Personal loan interest rates remain unchanged from last week as of Wednesday, January 19th at 10.28 percent. Bankrate conducts a weekly survey of large lenders and monitors personal loan interest rates week over week, tracking any changes. The national average personal loan interest week has remained steady throughout December 2021, moving up from 10.27 percent to 10.28 percent in the first two weeks of 2022.
Comparing top personal loan rates
While personal loan interest rates have remained stable on average, different lenders provide different rates and overall experiences. Below are the rates of some of the best personal loan lenders of 2022. These lenders scored well in the 2022 Bankrate Awards, each winning a superlative category.
|Lender||APR||Loan amount||Minimum credit score||Bankrate superlative|
|LightStream||4.98%||$5,000-$100,000||700||Best for home improvement and debt consolidation|
|Marcus by Goldman Sachs||6.99%||$3,500-$40,000||660||Best online lender|
|TD Bank||6.99%||$2,000-$50,000||660||Best from a bank|
|Upstart||8.94%||$1,000-$50,000||None||Best for borrowers with bad credit|
|Best Egg||5.99%||$2,000-$50,000||640||Best for borrowers with fair credit|
|Figure||5.75%||$5,000-$50,000||670||Best for borrowers with good credit|
|Axos||6.49%||$5,000-$50,000||720||Best for borrowers with excellent credit|
Personal loan rates by credit score
The interest rates you are eligible to receive depend on your overall credit health. Below are the average interest rates for borrowers ranging from excellent to bad credit, based on Bankrate data.
|Credit score||Average loan interest rate|
How to compare personal loan rates
When applying for a personal loan, there are many factors to consider. Here are some of the things you should think about before choosing a personal loan lender:
- Comparing interest rates and fees: It is important to compare lender interest rates, but you must keep in mind that the lowest advertised rate is likely not what you will receive. The interest rate you qualify for depends on your credit health and other approval requirements. You should also factor in any fees that will affect the overall cost of your loan.
- Prequalify if possible: Many lenders allow borrowers to prequalify for loans, allowing you to submit your financial details and find out the exact rates you qualify for. Knowing your exact quote from a lender will help you decide if it is the best fit for you.
- Consider the purpose of your loan: Every lender is different, and the lender that is right for you depends on the purpose of your loan and your specific needs. Personal loans have a wide range of purposes, from debt consolidation to funding for big purchases such as weddings and vacations. How you intend to use your loan will impact which lender is right for you.
- Consider loan amounts and repayment options: The amount of money you need to borrow could limit your choices of lenders, as different lenders allow different borrowing ranges and repayment term options. If you need to borrow a large sum of money, you may want to find a lender with long repayment terms and a wide loan amount range.
- Sign up for autopay: Some lenders provide an interest rate discount for borrowers who enroll in autopay.
- Choose a shorter repayment period: The longer your repayment period, the higher your interest rate is likely to be. If you are financially able to pay the loan back in a shorter period of time, your interest rate will likely be less.
- Improve your credit score before applying: The better your credit score, the lower your personal loan interest rate is likely to be. Check here for tips on how to improve your credit score.
- Get a co-signer with good credit: Some lenders allow you to borrow loans with a co-signer. If you co-sign a loan with someone who has good credit, you have a better chance of receiving lower rates.
How to get a lower personal loan rate
You can do a few things to help you get the lowest personal loan rate possible: