Published June 26, 2024 at 4:56 PM UTC
Editor’s note: Blueprint may earn commission from affiliate partner links featured on this site. This commission does not influence editorial opinions or ratings. See full advertiser disclosure policy.
Ivan Nadaski, Getty Images
The interest rate you’re offered on a personal loan will vary depending on the lender as well as other factors like your credit score, repayment term, etc. Other strategies, like shopping around for multiple lenders and building your credit score, can also help you get a better rate.
Below are current interest rates for three- and five-year personal loans, along with average rates by credit score.
Today’s Personal Loan Rates
Currently, the average interest rate for a three-year personal loan is 15.69%, and the average interest rate for a five-year personal loan is 19.66%, which compares to last month’s rates of 15.66% and 19.88% for three-year and five-year loans, respectively.
3 year personal loan interest rates
Currently, the interest rate on a three-year personal loan is 15.69%, up from 15.48% last week, 15.66% last month and 14.63% last year, according to data from Credible.
A loan at today’s interest rates would cost $350.04 per month for every $10,000 borrowed, up from $349.01 last week.
5 year personal loan interest rate
According to data from Credible, interest rates on a five-year personal loan are currently at 19.66%, up from 18.76% last week, down from 19.88% last month but up from 18.09% last year.
A loan at today’s interest rates would cost you $263.05 per month for every $10,000 you borrow, up from $258.09 last week.
Today’s personal loan rates by credit score
Your credit score is one of the biggest factors lenders use when determining your interest rate, and generally, the higher your credit score, the lower your interest rate.
Frequently Asked Questions (FAQ)
Generally, you can’t negotiate your interest rate when applying for a personal loan, as lenders usually determine your rate and terms based solely on your application details and credit information, though some lenders may make exceptions, such as if you already have a relationship with the institution.
However, there are other options available to help you get a better interest rate. For example:
- Compare your options from as many lenders as possible to find a good deal.
- Take advantage of pricing discounts, such as autopay discounts and loyalty discounts for existing account holders.
- Apply together with a guarantor, or Co-applicant.
- Build trust You will be eligible for better rates in the future.
If you’re struggling to make payments, some lenders may also offer assistance. Discover, for example, offers payment deferrals, temporary payment reductions, and extended repayment terms to borrowers facing financial hardship. Debt Management Plan Or other Debt forgiveness option.
When you apply for a personal loan, the lender Strict credit check This inquiry is conducted when determining whether you qualify. This may result in a small drop in your credit score (usually 5 points or less). A hard credit inquiry can remain on your credit report for up to two years, but will only affect your credit score for up to one year.
Additionally, taking out a personal loan may lead to a better credit score in the long run. For example, making payments on time and diversifying your credit mix could help your score. Ultimately, a personal loan may have a positive impact on your credit than the negative impact it initially has.
Interest rates on personal loans can range up to 36%, although some lenders offer rates as low as 6% to qualified borrowers. Keep in mind that you generally need a good to excellent credit score to qualify for this loan. Minimum Charge Available.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and we recommend that you seek individual advice from a qualified professional for any specific financial decision. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. Any opinions, analyses, reviews, or recommendations expressed in this article are solely those of the Blueprint editorial staff. Blueprint adheres to strict editorial integrity standards. Information is accurate as of the publication date, but always check the provider’s website for the most up-to-date information.
