Personal loans have become more popular in the last decade due to consumers looking to consolidate debt and find lower interest rates than credit cards. According to a Bankrate study, the average personal loan interest rate is 11.93 percent as of Feb. 21, 2024. However, the rate you receive could be higher or lower, depending on your unique financial circumstances.

Personal loan rates vary based on creditworthiness, the lender and the borrower’s financial stability.

Average personal loan interest rates by credit score

Consumers with good or excellent credit may find average loan interest rates as low as 13.5 percent, whereas those with average or poor credit will pay a considerably higher average rate. Based on Bankrate research, the following chart outlines the average interest consumers pay by credit score.

Credit score Average loan interest rate
720–850 10.73%-12.50%
690–719 13.50%-15.50%
630–689 17.80%-19.90%
300–629 28.50%-32.00%

However, some borrowers will get much lower interest rates because these are averages.

Average loan rates by lender type

While local banks and credit unions with brick-and-mortar stores promise competitive personal loan products, online lenders often offer loans with lower starting interest rates for consumers with excellent credit. Consumers who want to find an affordable loan product to suit their needs should compare their bank or credit union’s offerings with any online lenders they may be familiar with.

Rates are accurate as of Feb. 1, 2024. Check with the lender for any updated details.

Average personal loan rates by online lender

Online lender
Loan interest rates
Achieve 7.99%-35.99%
Avant 9.95%-35.99%
Best Egg 8.99%-35.99%
Earnest Varies by lender
Happy Money 11.72%-17.99%
LendingClub 9.57%-35.99%
LendingPoint 7.99%-35.99%
LightStream 7.49%-25.49% with Autopay
OneMain Financial 18.00%-35.99%
Prosper 8.99%-35.99%
SoFi 8.99%-29.49% with Autopay
Upgrade 8.49%-35.99% with Autopay
Upstart 7.80%-35.99%

Average personal loan rates by banks

Bank Loan interest rates
Citi 10.49%-19.49% APR
Santander Bank 7.99%-24.99% with ePay
U.S. Bank 8.74%-24.99% with autopay
Wells Fargo 7.49%-23.24% with autopay

Average personal loan rates by credit union

Credit union
Loan interest rates
PenFed Credit Union 7.99%-17.99% APR
Members 1st Federal Credit Union Starting at 12.39%
Navy Federal Credit Union 8.99%-18.00%
USAA 10.14%-18.51%

Other factors that affect your personal loan rate

While your credit score plays a significant role in the average personal loan interest rate you can qualify for, lenders consider other details to gauge your creditworthiness. These include:

  • Your income is used to determine how much you can borrow.
  • Your debt-to-income ratio helps lenders determine how much debt you already have compared to your income.
  • Your employment status helps lenders feel confident about your ability to repay your loan.
  • Your loan term can impact your rate: short-term personal loans tend to have higher interest rates than long-term personal loans.

Some lenders set minimum standards for their loans, such as a minimum income amount or a minimum credit score. You may also be unable to get approved for a personal loan if you have a recent bankruptcy on your credit report or an open collections case. Before you apply for a personal loan, it can help to look over your lender’s FAQ pages to see if you will be able to qualify.

The documentation you can expect to provide when you apply for a personal loan includes photo identification, employer and income verification, like pay stubs and bank statements, and proof of address.

What is considered a good interest rate on a personal loan?

A good interest rate on a personal loan can be different for everyone. Generally speaking, a good rate is below the average personal loan rate.

If your goal is qualifying for a good personal loan rate, or at least the best loan rate you can hope to qualify for based on your credit score, income and other factors.

The bottom line

Average personal loan interest rates can vary depending on your credit score and other factors, but you do have some control. Make sure to keep your credit score in the best shape possible and work on paying off debt to lower your debt-to-income ratio. By taking care of your financial health and shopping around to compare typical loan interest rates, you’ll have a personal loan that suits your budget and goals within reach.