A good rate for a personal loan is between 11.26% and 13.31% for three-year loans or 15.34% and 18.30% for five-year loans. Those are the average rates for borrowers with very good or exceptional credit.
You’ve probably seen lenders advertise personal loan rates far below these (as low as 5.99%, currently), but those are the absolute lowest rates possible. Most borrowers, even those with excellent credit, won’t qualify for the lowest rate. Getting a rate within the average for someone with very good or exceptional credit means you’re already ahead of the curve!
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What’s a good APR for a personal loan by credit score?
Some of the best personal loans advertise rates as low as 5.99%, but many have rates that climb as high as 35.99%. So how do you know if you’re getting a good rate for a personal loan?
The easiest way is to look at the average rates people get at each credit score level. If you’re offered a rate within the range for your score (or better than the range), congratulations: That’s a good rate for your personal loan.
| Credit score range | Rate range (APR) |
|---|---|
| Excellent (800+) | 11.26% – 15.34% |
| Very good (740 – 799) | 13.31% – 18.30% |
| Good (670 – 739) | 19.88% – 23.34% |
| Fair (580 – 669) | 29.35% – 30.90% |
Average personal loan rates by lender
Lenders use a wide range of data points, including credit score, income, debt-to-income ratio, and loan size, to determine whether they’ll approve you for a personal loan, and at what rate. Each lender has its own set range of rates, meaning it has defined the absolute lowest and highest rates any borrower could qualify for.
You should carefully choose a personal loan lender, considering loan size, terms, customer reviews, and more. However, choosing the lender with the lowest rate is often the right call.
The table below shows current rates from some of the top lenders, including Upstart, SoFi, and LendingClub, as well as their funding amounts and minimum credit score requirements. We’ve also included rates for two of our top-rated online loan marketplaces, Credible and LendingTree.
Many of the advertised lowest rates include an autopay discount.
Important: Make sure you realize how much extra interest you’ll pay over the life of the loan. Are fees clearly explained? Do prepayment penalties apply? Also, be sure you’re clear on how your credit score affects interest rates and the additional interest costs over the life of the loan.
6 ways to get a good rate on a personal loan
Lenders look at your credit score, income, debt-to-income ratio (DTI), and loan amount when setting your rate. Here’s how to improve your odds:
1. Improve your credit score
This isn’t an overnight solution, but if you can wait a few months before applying, there are several ways to improve your credit score.
Paying your bills on time, lowering credit card balances, and correcting credit report errors can all help. Even moving from “fair” to “good” (FICO 670 to 739) credit can significantly reduce your APR.
2. Lower your debt-to-income ratio
Most lenders prefer a DTI below 36% (some allow up to 43%). You can lower DTI by paying down debt or increasing income.
3. Ask about discounts
Most lenders offer a small rate discount (usually 0.25%) when you enroll in automatic payments. While this may seem small, it can save you a significant amount over the life of the loan.
Some lenders may offer additional rate discounts. KeyBank, for instance, offers a 0.75% relationship discount for having a KeyBank Relationship Account. LightStream offers a Rate Beat program; if you qualify for a lower rate with another lender, LightStream will beat it by 0.10%.
4. Choose the shortest term
Lenders offer better personal loan rates on short-term loans because they pose a lower risk to them. Choose the shortest term you’re comfortable with, keeping in mind that shorter repayment terms mean larger monthly payments.
Use our personal loan calculator to see how adjusting a loan term can affect your monthly payments.
5. Get a joint loan
Some lenders allow you to apply for a personal loan with a co-borrower. A co-borrower inherently reduces the risk of missed payments or default (since there are two incomes backing the loan), so lenders typically offer better rates on these loans.
Not every lender allows co-borrowers on personal loans. Limit your search to these best joint personal loans if this is the right path for you.
6. Get a secured loan
Personal loans are typically unsecured, meaning there’s no collateral backing them in the way an auto loan is secured by the car or a mortgage is secured by the house. This presents more risk to the lender.
However, some lenders have secured personal loans for borrowers with fair or poor credit. By putting your car, valuables, or even investment accounts up as collateral, you lower the risk for the lender and thus lock in a better rate.
Just be careful: If you default on a personal loan secured by collateral, the lender can seize your property.
How personal loan rates compare to alternatives
Personal loans aren’t your only option to get money for a wide variety of purposes. Assuming you qualify, you can also turn to options such as home equity loans and credit cards. Though payday loans are easy to get, we never recommend them.
The table below shows typical rates for these various loan types, compared to personal loans:
| Loan type | Average rates |
|---|---|
| Personal loan | 13.44% – 18.11% |
| Home equity loans | 6.44% – 7.05% |
| Credit cards | 20.97% |
| Payday loans | Up to 400% |
I have never personally applied for a personal loan, but when I see really low rates, I know there must be a catch. Maybe it’s a teaser rate that goes up, or fees are separate from the rate. Otherwise, the lender may be seeking a nearly perfect credit score and virtually 0% DTI.
Should I still get a personal loan with a bad rate?
The short answer: If you have an emergency and need money fast, accepting a personal loan with a high rate might still be a better option than swiping a high-interest credit card, and it’s definitely better than taking out a payday loan.
If your need is less urgent, it’s probably worth waiting until you can get a personal loan with a good rate.
To illustrate this, the table below shows how much you’d pay in interest on a $20,000 loan at various rates, over various loan terms. You can see what a huge difference a good rate makes in the long run:
| Rate | 3 years | 5 years | 7 years |
|---|---|---|---|
| 12% | $3,914 | $6,693 | $9,657 |
| 18% | $6,030 | $10,472 | $15,310 |
| 24% | $8,248 | $14,522 | $21,455 |
| 30% | $10,565 | $18,824 | $28,036 |
| 36% | $12,979 | $23,360 | $34,992 |
Recap of current personal loan rates
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
- Consumer Financial Protection Bureau, What Is a Payday Loan?
- Credible, Average Personal Loan Interest Rates in February 2026
- Federal Reserve, Consumer Credit – G.19
- FICO, What Is a Credit Score?
- In Charge Debt Solutions, How to Get a Debt Consolidation Loan With a High Debt-to-Income Ratio
About our contributors
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Written by Timothy Moore, CFEI®Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.
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Reviewed by Michael Menninger, CFP®Michael Menninger, CFP®, is the founder and president of Menninger & Associates Financial Planning. He provides his clients with financial products and services, always keeping their individual needs foremost in mind.