Best personal loan rates for September 2022
Personal loans allow you to borrow a lump-sum to pay for a large expense and then pay it back over time in monthly installments. They have a couple of key factors to keep in mind when comparing options.
The best personal loan interest rates currently range from about 3 percent to 36 percent. The actual rate you receive depends on multiple factors, such as your credit score, annual income and debt-to-income ratio. The best rate that you can qualify for might not be the best loan you can qualify for — consider additional features offered and the other listed factors as well.
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The Bankrate guide to choosing the best personal loan
Why trust Bankrate?
At Bankrate, we strive to make the personal loan experience simple and straightforward. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.
We compare lenders based on availability, affordability and customer experience. Our goal is to provide you with all the information you need to make informed borrowing decisions. The lenders we highlight have been assessed for low APRs, good lending terms, low fees and good customer service.
What is a personal loan?
Personal loans are short-term loans that consumers can receive from banks, credit unions or private lenders like online marketplace lenders and peer-to-peer lenders. The loan funds can be used for just about any purpose, such as paying off other debt, financing a home renovation or paying for family needs, like a wedding or adoption.
A personal loan is repaid in monthly installments, similar to a car loan or home mortgage, with loan terms typically ranging from 24 months to 60 months or even longer. Personal loans are typically unsecured, meaning they are not backed by collateral such as a car, house or other assets. If you need cash fast, these loans are a good choice because the approval and funding process is often faster than that of a home equity line of credit, which lets you borrow funds as you need them rather than in a lump sum.
Compare personal loan rates in September 2022
LENDER | CURRENT APR RANGE | LOAN TERM | LOAN AMOUNT | BEST FOR |
---|---|---|---|---|
SoFi | 7.99%–23.43% (with autopay) | 2 to 7 years | $5,000–$100,000 | Overall personal loan |
LightStream | 5.73%–19.99% (with autopay) | 2 to 7 years | $5,000–$100,000 | Generous repayment terms |
Avant | 9.95%–35.99% | 2 to 5 years | $2,000–$35,000 | People with bad credit |
Marcus by Goldman Sachs | 6.99%–24.99% (with autopay) | 3 to 6 years | $3,500–$40,000 | Debt consolidation |
Best Egg | 5.99%–35.99% | 3 to 5 years | $2,000–$50,000 | Low APRs |
Upgrade | 7.46%–35.97% (with autopay) | 3 to 5 years | $1,000–$50,000 | Fast funding |
Happy Money | 5.99%–24.99% | 2 to 5 years | $5,000–$40,000 | Paying credit card debt |
Upstart | 5.60%–35.99% | 3 or 5 years | $1,000–$50,000 | Little credit history |
LendingClub | 8.30%–36.00% | 3 or 5 years | $1,000–$40,000 | Using a co-borrower |
PenFed | 7.74%–17.99% | 1 to 5 years | $600–$50,000 | Small loan amounts |
TD Bank | 6.99%–19.99% | 3 to 5 years | $2,000–$50,000 | Few fees |
PNC Bank | Starting at 6.49% (with autopay) | 6 months to 5 years | $1,000–$35,000 | In-person banking |
Details: Best personal loan lenders of September 2022
BEST OVERALL PERSONAL LOAN
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 7.99% –23.43%
- Loan amount:
- $5,000–$100,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- $30,000
BEST LOANS FOR GENEROUS REPAYMENT TERMS
LightStream
Apply on partner site
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 5.73%
- Loan amount:
- $5,000–$100,000
- Term lengths:
- 2 to 6 years
- Min. annual income:
- $50,000
BEST LOAN FOR PEOPLE WITH BAD CREDIT
Avant
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 9.95% –35.95%
- Loan amount:
- $2,000–$35,000
- Term lengths:
- 2 to 5 years
- Min. annual income:
- $14,400
BEST LOAN FOR DEBT CONSOLIDATION
Marcus
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 6.99% –24.99%
- Loan amount:
- $3,500–$40,000
- Term lengths:
- 3 to 6 years
- Min. annual income:
- $35,000
BEST FOR LOW APRS
Best Egg
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 5.99%
- Loan amount:
- $2,000–$50,000
- Term lengths:
- 3 to 5 years
- Min. annual income:
- $0
BEST FOR FAST FUNDING
Upgrade
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 7.46% –35.97%
- Loan amount:
- $1,000–$50,000
- Term lengths:
- 2 to 7 years
- Min. annual income:
- $30,000
BEST LOAN FOR PAYING CREDIT CARD DEBT
Payoff
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 5.99% –24.99%
- Loan amount:
- $5,000–$40,000
- Term lengths:
- 2 to 5 years
- Min. annual income:
- $30,000
BEST LOAN FOR LITTLE CREDIT HISTORY
Upstart
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 5.6% –35.99%
- Loan amount:
- $1,000–$50,000
- Term lengths:
- 3 to 5 years
- Min. annual income:
- $12,000
BEST LOAN FOR USING A CO-BORROWER
LendingClub
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 8.3% –36%
- Loan amount:
- $1,000–$40,000
- Term lengths:
- 3 to 5 years
- Min. annual income:
- $0
BEST LOAN FOR SMALL LOAN AMOUNTS
PenFed
Apply on partner site
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 7.74% –17.99%
- Loan amount:
- $500–$50,000
- Term lengths:
- 1 to 5 years
- Min. annual income:
- $0
BEST LOAN FOR FEW FEES
TD Bank
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 6.99% –19.99%
- Loan amount:
- $2,000–$50,000
- Term lengths:
- 3 to 5 years
- Min. annual income:
- $0
BEST LOAN FOR IN-PERSON BANKING
Check rate with Bankrate
- Min. credit score:
- Not disclosed
- Fixed APR From:
- 5.99%
- Loan amount:
- $1,000–$35,000
- Term lengths:
- 0 to 0 years
- Min. annual income:
- $0
What are current personal loan interest rates?
Personal loan interest rates currently range from about 3 percent to 36 percent, depending on your credit score. As of July 20th, 2022, the average personal loan interest rate is 10.60 percent. The better your credit score, the more likely you are to qualify for a personal loan with the lowest interest rate available. Compare personal loan offers to see what you are eligible for before applying for a personal loan.
How the 2022 Fed hike impacts personal loans
In order to combat inflation, the Federal Open Market Committee (FOMC) raised interest rates three-quarters of a percentage point in June and then again in July and September, making the new benchmark 3-3.25 percent.
These rate hikes impact personal loan interest rates. Most personal loans have fixed interest rates, so borrowers who already have personal loans do not need to worry. However, those looking to take out a personal loan may face higher interest rates.
The average personal loan interest rate has risen from 10.41 percent at the beginning of May 2022 to 10.73 percent as of September 14, 2022. Personal loan interest rates are likely to continue rising if the Fed raises the prime rate again at its next meeting.
Despite rising interest rates, there are things borrowers can do to cut down on costs when taking out personal loans. The rate you receive from a lender depends on factors within your control such as your credit score, desired loan amount and existing debts.
If you want to take out a personal loan and are looking to qualify for a better interest rate, here are some things you can do:
- Prequalify. If you are unsure what interest rate you might qualify for with a lender, the easiest way to find out is by prequalifying online. Most lenders allow you to do this without hurting your credit score. Prequalifying can help you decide between lenders as well as help you determine what you might need to work on.
- Check your credit. Your credit score impacts the rates and lenders you will likely qualify for. Knowing where you stand can help you figure out where to look. If you have less than stellar credit, bad credit loans tend to have reasonable interest rates for low credit borrowers.
- Pay off other debts. If you have time and are able to do so, it is smart to work down existing debt before taking on more. Having less debt when you apply for a personal loan improves your chances of getting a lower interest rate.
- Reduce your loan amount and repayment term. If you are able to, it may be smart to take out a smaller loan. The larger the loan you take out, the higher the interest rate is likely to be. In addition, larger loans come with longer repayment periods, which means you will pay more in interest over the life of the loan.
- Apply with a co-borrower. Applying for a loan with someone else may allow you to qualify for a lower interest rate, especially if your co-applicant has stronger credit.
- Shop around and compare rates. Each lender offers unique features, requirements and benefits. It is always important to do your research and prequalify with a few lenders before deciding on one. The best lender for someone else may not be best for you.
Average personal loan interest rates by credit rating
Average personal loan interest rates range from 10.3 percent to 12.5 percent for “excellent” credit scores of 720 to 850, 13.5 percent to 15.5 percent for "good" credit scores of 690 to 719, 17.8 percent to 19.9 percent for "average" credit scores of 630 to 689 and 28.5 percent to 32.0 percent for “poor” credit scores of 300 to 629.
CREDIT BAND | CREDIT SCORE RANGE | AVERAGE PERSONAL LOAN INTEREST RATE |
---|---|---|
Excellent Credit | 720–850 | 10.3%–12.5% |
Good Credit | 690–719 | 13.5%–15.5% |
Average Credit | 630–689 | 17.8%–19.9% |
Bad Credit | 300–629 | 28.5%–32.0% |
Excellent-credit loans
Excellent-credit loans are loans that are geared toward borrowers with excellent credit, typically with credit scores between 720 and 850. Having such a high credit score can come with many benefits, including average APRs as low as 10.3 percent — though some lenders go even lower. If your credit score falls into this range, look for excellent-credit lenders with low advertised rates and few fees.
Good-credit loans
Good-credit loans offer competitive interest rates and generally low fees. You're considered to have good credit if you have a credit score between 690 and 719, and with such a high score, you may qualify for average APRs as low as 13.5 percent. However, if you have good credit and are interested in a personal loan, shop around; you may be able to qualify for an even lower interest rate.
Fair-credit loans
If you have a fair or average credit score, it can be hard to find a personal loan that offers reasonable rates and fees. If your credit score falls between 630 and 689, your credit score is average. While this is considered a less-than-stellar score, you still may be able to qualify for a personal loan with an average APR as low as 17.8 percent. This list of the best personal loans for fair credit features lenders that cater to people with scores in the mid-600s.
Bad-credit loans
You can get approved for a loan even with bad credit, although you won't qualify for the best APRs. If your credit score is between 300 and 629, the best interest rate available could be around 28.5 percent. However, a bad-credit loan, even one with a rate close to 30 percent, is a better financial option than a payday loan; to see what rates are available, compare offers from a few bad-credit lenders.
Pros and cons of personal loans
Pros:
- Personal loans come in one lump sum, usually with a fixed interest rate, which helps keep monthly payments on track.
- You can get money quickly, sometimes within as little as a day, depending on the lender you choose.
- Many are unsecured loans, which means you don't need collateral like your home or car to borrow money.
- Interest rates are much lower than those of payday loans, which charge upward of 400 percent.
- Flexibility and versatility allow you to use a personal loan for almost any purchase.
- Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay the loan.
- You may have easer payments if you conslidate debt and have a single, fixed-rate monthly payment instead of several accounts to manage.
Cons:
- APRs are generally higher than those of some secured loans.
- If you have a low credit score, you might not qualify.
- Some lenders charge fees, like origination, late and prepayment fees. The lower your credit score, the more likely you are to have a lender that charges more fees.
- Some lenders don’t allow co-signers, which means you can only use your credit score and history to qualify.
- You’re adding another bill to your monthly payments, which might stretch or even break your budget.
- You can increase your overall debt if you use it to consolidate your debt but continue to spend on your credit cards.
- Personal loans often have higher monthly payments than the minimum payment on credit cards, which can make it harder to manage your finances.
Types of personal loans and their uses
With the exception of loans from a few niche lenders, like Payoff, most personal loans can be used for any purpose. Personal loans come in a few common categories.
FAQs about personal loans
Methodology
To select the top personal loan lenders, Bankrate considers 15 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Of the 32 lenders reviewed, 12 made Bankrate's list of best personal loans. Each lender has a Bankrate rating, which consists of three categories. These categories include:
- Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
- Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
- Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
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