Personal Loans
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Advertiser Disclosure

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone. For a full list of our advertisers, see our disclosure page.

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the issuer. We may be compensated through the issuer’s Affiliate Program. For a full list of our advertisers, see our disclosure page.

Average Personal Loan Interest Rates for 2018

The average annual percentage rate on a personal loan will range from 10% to 28% in 2018. 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 ScoreAverage 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%

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.

LenderAPR
Affirm10.00% - 30.00%
Alliant Credit Union12.15% - 20.00% with AutoPay
American Express6.98% - 19.97%
Avant9.95% - 35.99%
Backed2.90% - 15.99%
Best Egg5.99% - 29.99%
BorrowersFirst7.22% - 29.99%
Citibank7.99% - 17.99% with discounts (rate may be higher)
Citizens Bank5.98% - 16.23%
Discover Personal Loans6.99% - 24.99%
E-LOAN7.49% - 35.89%
Earnest5.25% - 14.24%
FreedomPlus4.99% - 29.99%
iLoan17.60% - 35.99%
KeyBank7.16% - 15.95% with AutoPay
Lending Club5.99% - 35.89%
LendingPoint15.49% - 34.99%
LightStream3.09% - 17.49% with AutoPay (rates vary by loan purpose)
LoanDepot6% - 22%
LoanStart4.84% - 35.99%
Marcus6.99% - 23.99%
Mariner Finance24.00% - 36.00%
Mr. Amazing Loans19.9% - 29.9%
Navy Federal Credit Union7.39% - 18.00%
OneMain Financial17.59% - 35.99%
Payoff8.00% - 25.00%
Peerform5.99% - 29.99%
PersonalLoans.com5.99% - 35.99%
PNC Bank5.99% - 25.44% with AutoPay
Prosper5.99% - 35.99%
Regions Bank7.74% - 17.74% with AutoPay
RocketLoans5.983% - 29.990%
Santander Bank6.99% - 16.99% with ePay
Self Lender10.58% - 14.77%
SoFi5.49% - 14.24% with AutoPay (variable rates also available)
TD Bank8.99% - 15.99% with AutoPay
Upgrade5.66% - 35.97%
Upstart7.37% - 29.99%
Wells Fargo6.99% - 23.99%

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, and 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, and 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, such as tax returns, pay stubs, or W-2s, that shows proof of your employment and income.

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.

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