What is the average personal loan rate for October 2026?

Tracking average personal loan rates can help you benchmark your borrowing costs for major goals like consolidating credit cards, financing home renovations or covering emergencies. Because personal loans offer fixed monthly payments, they are a solid tool for eliminating credit card debt, provided your credit profile qualifies you for the lowest market pricing. 

The current personal loan interest rate index is 12.53%.

— Bankrate Monitor data for September 23, 2026

If your priority is minimizing borrowing costs, it’s also important to track how the lowest available rates are trending. Borrowers with excellent credit can often access financing that undercuts standard home equity or HELOC pricing, provided they know where to look. Comparing national rates against these rock-bottom options gives you the information you need to make the best decision for your finances.

Average personal loan rates in 2026

According to personal loan Bankrate Monitor data, as of September 23, 2026, the average personal loan rate is 12.53% for customers with a 700 FICO score, $5,000 loan amount and three-year repayment term. To compare, the average credit card interest rate is close to 20%, according to Bankrate’s data. 

The Bankrate Monitor survey collects rates from the 10 largest banks and thrifts in the 10 largest U.S. markets, assuming you don’t already have a relationship with an institution and aren’t set up for automatic payments.

Average lowest personal loan rates

If you have excellent credit, you may qualify for a rate significantly lower than the overall Bankrate Monitor average.

How interest rates affect your cost

Securing a competitive personal loan can shave thousands of dollars off your total borrowing costs, but you won’t find those savings by accepting your first offer. To keep more money in your pocket, shop around and compare rates with multiple lenders.

Your credit score plays a major role in what rates you can expect. For instance, if you have excellent credit and stable income, you might end up paying just a bit over 6% in interest. On the other hand, with bad credit, you could get an interest rate as high as 36%.

This table gives an example of how interest compares for a $15,000 loan with a 4-year term.

The difference between a 15% personal loan rate and a 6% rate is only about $60 a month, but you’ll pay over $3,000 less over the life of the loan. But if your rate is 35%, which is more likely if you have bad credit, you’ll pay $232 more monthly — or an extra $11,150 over the life of the loan.

Average personal loan interest rate by online lender

The lowest available rate among Bankrate-featured lenders is under 6%, while the highest is almost 36%.

One thing to watch out for when it comes to online lenders is the origination fee. It can be as high as 12% of your loan amount and is subtracted from any loan proceeds before you receive your money.

That’s why it’s important to review the annual percentage rate (APR) on any personal loan offers you receive. The number reflects the full cost of your loan, including fees. Try to choose online lenders that don’t charge origination fees, if you qualify. 

APR ranges at Bankrate-reviewed online lenders

Average personal loan interest rates by banks

According to recent data from the NCAU (National Credit Union Administration), the average finance rate for personal loans offered by commercial banks was 12% for a three-year term at the end of 2025.

You’ll typically need a high credit score and a solid work history to get approved for a personal loan at a bank. However, banks may offer more competitive rates for loans secured by a portion of your savings deposits. 

APR ranges of Bankrate-reviewed banks

Average personal loan interest rates by credit union

According to NCUA data, the national average rate for a three-year personal loan at a credit union was just 10.64% in 2025’s fourth quarter. Average maximum rates are significantly lower than banks and online lenders — in fact, at federal credit unions they are legally capped at 18% — making credit unions worth researching if you’re eligible for membership.

A recent personal loan shopping report by a Bankrate expert found that credit unions tend to offer slightly lower rates for longer terms. You also typically won’t pay any fees, which keeps your APR and quoted rate the same and means you’ll take home all the money you borrow. 

APR ranges of Bankrate-reviewed credit unions

How to get the lowest available personal loan rates

Personal loan average rates give you an idea of the rates paid by the average consumer. You’ll typically find lower average rates at banks and credit unions compared to online lenders and marketplace lending sites like Bankrate. However, some online lenders offer very low rates for borrowers with excellent credit who qualify for a short term (usually three years).

There are a few steps you can take to be in the right place at right time to get the lowest personal loan rates:

1. Pay down other debt and maintain good financial habits. Lenders look closely at your debt-to-income (DTI) ratio to evaluate your ability to take on new monthly installments. Clearing out small credit card balances, pausing heaving spending and keeping your credit utilization low protects your credit score from temporary dips and proves to lenders you can responsibly manage your finances. 
2. Add a joint borrower. A co-borrower with excellent credit and generous income lowers the creditor’s risk and may help you gain access to better interest rates than you would have on your own. 
3. Sign up for automatic payments. Most online lenders offer a discount, typically 0.25% to 0.50% off your quote, if you enroll in automatic payments with your checking account. 
4. Choose a short repayment term. Selecting a shorter repayment term, such as a three-year term over a five-year, will make your monthly payments higher, but save you in total interest costs over the lifetime of the loan. 
5. Apply for preapproval. Preapprovals are soft credit pulls that won’t hurt your credit score. Using a marketplace comparison tool to check your preapproval odds will allow you to compare rates from multiple lenders simultaneously, helping you find the lowest APR.

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Bottom line

You’ll have a better shot at qualifying for low-interest rate personal loans if your finances are in good shape. Your credit score plays an especially important role in the rates you can qualify for: you could get a 6% rate with excellent credit or a 36% rate with bad credit on the same amount. 

The type of lender you’re working with also matters. For example, online lenders can be highly competitive, meaning you can get a low rate. On the other hand, if you’re borrowing from a credit union, you get the advantage of your rate being capped at 18%. Shop around and get preapproved with several lenders to ensure you get the best deal.

Frequently asked questions

• Is there a difference between interest rate and APR?

  Yes, there is a difference and is why you should never pick a loan based on the interest rate alone. The interest rate is simply the baseline amount a lender charges you to borrow money. It is a flat cost that dictates what your basic monthly payment looks like.

  The APR is the actual cost of the loan. It includes your interest rate plus any mandatory upfront fees rolled out over a year, including the origination fee which can be as high as 12%. Because it accounts for these hidden out-of-pocket costs, your APR will almost always be higher than your base interest rate.

• What credit score is needed for a personal loan?

  Since each lender sets its own eligibility requirements, the credit score you’ll need to qualify varies by lender.  Most lenders require a minimum score of around 580 to qualify, but of course you’d be quoted less competitive rates and terms. If your credit score is in the 800-plus range, you’ll have the best chance at securing a lender’s lowest advertised rates, the largest loan amounts and the most flexible repayment terms. However, you might still qualify for a lender’s best personal loan rates or terms with a FICO score of 740 or higher.

• How does your credit score affect your personal loan rate?

  Your credit score acts as a risk gauge for lenders. The lower your score, the higher the risk that you might default on the loan, and the more a lender will charge you to protect their investment.

  While a prime borrower with an excellent score (740+) might land an APR near 6%, a subprime borrower with a poor score (under 580) looking at the exact same loan amount will likely see APRs rocket up to 36% — the legal maximum for most traditional personal loans.