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The overall average interest rate for personal loans remains the same as last week at 21.14%.
Personal loans can be used to pay for everything from weddings to home improvements to dental work to income taxes. But most borrowers use personal loans to consolidate their debts. This purpose is so popular that some lenders, such as Happy Money and Reach Financial, specialize in debt consolidation loans.
Average interest rate for personal loans
To help you understand the current state of loans for all purposes, we've compiled a database of 28 different personal loan products and averaged their interest rates. If you have a higher credit score, you're more likely to get a lower interest rate.
Among the companies we track, the lowest interest rate is from American Express Personal Loan, with a minimum APR of 5.91%. The highest interest rate is from NetCredit, with a maximum APR of 99.99%.
Not all borrowers will necessarily qualify for the interest rates listed above. The interest rates that apply will vary depending on the borrower's credit score and other financial circumstances.
Compare personal loan rates
Next step: Find out if you can get pre-approved for a loan without affecting your credit score.
Average personal loan interest rates by credit score
These rates are based on data from borrowers who applied for loans and received interest rates on loans for any purpose.
Check out our insider picks for the best personal loans and best debt consolidation loans »
Percentage of borrowers by loan purpose
These loan purposes are based on data from 94 borrowers who applied for personal loans and received interest.
Average debt consolidation rate
We've compiled the following average interest rates from our database of 23 debt consolidation loan products from the past week.
Debt consolidation rates based on credit score
Generally, the higher your credit score, the lower your interest rate, but that's not always the case.
Average interest rates (APR), terms and loan amounts are provided by Even Financial through Fiona.com. The information is based on aggregated and anonymous offer data from Fiona's lender marketplace of financial service providers as of June 24. The data presented in this table only applies to lenders with APRs below 30% and is not specific to any particular lender or consumer.
best personal loan interest rates
Borrowers with good credit scores can usually get the lowest interest rates on personal loans, while those with poor credit scores are offered the highest personal loan interest rates.
Generally, a good loan interest rate is in the single digits. The lower the interest rate, the less you'll pay over the life of the loan. Below are the top three best APRs available among the 28 lenders we track.
American Express: 5.91%
Reach Financial: 5.99%
Lightstream Personal Loan: 6.99%
Frequently Asked Questions about Personal Loan Interest Rates
On average, borrowers receive an interest rate of about 21% on a personal loan, and interest rates vary depending on the loan term, credit score, and other financial circumstances.
American Express currently has the lowest interest rate on personal loans at 5.91%. However, interest rates on personal loans vary widely, with some borrowers paying as much as 99.99%. Interest rates are determined based on a variety of factors, including the borrower's creditworthiness and the term of the loan.
The interest rate a bank offers you on a personal loan will depend on your credit score, debt-to-income ratio, income, and other financial circumstances. If you've been offered a lower rate from another lender, you may be able to negotiate the interest rate with the bank.
Ryan Wanman, CEPF
Loan Reporter
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