This week’s average personal loan rates: October 25, 2022 | Rates for most borrowers fall

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Over the past week, personal loan rates have fallen for borrowers with excellent, good, and poor credit scores — a good sign for those looking to lock in a low rate. You can take out a personal loan for a variety of purposes, like covering the cost of a medical bill or financing a home improvement project.

However, personal loan rates may stay relatively high given the current interest rate climate. The Federal Reserve has increased the federal funds rate five times in 2022, which has a direct impact on the rates offered by different lenders on their personal loans.  

Average personal loan rates

We’ve compiled a database of 28 personal loan products and averaged their rates so you know the current landscape. The higher your credit score, the more likely you’ll qualify for a better rate.  

 This week’s rates
Average overall rate19.65%
Average low rate9.76%
Average high rate29.95%
Highest rate99.99%
Lowest rate5.60%

The lowest rate of the companies we track is from Upstart Personal Loan, which has a minimum APR of 5.60%. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 99.99%.

The actual rate you can get is based on your creditworthiness and other aspects of your financial situation. Check your rates with any lenders you are interested in to see what you’re eligible for. 

Average personal loan rates by credit score

These rates are based on data from 170 borrowers who applied for loans and received rates.

Credit score

This week’s average APR

Average APR from 2 weeks ago

Minimum APR

Maximum APR

Excellent (720+)

16.67%

18.37%

4.94%

159.99%

Good (660-719)

25.09%

26.28%

4.90%

159.99%

Fair (620-659)

36.70%

35.54%

8.69%

229.00%

Poor (<620)

68.95%

91.87%

16.08%

292.00%

Average loan amount and term length by credit score

These loan amounts and term lengths are based on data from 170 borrowers who applied for loans and received rates.

Credit score

Average requested loan amount

Average loan term length

Maximum loan term length

Excellent (720+)

$52,425.83

55.1 months

240 months

Good (660-719)

$28,472.97

56.4 months

240 months

Fair (620-659)

$7,660.61

41.9 months

84 months

Poor (<620)

$4,860.00

33.9 months

60 months

Percentage of borrowers by loan purpose

These loan purposes are based on data from about 177 borrowers who applied for loans and received rates. One borrower used loan funds to pay for their wedding this week. 

Loan purpose

Percentage of borrowers

Debt consolidation

47%

Auto

8%

Home improvement

8%

Other

8%

Household expenses

5%

Credit card refinancing

4%

Boat

4%

Medical

3%

Moving

2%

Baby

2%

Education

2%

Large purchase

1%

Special occasion

1%

Business

1%

Vacation

1%

Taxes

1%

Auto refinancing

1%

Wedding

1%

Frequently asked questions

Is there a minimum credit score to qualify for a personal loan?

Different lenders require different minimum credit scores for borrowers to qualify for a personal loan. Some lenders have no minimum at all, while others offer low rates only to borrowers with excellent credit histories. 

What can I do with the money from a personal loan?

Most lenders allow you to use a personal loan for almost any purpose you can think of, although it does depend based on the company. Some common uses include: 

Every reason available isn’t listed here, and you should reach out to your individual lender to ask about what choices it offers. 

How do I know if I should get a personal loan?

Personal loans aren’t right for every situation, nor every person. They can sometimes be hard to qualify for, with strict credit score requirements. Personal loans also can carry high interest rates, which could mean there are better options out there. 

For larger purchases that won’t fit within a credit limit, a personal loan might be the right option. It’s worth calculating the interest you’ll pay, and carefully considering options like a secured loan to bring down the interest rate.

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