What personal loan interest rate can I expect with good credit?

Borrowers with good credit (680–719) commonly see personal loan rates in the 12–18% APR range. Excellent credit (720+) typically qualifies for 7–12% APR. Your exact rate also depends on loan term, loan amount, and lender type — always compare the full APR, not just the headline rate, across multiple lenders. Source: Federal Reserve H.15 release at federalreserve.gov.

Why is my personal loan APR higher than the interest rate I was quoted?

A 1–8% origination fee is common on personal loans and is factored into the APR but not always highlighted in the headline interest rate. The CFPB advises comparing APR — which bundles in fees — rather than the stated interest rate, since APR gives the true cost of borrowing across different lenders' fee structures. Source: CFPB, consumerfinance.gov.

Do credit unions offer lower personal loan rates than banks?

Typically, yes. Credit unions generally offer personal loan rates that run about 1–3 percentage points below bank rates, since they're member-owned and not profit-driven in the same way as banks or online lenders. It's worth getting a credit union quote if you're eligible for membership before comparing bank and online-lender offers.

Does a shorter loan term get you a lower personal loan interest rate?

Often, yes. Shorter terms (12–24 months) tend to carry lower interest rates than longer terms (60–84 months), since the lender's repayment risk window is shorter. A shorter term also means less total interest paid overall, even before accounting for the rate difference — though the tradeoff is a higher monthly payment.

What is the average personal loan interest rate?

Average personal loan interest rates at commercial banks typically range from about 7–8% for borrowers with excellent credit to 25–36% for subprime borrowers. The Federal Reserve H.15 release tracks 24-month personal loan rates at commercial banks as a benchmark.

Personal loan rates are not one-size-fits-all — they vary significantly by lender type, loan amount, repayment term, and your credit profile. The Federal Reserve H.15 Statistical Release tracks average interest rates on consumer installment loans, including 24-month personal loans at commercial banks, and is the authoritative public benchmark for average rates.

How credit score shapes your rate

Excellent credit (720+): lenders typically offer rates in the 7–12% APR range for qualified borrowers.
Good credit (680–719): rates commonly fall in the 12–18% APR range.
Fair credit (640–679): rates typically run 18–25% APR; some lenders decline this tier.
Poor credit (below 640): rates can reach 25–36% APR — approaching or exceeding credit card rates. At this level, consolidation only makes sense if the personal loan rate is meaningfully lower than the debts you're replacing.
No credit history: limited options; secured loans or credit-builder products may be more appropriate.

Other factors that affect your rate

Loan term: shorter terms (12–24 months) often carry lower rates than longer terms (60–84 months).
Loan amount: smaller loans (under $5,000) sometimes carry higher rates because they are less profitable for lenders.
Lender type: credit unions typically offer lower rates than online lenders or banks — average credit union personal loan rates often run 1–3 percentage points below bank rates.
Debt-to-income ratio: lenders want your total monthly debt obligations (including the new loan) to be below 35–45% of gross income.
Origination fees: a 1–8% origination fee is common and is factored into the APR — always compare APR, not just the stated interest rate.

Personal loan rate benchmarks

The Federal Reserve H.15 release publishes average interest rates on consumer installment loans at commercial banks, updated monthly. This is the most widely cited public benchmark for average personal loan rates in the United States. — Federal Reserve H.15 — Selected Interest Rates
The CFPB advises borrowers to compare the Annual Percentage Rate (APR) — which includes fees — rather than the stated interest rate when evaluating personal loan offers. APR gives a true cost comparison across lenders. — CFPB — What to Know About Personal Loans

Key takeaways

Personal loan rates vary widely — credit score is the single biggest driver.
Excellent-credit borrowers can access rates comparable to home equity products; poor-credit borrowers may find personal loan rates near or above credit card rates.
Always compare APR (including fees), not just the stated interest rate.
Credit unions typically offer lower rates than banks or online lenders — worth a quote if you qualify for membership.
The Fed H.15 release at federalreserve.gov is the authoritative public benchmark for average personal loan rates.

Browse all answers
More answers to common questions about financing, banking, and credit.

What is the average personal loan interest rate?

How credit score shapes your rate

Other factors that affect your rate

Personal loan rate benchmarks

Key takeaways

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