Average Personal Loan Rates for April 2024 - NerdWallet (2024)

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The average personal loan interest rate for consumers with good credit (690 to 719 credit score) is 14.84%, according to aggregate, anonymized offer data from users who pre-qualified for a personal loan through NerdWallet.

Like home and other consumer loans, personal loan annual percentage rates are currently higher than usual. But many factors determine your rate, including shifts in the economy, the type of lender you apply with and your credit profile.

» MORE: Compare the best personal loan rates

Here are current average personal loan rates, plus more information about how lenders decide your rate.

Average online personal loan rates

Borrower credit rating

Score range

Estimated APR

Excellent

720-850.

12.64%

Good

690-719.

14.84%

Fair

630-689.

18.69%.

Bad

300-629.

21.74%.

Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from March 1, 2024, through March 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.

APR ranges for online lenders

Here are APR ranges on loans from online lenders that NerdWallet reviews and rates.

Lender

APR range

Achieve

8.99% - 35.99%.

Avant

9.95% - 35.99%.

Best Egg

8.99% - 35.99%.

Happy Money

11.72% - 17.99%.

Laurel Road

9.49% - 24.25%.

LendingClub

8.98% - 35.99%.

LendingPoint

7.99% - 35.99%.

LightStream

6.99% - 25.49%.

Mariner Finance

15.49% - 35.99%.

OneMain Financial

18.00% - 35.99%.

Oportun

29.00% - 35.95%.

Prosper

8.99% - 35.99%.

Reach

14.30% - 35.99%.

Rocket Loans

9.12% - 29.99%.

SoFi

8.99% - 29.99%.

Universal Credit

11.69% - 35.99%.

Upgrade

8.49% - 35.99%.

Upstart

7.80% - 35.99%.

Zable

12.95% - 35.99%.

» MORE: Best online loans

Average bank personal loan rates

In February 2024, the average APR on a two-year loan from a commercial bank was 12.49%, according to the Federal Reserve.

APR ranges for bank lenders

Here are APR ranges on loans from banks that NerdWallet reviews and rates.

Lender

APR range

American Express

5.91% - 17.97%.

Axos

11.29% - 21.34%.

Citibank

10.49% - 19.49%.

Discover

7.99% - 24.99%.

PNC

7.49% - 30.49%.

Santander

6.99% - 24.99%.

TD Bank

8.99% - 23.99%.

Truist

8.19% - 17.24%.

USAA

9.34% - 17.74%.

U.S. Bank

8.24% - 21.49%.

Wells Fargo

7.49% - 23.74%.

» MORE: Best bank loans

Average credit union personal loan rates

In December 2023, the average APR on a three-year loan from a credit union was 10.78%, according to the National Credit Union Administration.

APR ranges for credit union lenders

Here are APR ranges on loans from credit unions that NerdWallet reviews and rates.

Lender

APR range

Alliant

11.79% - 29.49%.

First Tech

8.99% - 18.00%.

Navy Federal

7.49% - 18.00%.

PenFed

7.99% - 17.99%.

» MORE: Learn the benefits of credit union loans

Are current personal loan rates high?

Overall, personal loan rates are the highest they’ve been in years. Commercial bank loan rates are at a high not seen since before the Great Recession, according to Fed data.

Unlike mortgages, personal loans aren’t directly affected by occasional, incremental changes in the Federal Funds rate — lenders can tolerate those hikes without increasing their rates.

However, persistently rising rates coupled with recession fears prompted lenders to raise their rates in late 2022 and early 2023. Forecasters continue to debate the likelihood of a recession in 2024, and lenders generally don’t lower rates when the economic outlook is so uncertain.

Though Federal Reserve officials have indicated they intend to lower the Fed rate in 2024, which could aid in lowering personal loan interest rates, no cuts have been made as of April.

Average online personal loan rates over time

Average bank personal loan rates over time

Average credit union personal loan rates over time

🤓Nerdy Tip

Rates are high for most types of financing right now, including credit cards and mortgages. Compare personal loans and alternatives, like 0% APR credit cards and home equity financing, to find the most affordable one.

Why lenders charge different personal loan rates

Most personal loans are unsecured and don’t require collateral to secure the loan. Instead, lenders use borrowers’ financial and credit profiles to make approval decisions and determine their rates. Most lenders tailor their APR ranges to the type of borrower they want to attract.

Lenders that accept good- or excellent-credit borrowers may charge lower rates because those consumers’ credit reports show a strong history of repaying credit cards and other loans. Lenders that target mostly bad-credit consumers, with credit histories showing missed payments, may charge higher rates to make up for the added risk.

Online lenders: Online lenders often narrow their target borrower pool to a couple of credit segments — fair- and bad-credit borrowers, for example, or good- and excellent-credit borrowers — and price their loans accordingly.

Banks: Large banks usually work with good-credit borrowers and offer the lowest rates to existing customers because they know how those borrowers manage credit and debt and may see them as less risky.

Credit unions: Credit unions are an exception: They often accept fair- or bad-credit borrowers but charge relatively low rates. Federal credit unions cap personal loan APRs at 18%. Because they work exclusively with their members, credit unions are able to consider the borrower’s membership history when determining their rate.

» MORE: Compare personal loans

How is your personal loan rate decided?

Here are four factors that are likely to affect your personal loan rate.

  1. Credit score: Many lenders set minimum credit score requirements and may publish this information on their websites. This can help you rule out lenders with credit score requirements well above or below yours.

  2. Payment history: Your repayment history toward other loans and credit cards is a top factor that lenders use to determine your rate. A long history of on-time payments to multiple creditors will work in your favor, while a history of missed and late payments may contribute to a higher rate.

  3. Income: Most lenders like to see that you have at least enough money to make monthly loan payments and cover your other bills. Having extra cushion in your budget each month may show the lender that you’re a low-risk borrower and get you a lower rate.

  4. Debt-to-income ratio (DTI): Your DTI is the percentage of your monthly income that goes toward other debts, such as car, student or mortgage loan payments. Lenders try to avoid providing loans that will overextend borrowers’ budgets, so many like to see a DTI at or below 50%, but lower is better.

» MORE: Personal loan requirements

Pre-qualify to compare offers

Lenders don’t usually divulge their underwriting techniques, but many major banks, credit unions and online lenders offer pre-qualification. This process allows you to check your potential loan amount, rate and repayment term without a hard credit pull.

Average Personal Loan Rates for April 2024 - NerdWallet (2024)

FAQs

Average Personal Loan Rates for April 2024 - NerdWallet? ›

When will interest rates go down? The Federal Reserve has indicated that there's a good chance it would cut rates later in 2024.

Will personal loan rates go down in 2024? ›

When will interest rates go down? The Federal Reserve has indicated that there's a good chance it would cut rates later in 2024.

What is the average personal loan interest rate right now? ›

Average Overall Personal Loan Rates
This week's ratesLast week's rates
Average overall rate21.11%20.90%
Average low rate11.58%11.18%
Average high rate30.64%30.62%
Highest rate99.99%99.99%
1 more row
4 days ago

Is 7% high for a personal loan? ›

A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)

How much would a $50,000 personal loan cost per month? ›

Here's what a $50,000 loan would cost you each month
8.00%
Two-Year Repayment$2,261.36/month, $4,272.75 in interest over time
Seven-Year Repayment$779.31/month, $15,462.10 in interest over time
10-Year Repayment$606.64/month, $22,796.56 in interest over time
Jan 20, 2024

What are the predictions for interest rates in 2024? ›

Mortgage rate predictions 2024

The MBA's forecast suggests that 30-year mortgage rates will fall into the 6.4% to 6.7% range throughout the rest of 2024, and Fannie Mae is forecasting the same. NAR believes rates will average 7.1% this quarter and fall to 6.5% by the end of 2024.

What is the interest rate for a personal loan in 2024? ›

According to a Bankrate study, the average personal loan interest rate is 12.22 percent as of April 24, 2024. However, the rate you receive could be higher or lower, depending on your unique financial circumstances. Personal loan rates vary based on creditworthiness, the lender and the borrower's financial stability.

What is too high of an interest rate for a personal loan? ›

Avoid loans with APRs higher than 10% (if possible)

According to Rachel Sanborn Lawrence, advisory services director and certified financial planner at Ellevest, you should feel OK about taking on purposeful debt that's below 10% APR, and even better if it's below 5% APR.

Which bank is best for a personal loan? ›

List of Banks Offering Best Personal Loan in India
  • HDFC Bank. Max. Loan Amt. Up to ₹40L. Rate of Interest. ...
  • Axis Bank. Max. Loan Amt. Up to ₹40L. Rate of Interest. ...
  • Kotak Mahindra Bank. Max. Loan Amt. Up to ₹10L. Rate of Interest. ...
  • IDFC First Bank. Max. Loan Amt. Up to ₹1Cr. Rate of Interest. ...
  • ICICI Bank. Max. Loan Amt. Up to ₹50L.

Which bank has the best personal loan rates? ›

Summary: Best Personal Loans From Banks
CompanyForbes Advisor RatingCurrent APR range
Discover3.57.99% to 24.99%
Wells Fargo3.57.49% to 23.24%
PNC Bank3.0Rates vary by zip code
Citibank3.010.49% to 19.49%
2 more rows

Can you negotiate a personal loan interest rate? ›

To negotiate a lower interest rate on your personal loan, gather information on current market rates, compare offers from different lenders, and highlight your creditworthiness and financial stability during the negotiation process.

Can I ask my bank for a lower interest rate on a personal loan? ›

The personal loan interest rate play an important role in determining the EMIs and total repayment amount. The interest rate of your personal loan depends on your financial report and credit score. You can negotiate your interest rate to adjust your EMI to make it more manageable.

Is 700 a good credit score for a personal loan? ›

A good credit score is considered to be 700 or higher, while anything above 750 is excellent.

How much is a $20,000 loan for 5 years? ›

Advertising Disclosures
Loan AmountLoan Term (Years)Estimated Fixed Monthly Payment*
$20,0005$415.07
$25,0003$771.81
$25,0005$514.57
$30,0003$926.18
13 more rows

How much income do I need for a 20k loan? ›

Some lenders state they require stable, consistent income, while others list a minimum income requirement. For example, Discover requires a household income of at least $25,000. Finally, personal loan lenders consider your DTI ratio or your ratio of debt to gross income.

What credit score do I need for a $50,000 loan? ›

You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.

Will interest rates stay high in 2024? ›

As recently as their last meeting on March 20, the officials had projected three rate reductions in 2024, likely starting in June. But given the persistence of elevated inflation, financial markets now expect just one rate cut this year, in November, according to futures prices tracked by CME FedWatch.

Will Bank interest rates go up in 2024? ›

While the federal funds rate climbed steadily in 2022 and 2023, rates have flattened and are expected to fall at some point this year. The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

What will interest rates be in 2025? ›

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.

Will interest rates go down again in 2025? ›

Driving the news: The median Fed official now expects interest rates to be somewhat higher in 2025 and 2026 than they did in December — anticipating fewer rate cuts will be justified in the coming two years. The median projection for the longer-run rate also ticked up, to 2.6% from 2.5%.

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