed here, and you should contact your individual lender to ask what choices they offer.
Personal loans are not suitable for all situations or for all people. It can sometimes be difficult to qualify, with strict credit score requirements. Personal loans can also carry high interest rates, which could mean there are better options.
For larger purchases that don’t fit within a credit limit, a personal loan might be the right option. It’s worth calculating the interest you’ll pay and carefully considering options like a secured loan to lower the interest rate.