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Best personal loan rates for June 2023

Jun 07, 2023

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PERSONAL LOANS

BEST LOANS FOR GENEROUS REPAYMENT TERMS

4.6

Bankrate Score
Est. APR
8.99- 24.99%
with Autopay
Loan amount
$5k- $100K
Term: 2-7 yrs*
Min credit score
Not disclosed
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PERSONAL LOANS

BEST FOR FAST FUNDING

4.7

Bankrate Score
Est. APR
8.49- 35.99%
with AutoPay
Loan amount
$1k- $50K
Term: 2-7 yrs
Min credit score
Not disclosed
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

BEST FOR LOW APRS

4.7

Bankrate Score
Est. APR
8.99- 35.99%
Loan amount
$2k- $50K
Term: 3-5 yrs
Min credit score
600
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PERSONAL LOANS

BEST FOR INTEREST RATE DISCOUNTS

4.6

Bankrate Score
Est. APR
7.99- 35.99%
Loan amount
$5k- $50K
Term: 2-5 yrs
Min credit score
620
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PERSONAL LOANS

BEST FOR SECURED LOANS

4.1

Bankrate Score
Est. APR
18.00- 35.99%
Loan amount
$1.5k- $20K
Term: 2-5 yrs
Min credit score
Not disclosed
See offersArrow Right

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PERSONAL LOANS

BEST LOAN FOR PEOPLE WITH BAD CREDIT

4.5

Bankrate Score
Est. APR
9.95- 35.99%
Loan amount
$2k- $35K
Term: 1-5 yrs
Min credit score
580
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PERSONAL LOANS

BEST LOAN FOR LITTLE CREDIT HISTORY

4.7

Bankrate Score
Est. APR
6.70- 35.99%
Loan amount
$1k- $50K
Term: 3-5 yrs
Min credit score
Not disclosed
See offersArrow Right

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PERSONAL LOANS

BEST OVERALL PERSONAL LOAN

4.7

Bankrate Score
Est. APR
8.99- 23.43%
with AutoPay
Loan amount
$5k- $100K
Term: 2-7 yrs
Min credit score
680
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST LOAN FOR FEW FEES

4.9

Bankrate Score
Est. APR
8.99- 21.99%
Loan amount
$1k- $35K
Term: 3-5 yrs
Min credit score
700
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST FOR SMALL LOAN

4.4

Bankrate Score
Est. APR
7.99- 35.99%
Loan amount
$2k- $36.5K
Term: 2-6 yrs
Min credit score
600
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST FOR JOINT APPLICATIONS

4.4

Bankrate Score
Est. APR
6.99- 35.99%
Loan amount
$2k- $50K
Term: 2-5 yrs
Min credit score
600
Read our reviewArrow Right

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PERSONAL LOANS

BEST LOAN FOR USING A CO-BORROWER

4.1

Bankrate Score
Est. APR
9.57- 36.00%
Loan amount
$1k- $40K
Term: 2-5 yrs
Min credit score
Not disclosed
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST LOAN FOR PAYING CREDIT CARD DEBT

4.6

Bankrate Score
Est. APR
11.25- 29.99%
Loan amount
$5k- $40K
Term: 2-5 yrs
Min credit score
640
Read our reviewArrow Right

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We helped over 421K people get prequalified loan offers last year. Let's find yours now.

How to compare personal loan lenders

It's always best to get quotes from a few lenders before applying for a personal loan so you can determine which has the best overall offerings for your situation. When comparing lenders, keep an eye on the following factors:

  1. Approval requirements. Every lender has its own threshold for approving potential borrowers, considering factors  like income, credit score and debt-to-income ratio. If you have below-average credit, look for lenders that utilize other approval criteria — like education and employment history — or allow co-signers.
  2. Interest rates. The lowest advertised rate is never guaranteed, so compare your prequalification offers. When comparing your potential interest rates, also incorporate any fees or penalties — origination fees or application fees can significantly add to the overall cost of your loan.
  3. Loan amounts. If you need a loan for something small, like a minor car repair, look for lenders that cater to lower amounts to avoid over borrowing. On the other side, if you need to make a big purchase you'll need to look for lenders that offer enough — and check that you can qualify for the full amount.
  4. Repayment options. Look for lenders that offer multiple repayment terms so you can choose the one that makes the most sense for your situation. Long repayment terms will decrease your monthly payment, but if you have a smaller loan, a shorter repayment term will cut back on the interest you pay overall.
  5. Unique features. Keep an eye out for lenders with any unique perks and restrictions. Also check that any lender you're considering will allow you to use your loan for the purpose you're intending.
  6. Customer service. Investigate a company's customer service options and read the company reviews on its Better Business Bureau and Trustpilot profiles to ensure you have the support you need as you navigate the application process and repayment. But also keep in mind that people are much more likely to leave negative reviews than positive, look for obvious negative trends but also how the company responds to them.

Compare personal loan rates in June 2023

Caret Down
LENDER CURRENT APR RANGE LOAN TERM LOAN AMOUNT BEST FOR
SoFi 8.99%-23.43% (with autopay) 2-7 years $5,000-$100,000 Overall personal loan
LightStream 8.99%-24.99%* with AutoPay 2-7 years $5,000-$100,000 Generous repayment terms
Avant 9.95%-35.99% 1-5 years $2,000-$35,000 People with bad credit
Best Egg 8.99%-35.99% 3-5 years $2,000-$50,000 Low APRs
Upgrade 8.49%-35.99% (with autopay) 2-7 years $1,000-$50,000 Fast funding
Happy Money 11.25%-29.99% 2 or 5 years $5,000-$40,000 Paying credit card debt
Upstart 6.70%-35.99% 3 or 5 years $1,000-$50,000 Little credit history
LendingClub 9.57%-36.00% 2-5 years $1,000-$40,000 Using a co-borrower
PenFed 7.74%-17.99% Up to 5 years $600-$50,000 Small loan amounts
TD Bank 8.99%-21.99% 3-5 years $2,000-$50,000 Few fees
PNC Bank Varies by ZIP code 6 months-5 years $1,000-$35,000 In-person banking
LENDER CURRENT APR RANGE LOAN TERM LOAN AMOUNT BEST FOR
LightStream 8.99%-24.99%* with AutoPay 2-7 years $5,000-$100,000 Generous repayment terms
Happy Money 10.50%-29.99% 2 or 5 years $5,000-$40,000 Paying credit card debt
Best Egg 8.99%-35.99% 3-5 years $2,000-$50,000 Low APRs
SoFi 8.99%-23.43% (with autopay) 2-7 years $5,000-$100,000 Unemployment protection
Achieve 7.99%-35.99% 2-5 years $5,000-$50,000 Quick approval
PenFed 7.74%-17.99% Up to 5 years $600-$50,000 Small loan amounts
Upstart 6.70%-35.99% 3 or 5 years $1,000-$50,000 Little credit history
LendingClub 9.57%-36.00% 2-5 years $1,000-$40,000 Using a co-borrower
Prosper 6.99%-35.99% 2-5 years $2,000-$50,000 No prepayment penalty
Upgrade 8.49%-35.99% (with autopay) 2-7 years $1,000-$50,000 Fast funding
TD Bank 8.99%-21.99% 3-5 years $2,000-$50,000 Few fees
For more information on low interest rates, check out our page on low-interest personal loans.
LENDER CURRENT APR RANGE LOAN AMOUNT MIN. CREDIT SCORE BEST FOR
Upstart 6.70%-35.99% $1,000-$50,000 No minimum requirements Little credit history
OneMain Financial 18.00%-35.99% $1,500-$20,000 Not specified Secured loans
TD Bank 8.99%-21.99% $2,000-$50,000 700 Low rate caps
Avant 9.95%-35.99% $2,000-$35,000 580* A range of repayment options
LendingPoint 7.99%-35.99% $2,000-$36,500 600 Small loans
Upgrade 8.49%-35.99% (with autopay) $1,000-$50,000 560 Fast funding
LendingClub 9.57%-36.00% $1,000-$40,000 Not specified Online experience

*Avant's minimum credit score is 580 FICO and 550 Vantage.

For more information on bad credit loan rates, check out our page on bad credit personal loans.

LENDER CURRENT APR RANGE LOAN AMOUNT MIN. CREDIT SCORE BEST FOR
SoFi 8.99%-23.43% (with autopay) $5,000-$100,000 680 High borrowing limits
LendingClub 9.57%-36.00% $1,000-$40,000 Not specified Borrowing money from other investors
LightStream 8.99%-24.99%* with AutoPay $5,000-$100,000 Not specified Borrowers who can qualify for the best rates
Prosper 6.99%-35.99% $2,000-$50,000 600 Joint loans
Rocket Loans 9.116%-29.99% (with autopay) Not specified-$45,000 Not specified Fast funding
Best Egg 8.99%-35.99% $2,000-$50,000 600 Borrowers with “okay” credit
Discover 6.99%-24.99% $2,500-$35,000 660 A range of repayment terms
Credible 4.60%-35.99% (with autopay) $600-$100,000 Not specified Borrowers who want to price shop
Earnest Varies by lender $1,000-$250,000 680 Borrowers who want other factors considered in their application
Happy Money 10.50%-29.99% $5,000-$40,000 640 Borrowers who want to consolidate debt
For more information on good credit loan rates, check out our page on good credit personal loans.
LENDER CURRENT APR RANGE LOAN TERM LOAN AMOUNT BEST FOR
Best Egg 8.99%-35.99% 3-5 years $2,000-$50,000 High-income earners with good credit
Happy Money 10.50%-29.99% 2 or 5 years $5,000-$40,000 Consolidating credit card debt
LightStream 8.99%-24.99%* with AutoPay 2-7 years $5,000-$100,000 High-dollar loans and longer repayment terms
PenFed 7.74%-17.99% Up to 5 years $600-$50,000 Smaller loans with a credit union
OneMain Financial 18.00%-35.99% 2-5 years $1,500-$20,000 Fair to poor credit
Discover 6.99%-24.99% 3-7 years $2,500-$35,000 Good credit and next-day funding
Upstart 6.70%-35.99% 3 or 5 years $1,000-$50,000 Consumers with little credit history
For more information on debt consolidation loan rates, check out our page on debt consolidation loans.

A closer look at our top personal loans 

Here's a deep-dive into each lender, why is the best in each category and specifically who would benefit most from borrowing from the lender. 

SoFi: Best overall personal loan

Overview: SoFi is one of the nation's most popular lenders and for a good reason; along with competitive rates and fees, its unique member benefits and features is what sets them apart from the rest of the marketplace. 

LightStream: Best for generous repayment terms 

Overview: As part of Truist Bank, LightStream has gained a positive reputation with consumers for its customer service and fast application process. Plus, it offers relatively competitive fees for the most creditworthy borrowers.

Avant: best for people with bad credit 

Overview: Avant offers personal loans up to $35,000 that can be used to fund nearly any legal expense. The lender has been in business since 2012, has since served over 2 million borrowers and is committed to streamlining and improving the borrowing process for middle-income borrowers. 

Best Egg: Best for low APRs

Overview: With over 1.1 million funded loans, over $21 billion in funding and an A+ rating from the Better Business Bureau, Best Egg has become a trusted personal loan lender. The company also aims to look at each borrower holistically by offering tools and resources designed to help you make steps toward your financial goals. 

Upgrade: Best for fast funding 

Overview: In the past five years, Upgrade has funded over $21 billion in credit to its customers across the country and offers a plethora of credit and lending products. The lender's personal loan comes with competitive, fixed interest rates, low APRs for the most creditworthy borrowers and a relatively high borrowing limit of $50,000. 

Happy Money: Best for paying credit card debt 

Overview: Happy Money offers a personal loan, The Payoff Loan, that's geared specifically toward borrowers looking to take out a personal loan to pay off their high-interest credit card debt. 

Upstart: Best for little credit history 

Overview: Upstart has become known for its unique approval criteria and its competitively low rates that start at less than seven percent. In fact, the company offers 43 percent lower rates when compared to other lenders who use a credit-score only model for approval. 

How we choose our best lenders

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

  • Checkmark
    Affordability
    The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score. We also give bonus points to lenders offering rate discounts, grace periods and that allow borrowers to change their due date. 
  • Checkmark
    Availability
    Minimum loan amounts, number of repayment terms, eligibility requirements, ability to apply using a co-borrower or co-signer and loan turnaround time are considered in this category.
  • Checkmark
    Customer experience
    This category covers customer service hours, if online applications are available, online account access and mobile apps.
  • Checkmark
    Transparency
    For this factor, we consider how well information is presented to the borrower on the lender’s website. This includes listing credit requirements, rates and fees, in addition to offering prequalification.

Calculate your loan payment

Use our calculator to find the perfect loan repayment plan for you. Enter in the loan amount, term and interest rate to get your estimated monthly payment and total interest accrual.

What is a personal loan?

Personal loans are short- and medium-term loans that consumers can receive from banks, credit unions or private lenders like online marketplace lenders and 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. 

A personal loan is repaid in monthly installments, similar to a car loan or home mortgage, with loan terms typically ranging from 24 months to 60 months or even longer. Personal loans are usually unsecured, meaning they are not backed by collateral such as a car, house or other assets. Approval and funding process is often faster than that of a home equity line of credit, which lets you borrow funds as you need them rather than in a lump sum.

Common types of personal loans 

There are many reasons to take out a personal loan, and with the exception of a few lenders, most allow you to use the funds for any purpose. Here are some of the most common scenarios that lead borrowers to take out a personal loan and how to find the best lender if you're in a similar situation.

What are current personal loan interest rates?

Personal loan interest rates, like most other costs, have gone up in the past year. Currently, you can expect to pay 6 percent to 36 percent, depending on your credit score. As of May 17, 2023, the average personal loan interest rate is 10.96 percent.

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.

Average rates as of 05/10/2023

Personal loans 10.97%

Average personal loan interest rates by credit rating

The interest rate you're offered is based on your credit health; namely, your score. Those with less-than-stellar credit are often seen as more 'risky' to lenders and are more likely to be offered higher rates. Borrowers with good-to-excellent credit are more eligible for the lender's most competitive rates and terms. 

Before applying for a loan, make sure to prequalify or look at the lender's requirements and rates, as well as your own credit score to estimate your potential interest rate.

CREDIT BAND CREDIT SCORE RANGE AVERAGE PERSONAL LOAN INTEREST RATE
Excellent Credit 720-850 10.73%-12.50%
Good Credit 690-719 13.50%-15.50%
Average Credit 630-689 17.80%-19.90%
Bad Credit 300-629 28.50%-32.00%

Excellent-credit loans

Excellent-credit loans are geared toward borrowers with excellent credit scores, typically between 720 and 850. Having such a high credit score can come with many benefits, including average APRs as low as 10.3 percent — though some lenders go even lower. If your credit score falls into this range, look for excellent-credit lenders with low advertised rates and few fees.

Good-credit loans

Good-credit loans offer competitive interest rates and generally low fees. You're considered to have good credit if you have a credit score between 690 and 719, and with such a high score, you may qualify for average APRs as low as 13.5 percent. However, if you have good credit and are interested in a personal loan, shop around; you may be able to qualify for an even lower interest rate.

Fair-credit loans

If you have a fair or average credit score, it can be hard to find a personal loan that offers reasonable rates and fees. If your credit score falls between 630 and 689, your credit score is average. While this is considered a less-than-stellar score, you still may be able to qualify for a personal loan with an average APR as low as 17.8 percent. This list of the best personal loans for fair credit features lenders that cater to people with scores in the mid-600s.

Bad-credit loans

You can get approved for a loan even with bad credit, although you won't qualify for the best APRs. If your credit score is between 300 and 629, the best interest rate available could be around 28.5 percent. However, a bad-credit loan, even one with a rate close to 30 percent, is a better financial option than a payday loan. To see what rates are available, compare offers from a few bad-credit lenders.

 

Where to get a personal loan

When it comes to shopping for personal loans, the better your credit score, the more options you have. Generally speaking, there are three main places that provide personal loans:

  • Online lenders: Online lenders also make it easy to compare rates, APRs and fees and apply online.
  • Banks: Applying with a bank could get you a lower rate or access to other member benefits if you have an existing banking relationship. Plus, it could be a good option if you prefer in-person customer service
  • Credit unions: A local credit union may offer more affordable rates and fees than banks and online lenders, especially if you're already a member. However, it's important to be aware that some credit unions may not offer prequalification, so applying could cause a temporary dip in your credit score.

 

How to apply for a personal loan

Follow these 8 steps when applying for a personal loan to make sure you're signing up for the best loan for your credit situation.

  1. Run the numbers. Calculate how much money you need and factor in any origination fees that may be deducted from your loan proceeds.
  2. Check your credit score. The higher your credit score, the better APR you'll receive. Consider a co-signer if you have fair or bad credit for more favorable rates.
  3. Consider your options. Look at a variety of lenders, including banks, credit unions and online lenders to see which offers you the most competitive rates.
  4. Choose your loan type. After looking at your options and knowing where your credit health stands, you can decide which type of loan will best suit your borrowing needs based on the expense you're funding.  
  5. Shop around for the best personal loan rates. Even though it may seem tempting to accept the first offer you receive, shop around and compare multiple lenders to make sure you're getting the most competitive rates and terms. You can do this through prequalifying with multiple lenders.
  6. Pick a lender and apply. Once you've found the best loan offer, it's time to start the application process. Most lenders offer a completely online application but some may require you to complete certain aspects in-person, so make sure you live close to a brick-and-mortar location if necessary. 
  7. Provide necessary documentation. While every lender will differ in its documentation requirements, most will need you to submit documents like pay stubs, tax returns and personal identification.
  8. Accept the loan and start making payments. After you've been approved, you'll accept the loan terms and will need to sign the loan agreement and documents. After finalizing the loan, make a repayment plan and consider signing up for autopay to ensure you don't miss any monthly payments. 

 

How to improve your chances of getting approved for a personal loan

While each lender has differing eligibility requirements, there are a few things you can do across the board to increase your eligibility odds

  • Credit score and report. Your credit score impacts the rates and lenders you will likely qualify for. Knowing where you stand can help you figure out where to look. If you have less than stellar credit, bad credit loans tend to have reasonable interest rates for low credit borrowers.
  • Payment history. Your payment history makes up 35 percent of your FICO score — the score that most lenders use when determining eligibility. If you have a history of missing payments, then lenders will be less likely to extend an offer to you.
  • Income. Most lenders require that you meet a specific annual income to get approved. Before applying, check the minimum income requirements to ensure you meet the criteria.
  • Debt-to-income ratio. Your debt-to-income ratio (DTI) is the percentage difference between your monthly debts and your monthly gross income. Generally, the higher your DTI, the less likely you'll get approved. If possible, pay down high interest debt before applying to increase your approval odds.
  • Collateral. Secured personal loans are offered by many lenders and can be used for the same purpose as an unsecured loan. The main difference is that they're easier to get approved for because you have to put up a form of collateral to get approved. Just keep in mind that if you default on the balance, your collateral could be seized to satisfy the missing payments.
  • Alternative considerations. There are lenders that don't base approval solely on credit score and will also consider other factors when determining eligibility. For example, your employment or schooling history may be considered which can increase your approval chances, especially if you have less-than-stellar credit. 

Pros and cons of personal loans

There are a number of benefits and drawbacks to consider before taking out a personal loan.
 

Pros:

  • Personal loans come in one lump sum, usually with a fixed interest rate.
  • You can get money quickly, sometimes within as little as a day, depending on the lender you choose.
  • Many are unsecured loans, which means you don't need collateral like your home or car to borrow money.
  • Interest rates are much lower than those of payday loans, which charge upward of 400 percent.
  • Flexibility and versatility allow you to use a personal loan for almost any purchase.
  • Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay the loan.
  • You may have easier payments if you consolidate debt and have a single, fixed-rate monthly payment instead of several accounts to manage.

Cons:

  • APRs are generally higher than those of some secured loans.
  • If you have a low credit score, you might not qualify.
  • Some lenders charge fees, like origination, late and prepayment fees. The lower your credit score, the more likely you are to have a lender that charges more fees.
  • Some lenders don’t allow co-signers, which means you can only use your credit score and history to qualify.
  • You’re adding another bill to your monthly payments, which could stretch or even break your budget.
  • You can increase your overall debt if you use it to consolidate your debt but continue to spend on your credit cards.
  • Personal loans often have higher monthly payments than the minimum payment on credit cards.

How to manage a personal loan 

Effectively managing a personal loan comes down to your ability to make the monthly payments. It's imperative that you understand the full responsibility and predicted repayment timeline prior to taking out the loan. If you miss the monthly payments or are unable to make them, contact the lender as soon as possible to see if any hardship payment relief options are available.

If you need a lower monthly payment, consider a longer repayment term. While it will increase the amount you'll repay over the life of the loan in interest, a longer term can take the immediate payment responsibility off of your shoulders. Regardless of your financial situation, make sure you're aware of your lender options prior to applying so you have resources and don't risk any negative credit outcomes. 

Alternatives to a personal loan

If a personal loan isn't the right option for your financial situation, there are other ways to get the funds you need. Here are a few of the most popular alternatives to a personal loan.

The best option for you will depend on what you're using the money for, how much you need and your financial health. Never borrow more than you need and make sure the monthly payment fits comfortably in your budget.

How Fed rate hikes impacts personal loans

In order to combat inflation, the Federal Open Market Committee (FOMC) raised interest rates seven times in 2022. It has continued to raise rates in 2023 — landing at 5-5.25 percent most recently. Lenders often respond to these hikes by increasing personal loan interest rates along with the rates of other credit products.

FAQs about personal loans