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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.
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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 |
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
- 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
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.