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The average personal loan interest rate for consumers with good credit (690 to 719 credit score) is 14.84%, according to aggregate, anonymized offer data from users who pre-qualified for a personal loan through NerdWallet.
Like home and other consumer loans, personal loan annual percentage rates are currently higher than usual. But many factors determine your rate, including shifts in the economy, the type of lender you apply with and your credit profile.
» MORE: Compare the best personal loan rates
Here are current average personal loan rates, plus more information about how lenders decide your rate.
Average online personal loan rates
Borrower credit rating | Score range | Estimated APR |
Excellent | 720-850. | 12.64% |
Good | 690-719. | 14.84% |
Fair | 630-689. | 18.69%. |
Bad | 300-629. | 21.74%. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from March 1, 2024, through March 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.
APR ranges for online lenders
Here are APR ranges on loans from online lenders that NerdWallet reviews and rates.
Lender | APR range |
|---|---|
Achieve | 8.99% - 35.99%. |
Avant | 9.95% - 35.99%. |
Best Egg | 8.99% - 35.99%. |
Happy Money | 11.72% - 17.99%. |
Laurel Road | 9.49% - 24.25%. |
LendingClub | 8.98% - 35.99%. |
LendingPoint | 7.99% - 35.99%. |
LightStream | 6.99% - 25.49%. |
Mariner Finance | 15.49% - 35.99%. |
OneMain Financial | 18.00% - 35.99%. |
Oportun | 29.00% - 35.95%. |
Prosper | 8.99% - 35.99%. |
Reach | 14.30% - 35.99%. |
Rocket Loans | 9.12% - 29.99%. |
SoFi | 8.99% - 29.99%. |
Universal Credit | 11.69% - 35.99%. |
Upgrade | 8.49% - 35.99%. |
Upstart | 7.80% - 35.99%. |
Zable | 12.95% - 35.99%. |
» MORE: Best online loans
Average bank personal loan rates
In February 2024, the average APR on a two-year loan from a commercial bank was 12.49%, according to the Federal Reserve.
APR ranges for bank lenders
Here are APR ranges on loans from banks that NerdWallet reviews and rates.
Lender | APR range |
|---|---|
American Express | 5.91% - 17.97%. |
Axos | 11.29% - 21.34%. |
Citibank | 10.49% - 19.49%. |
Discover | 7.99% - 24.99%. |
PNC | 7.49% - 30.49%. |
Santander | 6.99% - 24.99%. |
TD Bank | 8.99% - 23.99%. |
Truist | 8.19% - 17.24%. |
USAA | 9.34% - 17.74%. |
U.S. Bank | 8.24% - 21.49%. |
Wells Fargo | 7.49% - 23.74%. |
» MORE: Best bank loans
Average credit union personal loan rates
In December 2023, the average APR on a three-year loan from a credit union was 10.78%, according to the National Credit Union Administration.
APR ranges for credit union lenders
Here are APR ranges on loans from credit unions that NerdWallet reviews and rates.
Lender | APR range |
|---|---|
Alliant | 11.79% - 29.49%. |
First Tech | 8.99% - 18.00%. |
Navy Federal | 7.49% - 18.00%. |
PenFed | 7.99% - 17.99%. |
» MORE: Learn the benefits of credit union loans
Are current personal loan rates high?
Overall, personal loan rates are the highest they’ve been in years. Commercial bank loan rates are at a high not seen since before the Great Recession, according to Fed data.
Unlike mortgages, personal loans aren’t directly affected by occasional, incremental changes in the Federal Funds rate — lenders can tolerate those hikes without increasing their rates.
However, persistently rising rates coupled with recession fears prompted lenders to raise their rates in late 2022 and early 2023. Forecasters continue to debate the likelihood of a recession in 2024, and lenders generally don’t lower rates when the economic outlook is so uncertain.
Though Federal Reserve officials have indicated they intend to lower the Fed rate in 2024, which could aid in lowering personal loan interest rates, no cuts have been made as of April.
Average online personal loan rates over time
Average bank personal loan rates over time
Average credit union personal loan rates over time
🤓Nerdy Tip
Rates are high for most types of financing right now, including credit cards and mortgages. Compare personal loans and alternatives, like 0% APR credit cards and home equity financing, to find the most affordable one.
Why lenders charge different personal loan rates
Most personal loans are unsecured and don’t require collateral to secure the loan. Instead, lenders use borrowers’ financial and credit profiles to make approval decisions and determine their rates. Most lenders tailor their APR ranges to the type of borrower they want to attract.
Lenders that accept good- or excellent-credit borrowers may charge lower rates because those consumers’ credit reports show a strong history of repaying credit cards and other loans. Lenders that target mostly bad-credit consumers, with credit histories showing missed payments, may charge higher rates to make up for the added risk.
Online lenders: Online lenders often narrow their target borrower pool to a couple of credit segments — fair- and bad-credit borrowers, for example, or good- and excellent-credit borrowers — and price their loans accordingly.
Banks: Large banks usually work with good-credit borrowers and offer the lowest rates to existing customers because they know how those borrowers manage credit and debt and may see them as less risky.
Credit unions: Credit unions are an exception: They often accept fair- or bad-credit borrowers but charge relatively low rates. Federal credit unions cap personal loan APRs at 18%. Because they work exclusively with their members, credit unions are able to consider the borrower’s membership history when determining their rate.
» MORE: Compare personal loans
How is your personal loan rate decided?
Here are four factors that are likely to affect your personal loan rate.
Credit score: Many lenders set minimum credit score requirements and may publish this information on their websites. This can help you rule out lenders with credit score requirements well above or below yours.
Payment history: Your repayment history toward other loans and credit cards is a top factor that lenders use to determine your rate. A long history of on-time payments to multiple creditors will work in your favor, while a history of missed and late payments may contribute to a higher rate.
Income: Most lenders like to see that you have at least enough money to make monthly loan payments and cover your other bills. Having extra cushion in your budget each month may show the lender that you’re a low-risk borrower and get you a lower rate.
Debt-to-income ratio (DTI): Your DTI is the percentage of your monthly income that goes toward other debts, such as car, student or mortgage loan payments. Lenders try to avoid providing loans that will overextend borrowers’ budgets, so many like to see a DTI at or below 50%, but lower is better.
» MORE: Personal loan requirements
Pre-qualify to compare offers
Lenders don’t usually divulge their underwriting techniques, but many major banks, credit unions and online lenders offer pre-qualification. This process allows you to check your potential loan amount, rate and repayment term without a hard credit pull.
