Disclosure: This article contains affiliate links. If you apply through our links, we may earn a commission at no extra cost to you. We only recommend products we believe offer genuine value.
Personal loan rates in 2026 vary widely — from around 7% for borrowers with excellent credit to 36% for those with poor credit. Knowing where you are likely to land helps you decide whether a personal loan makes sense and what rate to aim for when shopping lenders.
Find Your Best Financial Match
Answer a few questions and get personalized loan and credit recommendations from our AI tool.
Average Personal Loan Rates by Credit Score (May 2026)
| Credit Score | Credit Tier | Average APR Range |
|---|---|---|
| 720 – 850 | Excellent | 7% – 12% |
| 690 – 719 | Good | 11% – 17% |
| 630 – 689 | Fair | 17% – 24% |
| 580 – 629 | Poor | 24% – 32% |
| Below 580 | Very Poor | 32% – 36%+ |
Current Rates: Major Lenders (May 2026)
| Lender | APR Range | Best For |
|---|---|---|
| LightStream | 6.99% – 25.29% | Excellent credit, large loans |
| SoFi | 8.99% – 29.49% | Good credit, no fees |
| Marcus by Goldman Sachs | 6.99% – 24.99% | No fees, bank-backed |
| Discover | 7.99% – 24.99% | Direct creditor payoff |
| Upstart | 7.80% – 35.99% | Fair credit |
| Avant | 9.95% – 35.99% | Lower credit scores |
| Prosper | 8.99% – 35.99% | Peer-to-peer lending |
For a deeper look, read our full Avant personal loan review.
Ready to compare personal loan rates? BorrowMoney.us lets you check rates from multiple lenders in minutes. Seeing your rate does not affect your credit score.
What Determines Your Personal Loan Rate
- Credit score: The single biggest factor. Moving from fair to good credit can lower your rate 5-10 percentage points.
- Debt-to-income ratio: Most lenders want total monthly debt under 36-43% of gross income.
- Loan term: Shorter terms often have lower rates but higher monthly payments.
- Loan amount: Some lenders offer better rates on mid-range amounts ($10,000-$40,000).
- Income stability: Stable employment reassures lenders and can improve your rate.
How Personal Loan Rates Compare to Other Debt
| Debt Type | Typical APR Range |
|---|---|
| Credit card | 20% – 29% |
| Personal loan (good credit) | 8% – 15% |
| Auto loan (new car) | 5% – 9% |
| Home equity loan | 6% – 10% |
| Mortgage | 6.5% – 7.5% |
How to Get the Lowest Rate
Have less-than-perfect credit? Low Credit Finance works with lenders who specialize in borrowers with bad or fair credit, with loan amounts up to $50,000.
- Check your credit report for errors and dispute any you find
- Pay down credit card balances to lower your utilization ratio
- Pre-qualify with 3-5 lenders using soft pulls
- Compare total loan cost (APR plus fees), not just the monthly payment
- Consider a shorter term if the payment is manageable
- Add a creditworthy co-signer if your score needs a boost
How to Calculate What Your Loan Will Actually Cost
Looking at the interest rate alone does not tell the full story. To understand the true cost of a personal loan, you need to factor in both the APR and the loan term.
Here is a simple way to think about it: on a $10,000 personal loan at 15% APR over 36 months, you would pay roughly $347 per month and about $2,480 in total interest by payoff. At 25% APR over the same term, your monthly payment rises to about $397, and you would pay around $4,296 in total interest. That 10-percentage-point difference in rate costs you nearly $1,800 over the life of the loan.
When comparing loan offers, always look at the total repayment amount, not just the monthly payment. A lower monthly payment can come with a longer term that significantly increases the total interest you pay.
Tips for Getting the Best Rate on a Personal Loan
If you want to lock in the lowest possible rate, here are the most effective steps:
- Check your credit report first. Errors on your report can hurt your score. Dispute any mistakes before applying. You can get a free report at AnnualCreditReport.com.
- Pay down existing balances. Lowering your credit utilization (how much of your available credit you are using) can raise your credit score quickly. Try to get below 30% utilization before applying.
- Pre-qualify with multiple lenders. Most online lenders offer a soft-pull pre-qualification that does not affect your credit. Compare offers from 3 to 5 lenders before committing to one.
- Consider adding a co-signer. If your credit is fair, adding a co-signer with strong credit can significantly lower the rate you are offered. Just make sure both parties understand the responsibility.
- Choose the shortest term you can afford. A shorter loan term usually means a lower interest rate. If the higher monthly payment is manageable, a 24-month term will cost less in total interest than a 60-month term.
Frequently Asked Questions
What is the average personal loan interest rate in 2026?
The average APR across all credit scores is approximately 12-13% as of May 2026. Excellent credit borrowers can qualify for 7-9%; poor credit may pay 25-36%.
What is a good interest rate on a personal loan?
For good credit (670-719), under 15% APR is good. For excellent credit (720+), under 10% is achievable.
Why is my personal loan rate so high?
Credit score and history are the primary drivers. Shopping multiple lenders can often uncover a significantly lower rate.
Does the Federal Reserve affect personal loan rates?
Indirectly. Fed rate changes typically push personal loan rates in the same direction, though less directly than mortgages.
How can I get a lower interest rate on a personal loan?
Improve your credit score, reduce your DTI, compare at least 3-5 lenders, and consider a shorter loan term.
Related Articles
- Best Personal Loans for Debt Consolidation 2026
- Best Personal Loans for Bad Credit 2026
- Best Personal Loans for Medical Bills 2026
- How to Improve Your Credit Score Fast in 2026
- Debt-to-Income Ratio Calculator 2026
Rates as of May 2026. Rates change frequently — check the lender’s site for the most current information.