Yusra3
VIP Contributor
When taking out a personal loan, the interest rate you receive greatly impacts how affordable the borrowed money really is over the repayment period. Personal loan interest rates can vary considerably based on your credit profile and the lender.
According to the latest data from the Federal Reserve, the average interest rate on 24-month personal loans is currently 11.23% across all commercial banks. For the highest credit tiers with scores of 760+, benchmark rates tend to fall between 7-10%.
However, averages only tell part of the story. Consumers with exceptional credit may qualify for personal loan APRs as low as 5-6% from some lenders. On the opposite end, subprime borrowers with poor credit might see rates of 25% or higher from certain lenders.
In addition to your credit score, debt-to-income ratio, income level, loan amount, and repayment term can all impact the personal loan rate you're ultimately approved for. The lending institution itself and whether you're an existing customer can make a difference as well.
While average figures provide a snapshot, the only way to know your exact rate is to shop around and get personalized quotes from multiple personal loan lenders based on your unique financial profile.
According to the latest data from the Federal Reserve, the average interest rate on 24-month personal loans is currently 11.23% across all commercial banks. For the highest credit tiers with scores of 760+, benchmark rates tend to fall between 7-10%.
However, averages only tell part of the story. Consumers with exceptional credit may qualify for personal loan APRs as low as 5-6% from some lenders. On the opposite end, subprime borrowers with poor credit might see rates of 25% or higher from certain lenders.
In addition to your credit score, debt-to-income ratio, income level, loan amount, and repayment term can all impact the personal loan rate you're ultimately approved for. The lending institution itself and whether you're an existing customer can make a difference as well.
While average figures provide a snapshot, the only way to know your exact rate is to shop around and get personalized quotes from multiple personal loan lenders based on your unique financial profile.
