What are current personal loan rates?

You can use a personal loan to cover nearly any expense. And if you qualify for a low interest rate, you’ll often pay less to borrow the money.

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as "Credible" below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.

A personal loan can help you cover virtually any expense. Whether you need a loan to consolidate debt, pay a medical bill, or fund a home improvement project, it might be a good time to borrow money when interest rates are low. Depending on your credit and finances, as well as the type of loan you choose, you may be able to save some money on interest charges and reduce your overall cost of borrowing. 

Visit Credible to see your prequalified personal loan rates from various lenders, all in one place.

What are current personal loan rates?

The chart below shows average prequalified personal loan rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender:


For the month of June 2022:

  • Rates on 3-year personal loans averaged 11.08%, down from 11.14% in May.
  • Rates on 5-year personal loans averaged 13.10%, down from 13.27% in May.

How has inflation impacted personal loan rates?

The current inflation rate in the U.S. is 8.26%. While it has slowed a bit, it’s still close to the highest it’s been in 40 years. Since inflation leads to higher prices on goods and services, the demand for credit increases, leading to higher interest rates for new personal loans and other financial products, like mortgages and credit cards. 

While this benefits lenders, it means that you’ll pay more to borrow money. If you have a current loan with a fixed interest rate, your payments won’t be affected. But if your loan has a variable rate, your payments could go up.

Credible makes it easy to compare personal loan rates from various lenders, without affecting your credit.

Average personal loan rates by credit score

Average personal loan rates can vary depending on your credit and other financial factors. The chart below shows average personal loan rates by credit score:


 In June, the average prequalified rate selected by borrowers was: 

  • 8.26% for borrowers with credit scores of 780 or above choosing a 3-year loan
  • 30.44% for borrowers with credit scores below 600 choosing a 5-year loan

How to get a lower personal loan interest rate

Fortunately, you can take steps to lock in a lower interest rate and potentially save hundreds or even thousands of dollars in interest on your personal loan, including: 

  • Increase your credit score. The higher your credit score, the lower rates you’ll qualify for. To improve your credit, check your credit report and dispute any errors, pay your bills on time, pay down debt, and don’t open new credit accounts unless you actually need them.
  • Choose a shorter repayment term. In general, shorter loan repayment terms come with lower interest rates. If your monthly budget allows for it, apply for a shorter term of two years instead of five years, for example.
  • Get a cosigner. A cosigner, which can be a family member or close friend with good credit, can help you land a lower interest rate. Just keep in mind that if you fail to make your loan payments, the cosigner will be responsible for them.
  • Shop around. Not all personal loans are created equal. Do your research and compare offers from several different lenders to find the most competitive rates.

With Credible, you can quickly and easily compare personal loan rates to find one that suits your needs.