Average Personal Loan Interest Rates

Average Personal Loan Interest Rates

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on LendingTree's secure website

The average annual percentage rate on a personal loan ranged from 10% to 28% in 2019.

Actual rates will vary based on how creditworthy you are, the length of the loan, the loan amount, and the lender.

Here we compile the average rates on unsecured personal loans, grouped by credit score and lender.

Average Personal Loan Interest Rates by Credit Score

Your credit score will be one of the largest factors in determining the annual percentage rate (APR) on a personal loan.

In general, the higher your credit score, the lower the rate will be.

Individuals with excellent credit, which is defined as any FICO credit score between 720 and 850, should expect to find rates at about 10% to 12%, and many of these individuals may even qualify for lower rates.

However, if you do have an excellent credit score, you may want to consider a 0% balance transfer credit card instead of a personal loan, as you can save money on interest.

Credit Score
Average Personal Loan APRs
Excellent (720 - 850)10.3% - 12.5%
Good (680 - 719)13.5% - 15.5%
Average (640 - 679)17.8% - 19.9%
Poor (300 - 639)28.5% - 32.0%
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For individuals with average to poor credit, APRs on personal loans will generally be between 18% and 36%. If you have a credit score of less than 580 or no credit history, you may have trouble qualifying for a conventional personal loan altogether.

However, this doesn’t mean you should turn to payday loans, which can carry APRs in excess of 100%. Those loans make it all too easy to fall into in a cycle of never-ending debt. Instead, consider going for a loan or financial aid to a local credit union or nonprofit financial assistance organization.

Average Personal Loan Interest Rates by Lender

Interest rates on unsecured personal loans typically range between 5% and 36%.

Banks and credit unions will offer competitive rates, but some of the lowest you can find are from online lenders, especially those that cater to creditworthy borrowers.

If you have a lower credit score, you will also have more luck with online lenders, as some will accept borrowers with scores as low as 580, and sometimes lower. In the table below, we take a look at the rates offered on an unsecured personal loan by a variety of online and traditional lenders.

Lender/Lending Platform
Affirm10.00% - 30.00% (0% APR offered at select retailers)
Alliant Credit Union6.49% - 10.49% with AutoPay
American Express6.90% - 19.98%
Avant9.95% - 35.99%
Backed2.90% - 15.99%
Best Egg5.99% - 29.99%
Citibank7.99% - 17.99% with discounts (rate may be higher)
Citizens Bank6.80% - 20.91% with AutoPay
Discover Personal Loans6.99% - 24.99%
E-LOAN7.99% - 35.99%
Earnest5.99% - 17.24%
FreedomPlus7.99% - 29.99%
{"alignsHorizontal":["left","right"],"alignsVertical":[],"columnWidths":[],"data":[["Lender\/Lending Platform","APR"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Affirm Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/affirm-personal-loan-review\"\u003EAffirm\u003C\/a\u003E\u003C\/span\u003E","10.00% - 30.00% (0% APR offered at select retailers)"],["Alliant Credit Union","6.49% - 10.49% with AutoPay"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"American Express Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/american-express-personal-loan-review\"\u003EAmerican Express\u003C\/a\u003E\u003C\/span\u003E","6.90% - 19.98%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Avant Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/avant-personal-loan-review\"\u003EAvant\u003C\/a\u003E\u003C\/span\u003E","9.95% - 35.99%"],["Backed","2.90% - 15.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Best Egg Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/best-egg-personal-loan-review\"\u003EBest Egg\u003C\/a\u003E\u003C\/span\u003E","5.99% - 29.99%"],["Citibank","7.99% - 17.99% with discounts (rate may be higher)"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Citizens Bank Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/citizens-bank-personal-loan-review\"\u003ECitizens Bank\u003C\/a\u003E\u003C\/span\u003E","6.80% - 20.91% with AutoPay"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Discover Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/discover-personal-loan-review\"\u003EDiscover Personal Loans\u003C\/a\u003E\u003C\/span\u003E","6.99% - 24.99%"],["E-LOAN","7.99% - 35.99%"],["Earnest","5.99% - 17.24%"],["FreedomPlus","7.99% - 29.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"KeyBank Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/keybank-personal-loan-review\"\u003EKeyBank\u003C\/a\u003E\u003C\/span\u003E","7.49% - 15.24% with AutoPay"],["LendingClub","8.05% - 35.89%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"LendingPoint Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/lendingpoint-personal-loan-review\"\u003ELendingPoint\u003C\/a\u003E\u003C\/span\u003E","9.99% - 35.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"LightStream Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/lightstream-personal-loan-review\"\u003ELightStream\u003C\/a\u003E\u003C\/span\u003E","4.99% - 19.99%"],["LoanStart","4.85% - 35.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Marcus Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/marcus-personal-loan-review\"\u003EMarcus\u003C\/a\u003E\u003C\/span\u003E","6.99% - 19.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Mariner Finance Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/mariner-finance-personal-loan-review\"\u003EMariner Finance\u003C\/a\u003E\u003C\/span\u003E","Up to 36.00%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Mr. Amazing Loans Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/mr-amazing-loans-personal-loan-review\"\u003EMr. Amazing Loans\u003C\/a\u003E\u003C\/span\u003E","19.9% - 29.9%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Navy Federal Credit Union Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/navy-federal-credit-union-personal-loan-review\"\u003ENavy Federal Credit Union\u003C\/a\u003E\u003C\/span\u003E","8.19% - 18.00%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"OneMain Financial Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/springleaf-onemain-financial-personal-loan-review\"\u003EOneMain Financial\u003C\/a\u003E\u003C\/span\u003E","18.00% - 35.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Payoff Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/payoff-personal-loan-review\"\u003EPayoff\u003C\/a\u003E\u003C\/span\u003E","5.99% - 24.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Peerform Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/peerform-personal-loan-review\"\u003EPeerform\u003C\/a\u003E\u003C\/span\u003E","5.99% - 29.99%"],["PersonalLoans.com","5.99% - 35.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"PNC Bank Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/pnc-bank-personal-loan-review\"\u003EPNC Bank\u003C\/a\u003E\u003C\/span\u003E","5.99% - 25.49% with AutoPay"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Prosper Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/prosper-personal-loan-review\"\u003EProsper\u003C\/a\u003E\u003C\/span\u003E","7.95% - 35.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Regions Bank Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/regions-bank-personal-loan-review\"\u003ERegions Bank\u003C\/a\u003E\u003C\/span\u003E","7.50% - 18.83% with AutoPay"],["RocketLoans","7.161% - 29.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Santander Bank Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/santander-bank-personal-loan-review\"\u003ESantander Bank\u003C\/a\u003E\u003C\/span\u003E","6.99% - 16.99% with ePay"],["Self Lender","10.58% - 14.77%"],["SoFi","5.99% - 18.85% with AutoPay"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"TD Bank Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/td-bank-personal-loan-review\"\u003ETD Bank\u003C\/a\u003E\u003C\/span\u003E","6.99% - 18.99% with AutoPay"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Upgrade Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/upgrade-personal-loan-review\"\u003EUpgrade\u003C\/a\u003E\u003C\/span\u003E","5.94% - 35.97%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Upstart Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/upstart-personal-loan-review\"\u003EUpstart\u003C\/a\u003E\u003C\/span\u003E","7.86% - 35.99%"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Wells Fargo Personal Loans Review\" href=\"https:\/\/www.valuepenguin.com\/personal-loans\/wells-fargo-personal-loan-review\"\u003EWells Fargo\u003C\/a\u003E\u003C\/span\u003E","5.74% - 24.24%"]],"footnote":"","hasMarginBottom":true,"isExpandable":false,"isSortable":false,"maxWidth":"1215","minWidth":"100%","showSearch":false,"sortColumnIndex":0,"sortDirection":"asc"}

What is Considered a Good Interest Rate on a Personal Loan?

A good interest rate on a personal loan varies depending on what the loan is being used for, the loan balance and the loan term.

Unfortunately, you may not qualify for the best personal loan rates that a lender offers but keep in mind that the average rates for a personal loan ranged from 10% to 28% in 2019.

You should apply to multiple lenders to see what rates you can qualify for based on your credit history and compare your offers to find a good interest rate.

If the rates you receive are too high and you won't be able to pay back the loan with interest, consider other options or wait until you improve your credit score to apply for the loan.

Who Has the Best Personal Loan Interest Rates?

Currently, Backed is offering some of the best personal loan interest rates, as it requires most borrowers to have a cosigner to 'back' the loan.

Get Personal Loan Rates

on LendingTree's secure website

However, it still may not be the best option for you, especially if you don't have a cosigner. To find the best personal loan lender for your situation, do some comparison shopping before deciding to take out a personal loan.

Your personal loan interest rates will depend on your credit score and other financial history. Each lender is different with various types of loan offerings and ways to evaluate a potential borrower.

Other Factors That Affect Your Personal Loan Interest Rate

Lenders will look at a variety of data points when making a decision about whether to extend a loan to you. Chief among these are:

  • Your credit score and history
  • Employment status
  • Debt-to-income ratio

Your credit score will be one of the largest factors in determining whether you can qualify for a personal loan. In fact, many lenders have strict credit score cutoffs. For credit history, lenders may look at:

  • the length of your credit history
  • the number of negative marks in recent years
  • the number of credit inquiries you’ve had in the past year

Many lenders will want to see a credit history of at least one to two years.

Another factor lenders consider is your employment status and history. Some lenders will require that you provide proof of income, whether through full- or part-time employment or self-employment. Other lenders may also require a minimum personal or household annual income to apply, with these minimums frequently between $20,000 and $40,000. If the lender has these requirements, you’ll need to provide documentation as proof of your employment and income, such as

  • Tax returns
  • Pay stubs
  • W-2's

Debt-to-income (DTI) ratio is another important measure lenders use to evaluate applicants. That’s the amount of debt, including housing payments, you carry relative to your pretax monthly income.

For example, if your pretax monthly income is $4,000, and your total debt payments are $1,200 per month, your DTI ratio would be 30%. In general, lenders will want to see applicants with DTI ratios under 45%, and in some cases under 35%.

A DTI ratio of 50% or higher is a bad sign to lenders, as it means you may have trouble paying back your debts (and thus may default on the unsecured loan you’re applying for).

Finally, the length and amount of the loan will also affect your interest rate.

Longer terms and higher loan amounts will typically translate to higher APRs. This is because there is a higher risk that you won’t pay back the loan if you borrow a lot or if you plan to repay the loan over a long period of time.

Justin is a Sr. Research Analyst at ValuePenguin, focusing on small business lending. He was a corporate strategy associate at IBM.