Published June 26, 2024 at 4:56 PM UTC
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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 rates
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)
Can I negotiate a lower interest rate on a personal loan?
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, such as:
Compare your options from as many lenders as possible to find good terms. Take advantage of interest rate discounts, such as autopayment discounts and loyalty discounts for existing account holders. Apply with a co-signer or co-applicant. Build your credit to qualify for better interest rates in the future.
If you're struggling to make payments, some lenders may offer assistance. Discover, for example, offers payment deferrals, temporary payment reductions, and extended repayment terms to borrowers facing financial hardship. You can also explore debt management plans and other debt relief options.
Will a personal loan hurt my credit?
When you apply for a personal loan, the lender will run a hard credit check to determine if you qualify. This may slightly lower your credit score (usually by 5 points or less). A hard credit check will 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.
What is the minimum interest rate for a personal loan?
Interest rates on personal loans can be as high as 36%, although some lenders offer rates below 6% to qualifying borrowers. Keep in mind that you generally need good to excellent credit to qualify for the lowest interest rates.
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.
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Ashley Harrison is the Associate Editor of Loans & Mortgages at USA TODAY Blueprint and has been working in the online finance industry since 2017. She is passionate about creating helpful content that demystifies complex financial topics. She previously worked at Forbes Advisor, Credible, LendingTree, and Student Loan Hero. Her work has been featured on Fox Business and Yahoo. Ashley is also an artist and a huge horror fan, and her short story “The Box” was produced by the award-winning NoSleep Podcast. In her spare time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.
Jamie Young is the Managing Editor of Loans and Mortgages at USA TODAY Blueprint. She has been a professional writer and editor for 12 years. Previously, she worked at Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has appeared in some of the most prestigious media outlets, including Yahoo, Fox Business, Time, CBS News, AOL, and MSN. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to play games, hang out with her two crazy cats (Detective Snoop and his Girl Friday), and maintain her ever-growing plant collection.
