Personal loan interest rates currently range from about 5% to 36%. The actual rate you receive depends on multiple factors, such as your credit score, annual income, and debt ratios.
By Dori Zinn
Last updated: January 20, 2020
Overview: SoFi, a digital lender, offers products ranging from personal loans to student loan refinancing, private student loans, home loans, investing and various types of insurance. It’s working on becoming an all-encompassing place to save, spend and manage your money.
Perks: SoFi offers a wide range of benefits that go beyond just funding your personal loan. They offer customers an autopay discount and unemployment protection in case you lose your job and can’t afford to repay your loan. They also offer career counseling and a referral bonus if a qualifying friend signs up. Members get personalized financial planning and aren’t charged any fees. Loans, which are fee free, range from $5,000 to $100,000 and must be repaid in two to seven years. Variable interest rates on personal loans are capped at 14.95 percent, while other lenders may charge as much as 36 percent. Fixed-rate loans range from 5.99 percent APR to 20.01 percent APR.
What to watch out for: You’ll need to have a solid credit score -- at least 680 -- to take advantage of these perks.
| Lender | SoFi |
|---|---|
| Bankrate Rating | 4.1 / 5.0 |
| Min. Credit Score | 680 |
| Est. APR | 6.20% - 15.24% (with autopay) |
| Loan Amount | $5,000 - $100,000 |
| Term Lengths | 2 to 7 years |
| Min. Annual Income | None |
| Fees | None |
Read Bankrate's expert SoFi Review
Overview: LightStream, a division of Truist, offers loans for practically any occasion and generous repayment terms. They offer auto loans, home improvement loans, loans for a medical emergency, a family need and countless other reasons you might need to borrow money.
Perks: Repayment terms range from two to 12 years, which means you can take longer to pay off your loan and benefit from lower monthly payments. Maximum loan amounts go up to $100,000, which is good if you need to borrow more money. There are no fees, no prepayment penalties and you get a discount on your interest rate when you sign up for autopay.
What to watch out for: You’ll need to prove you have a few years’ worth of credit history with many different account types to qualify. Delinquencies, default and late payments could hurt your eligibility chances.
| Lender | Lightstream |
|---|---|
| Bankrate Rating | 4.0 / 5.0 |
| Min. Credit Score | 660 |
| Est. APR | 4.99%-16.79% (with autopay) |
| Loan Amount | $5,000 – $100,000 |
| Term Lengths | 2 to 12 years |
| Min. Annual Income | None |
| Fees | None |
Read Bankrate's expert Lightstream Review
Overview: Avant specializes in lending to people with fair or poor credit. Not everyone has great credit, but that doesn’t mean they shouldn’t be able to have the chance to borrow a loan.
Perks: Good option for those who have a credit score of at least 580, although most customers have a score between 600 and 700. Get your money within a day after getting approved and take advantage of fixed interest rates. Loans start as low as $2,000, which is helpful if you don’t need to borrow a lot of money, but still need access to cash. Terms go as high as five years. This is helpful if you need to have low monthly payments to ensure you make them on time.
What to watch out for: Interest rates start at 9.95 percent APR and can go as high as 35.99 percent APR, which is higher compared to other lenders. Avant also charges a 4.75 percent administration fee and late fees can apply if you don’t make a payment on time.
| Lender | Avant |
|---|---|
| Bankrate Rating | 4.0 / 5.0 |
| Min. Credit Score | 580 |
| Est. APR | 9.95% - 35.99% |
| Loan Amount | $2,000 - $35,000 |
| Term Lengths | 2 to 5 years |
| Min. Annual Income | None |
| Fees | Administration fee, late fee |
Read Bankrate's expert Avant Review
Overview: A debt consolidation loan is a loan that is used to pay off multiple outstanding debts. You’ll borrow money with one loan to pay off many smaller loans or credit cards that were charging much higher interest rates. Then you make one monthly payment to your new loan. Marcus offers debt consolidation loans to simplify your debt, making it easier to pay so you don’t fall behind.
Perks: Interest rates start as low as 6.99 percent and you can borrow upwards of $40,000 to pay off outstanding debt. Marcus doesn’t charge any fees, ever. You also have the chance to change your monthly due date up to three times during the life of the loan based on what works best for your finances.
What to watch out for: You’ll need a credit score of at least 660 to qualify for a Marcus personal loan. No co-signers are allowed.
| Lender | Marcus by Goldman Sachs |
|---|---|
| Bankrate Rating | 3.7 / 5.0 |
| Min. Credit Score | 660 |
| Est. APR | 6.99% - 28.99% |
| Loan Amount | $3,500 - $40,000 |
| Term Lengths | 3 to 6 years |
| Min. Annual Income | None |
| Fees | None |
Read Bankrate's expert Marcus Review
Overview: Best Egg offers personal loans for a variety of purposes, whether it’s debt consolidation, credit card refinancing, family needs and home improvements.
Perks: Best Egg offers loans starting as low as $2,000, and you can borrow as much as $35,000. Interest rates start as low as 5.99 percent for those with the best credit. There are no prepayment penalties for paying off your loan early.
What to watch out for: Origination fees range from 0.99 percent to 5.99 percent, and $15 late payment fees are charged within three days of a missed payment.
| Lender | Best Egg |
|---|---|
| Bankrate Rating | 3.7 / 5.0 |
| Min. Credit Score | 640 |
| Est. APR | 5.99% - 29.99% |
| Loan Amount | $2,000 - $35,000 |
| Term Lengths | 3 to 5 years |
| Min. Annual Income | None |
| Fees | Origination fee: 0.99 percent to 5.99 percent of the loan amount, Late fee: $15 |
Read Bankrate's expert Best Egg Review
Overview: You can get your funds within a day with an Upgrade loan. Loan amounts range from $1,000 to $50,000. Use your personal loan for anything: debt consolidation, home improvement or covering a major expense.
Perks: Terms from three to six years let you pay off your loan on a schedule that’s best for your budget. Interest rates start at 5.99 percent as long as you have strong credit to qualify for it.
What to watch out for: The 1.5 to 6 percent origination fee. There’s also a $10 failed payment or late fee if you don’t pay within 15 days of your due date.
| Lender | Upgrade |
|---|---|
| Bankrate Rating | 4.1 / 5.0 |
| Min. Credit Score | 620 |
| Est. APR | 5.99% - 35.89% |
| Loan Amount | $1,000 - $50,000 |
| Term Lengths | 3 or 5 years |
| Min. Annual Income | None |
| Fees | Origination fee: 1.5 percent to 6 percent of the loan amount, Late fee: Up to $10 |
Read Bankrate's expert Upgrade Review
Overview: Payoff loans are specifically geared toward borrowers who want to pay off high-interest credit card debt. If you’re struggling to get out of credit card debt and continue to face mounting interest rates, you can use a Payoff loan to get rid of it, and then make fixed monthly payments to your one Payoff loan.
Perks: You have access to your free FICO score, updated monthly. There’s no penalty for paying off your loan early or making additional payments whenever you want. There are no late payment fees or fees if you have a returned check.
What to watch out for: You’ll need to have a credit score of at least 640 and three years of established credit to qualify. Loans get funded between two and five business days after approval. There’s also an origination fee of 0 to 5 percent.
| Lender | Payoff |
|---|---|
| Bankrate Rating | 3.6 / 5.0 |
| Min. Credit Score | 640 |
| Est. APR | 5.99% - 24.99% |
| Loan Amount | $5,000 - $35,000 |
| Term Lengths | 2 to 5 years |
| Min. Annual Income | None |
| Fees | Origination fee |
Read Bankrate's expert Payoff Review
Overiew: While Upstart has minimum credit score requirements, they evaluate more than just your credit score when you apply. The lender looks at your education, your job history and some credit score factors when determining your eligibility.
Perks: You can apply even if you don’t have a long credit history. If you’re relatively new to borrowing money, you might be eligible. There’s no prepayment penalty for paying off your loan early, and you can borrow as little as $1,000.
What to watch our for: Co-signers aren’t allowed and there’s a late fee of 5 percent or $15, whichever is less.
| Lender | Upstart |
|---|---|
| Bankrate Rating | 3.8 / 5.0 |
| Min. Credit Score | 620 |
| Est. APR | 6.46% - 35.99% |
| Loan Amount | $1,000 - $50,000 |
| Term Lengths | 3 and 5 years |
| Min. Annual Income | None |
| Fees | Late fee of 5% or $15 |
Read Bankrate's expert Upstart Review
Overview: If you’re struggling to find a lender who will let you borrow, you might need to enlist the help of a co-signer. Unfortunately, not every lender offers the option to do this. LendingClub lets you apply with a co-signer or a joint application.
Perks: Use a co-signer to qualify for a loan you wouldn’t otherwise have gotten. Or, use a co-signer to qualify for the lowest interest rate available. At LendingClub, rates start at 6.95 percent. There’s a 15-day grace period, in case you can’t pay your loan the day it’s due.
What to watch out for: It takes around four days to receive your funds. There’s also an origination fee ranging from 1 to 6 percent.
| Lender | LendingClub |
|---|---|
| Bankrate Rating | 3.3 / 5.0 |
| Min. Credit Score | 600 |
| Est. APR | 6.95% - 35.89% |
| Loan Amount | $1,000 - $50,000 |
| Term Lengths | 3 and 5 years |
| Min. Annual Income | None |
| Fees | Origination fee 1% to 6% |
Read Bankrate's expert LendingClub Review
Overview: You don’t need to go with a traditional bank or online lender to find the best deals. Credit unions also offer personal loans. Try a credit union near you or apply through PenFed. While PenFed is geared toward military and service members, there are other ways to become a member. But you will need to make a donation to a selection of charities before getting approved.
Perks: APRs start at 6.49 percent, and you can get a loan as low as $500.
What to watch out for: You’ll need to become a member of PenFed before applying for a personal loan. You can’t see if you prequalify before applying, which means you could get denied and still have the hard inquiry go on your credit report.
| Lender | PenFed |
|---|---|
| Min. Credit Score | Mid-600s |
| Est. APR | 6.49% - 17.99% |
| Loan Amount | $500 - $25,000 |
| Term Lengths | 1 to 5 years |
| Min. Annual Income | None |
| Fees | None |
Overview: TD Bank has 1,300 locations across the East Coast, and they’re open seven days a week.
Perks: While getting an online loan is usually fast and easy, it’s not always the most convenient option for everyone. If you need to visit a branch to talk to a human about borrowing a personal loan, try TD Bank. You can apply online, over the phone or at your local branch. Their highest APR is 18.99 percent, while other lenders go as high as 35.99 percent. They also offer a 0.25 percent autopay discount if you use your TD Bank personal checking or savings account to make payments.
What to watch out for: Late fee of 5 percent or $10, whichever is less.
| Lender | TD Bank |
|---|---|
| Bankrate Rating | 4.2 / 5.0 |
| Min. Credit Score | 660 |
| Est. APR | 6.99% - 18.99% |
| Loan Amount | $2,000 - $50,000 |
| Term Lengths | 1 to 5 years |
| Min. Annual Income | None |
| Fees | None |
Read Bankrate's expert TD Bank Review
Overview: Sometimes you just need to see someone face to face. PNC Bank has 2,400 locations across 37 states.
Perks: There are no application, origination or prepayment fees. You can apply online, over the phone or in person. Minimum loan amounts start at $1,000 and you can have repayment terms as short as six months. You’re also allowed to apply with a co-applicant, which can help you qualify if you wouldn’t on your own.
What to watch out for: PNC products and features vary by location. When you visit PNC Bank online, you’re required to enter your ZIP code before seeing their offers. That means you might not have the same benefits or products as others that live somewhere else. APRs also vary by location, but you might get one as low as 5.74 percent. The more money you borrow, the lower your APR. There’s no prequalification option, which means you’ll face a hard inquiry when you apply, even if you’re rejected.
| Lender | PNC Bank |
|---|---|
| Bankrate Rating | 4.1 / 5.0 |
| Min. Credit Score | 680 |
| Est. APR | 5.74% - 11.24% |
| Loan Amount | $1,000 - $35,000 |
| Term Lengths | 6 months to 5 years |
| Min. Annual Income | None |
| Fees | Late payment of $10 or 40%, whichever is higher |
Read Bankrate's expert PNC Bank Review
| Lender |
Est. APR
|
Loan Term
|
Min. Loan Amount
|
Max. Loan Amount
|
|---|---|---|---|---|
| SoFi |
6.20% - 15.24% (with autopay)
|
2 to 7 years
|
$5,000
|
$100,000
|
| Lightstream |
4.99%-16.79% (with autopay)
|
2 to 12 years
|
$5,000
|
$100,000
|
| Avant |
9.95%-35.99%
|
2 to 5 years
|
$2,000
|
$35,000
|
| Marcus by Goldman Sachs |
6.99%-28.99%
|
3 to 6 years
|
$3,500
|
$40,000
|
| Best Egg |
5.99% - 29.99%
|
3 to 5 years
|
$2,000
|
$35,000
|
| Upgrade |
5.99% - 35.89%
|
3 or 5 years
|
$1,000
|
$50,000
|
| Payoff |
5.99% - 24.99%
|
2 to 5 years
|
$5,000
|
$35,000
|
| Upstart |
6.46% - 35.99%
|
3 and 5 years
|
$1,000
|
$50,000
|
| LendingClub |
6.95% - 35.89%
|
3 and 5 years
|
$1,000
|
$50,000
|
| PenFed |
6.49% - 17.99%
|
1 to 5 years
|
$500
|
$25,000
|
| TD Bank |
6.99% - 18.99%
|
1 to 5 years
|
$2,000
|
$50,000
|
| PNC Bank |
5.74% - 11.24%
|
6 months to 5 years
|
$1,000
|
$35,000
|
Personal loans are shorter-term loans consumers can receive from banks, credit unions or private lenders, like online marketplace lenders and non-bank peer-to-peer lenders. The loan funds can be used for just about any purpose, such as paying off other debt, financing a home renovation or paying for family needs, like a wedding or adoption.
Borrowers receive a single lump sum that’s repaid over a number of years. Most personal loans range from 24 months to 60 months, but some can go as high as 72 months. The typical personal loan is repaid in monthly installments, similar to a car loan or home mortgage.
Personal loans are typically unsecured, meaning they are not backed by collateral such as a car, house or other assets.
If you need cash fast, these loans are a good alternative because the approval process is fairly quick and you can also receive your lump sum sooner than obtaining a home equity line of credit.
Personal loan rates currently range from about 5% to 36%, depending on your credit score. As of Jan. 22, 2020, the average personal loan interest rate is 11.44%.
The average personal loan interest rates range from 10.3% to 12.5% for “excellent” credit scores ranging from 720-850, 13.5% to 15.5% for "good" credit scores of 690-719, 17.8% to 19.9% for "average" credit scores of 630-689 and 28.5% to 32.0% for “poor” credit scores of 300-629.
The better your credit score, the more likely you are to qualify for a personal loan with the lowest interest rate available. Compare personal loan offers to see what you are eligible for before applying for a personal loan.
| Credit Rating / Score Range | Average personal loan interest rate |
|---|---|
| Excellent (720 - 850) | 10.3% - 12.5% |
| Good (690 to 719) | 13.5% - 15.5% |
| Average (630 to 689) | 17.8% - 19.9% |
| Bad (300 to 629) | 28.5% - 32.0% |
Rates as of 1/20/2019
Some of the most common reasons people consider a personal loan are:
How to get a personal loan in 8 steps:
APR stands for Annual Percentage Rate. APR refers to the extra amount borrowers pay in interest and fees on an annual basis. Lenders calculate APR on a yearly basis, but borrowers are most often responsible for paying APR on a monthly basis.
For more detail on how APR can affect your monthly payments, check out our personal loan calculator.
Secured loans are backed by a piece of the borrower’s property as collateral, typically a vehicle or house. Because the borrower stands to lose personal property if they default, secured loans tend to have lower interest rates.
Unsecured loans are not backed by collateral, but instead by the borrower’s creditworthiness. Because the lender takes on more of a risk with an unsecured loan, interest rates tend to be higher. Lenders also require that borrowers seeking an unsecured loan have a higher-than-average credit score.
A repayment term refers to the length of time borrowers have to repay their loan. A personal loan's repayment term can vary between one and ten years, depending on the lender.
Because personal loans are often unsecured, they may come with higher APRs. With unsecured loans, lenders tend to pay extra attention to a borrower's credit score.
The lower a borrower's credit score is, the more they'll have to pay in APR. Lower credit scores can lead to APRs in the double digits.
Loan rates differ by lender, but often opting for a secured loan can help lower APR, even for someone with bad credit. In some cases, secured loans can offer up to 8% less in APR than unsecured loans.
Depending on the loan and the lender, you may have a choice between fixed rate (which stays the same over the life of the loan) or variable (which can rise or fall depending on changes in the market).
The interest on a variable rate loan often starts low but may increase over time. The terms of the loan agreement will specify how often the lender is allowed to raise the interest rate, and some loans cap the maximum rate at a certain percentage. By contrast, the payments and interest charges on a fixed-rate loan will remain the same.
Base your decision on whether you prefer the stability of a fixed rate or the possibility of saving on interest with a variable rate.
The personal loan landscape has changed dramatically in ways that make it more efficient for both borrowers and lenders, McBride says.
“Credit availability is better, rates are more competitive and the quick turnaround is a sharp contrast from getting a home equity loan instead,” he says.
Personal loans that are used to pay off higher interest debt can be a great tool to save money on interest over time, Triggs adds.
“Avoiding the pitfalls of getting back into credit card debt, which is one of the biggest issues for consumers who struggle paying their personal loans, is critical to meeting your goal of paying off your debt in a shorter amount of time,” Triggs says. “Remember, you can never borrow your way out of debt. Moving debt from one place to another can save you money, but only your consistent payments and dedication towards your goal will get you out of debt.”