Personal loan interest rates dropped over the last seven days for 3-year loans, falling by 0.56 percentage points. On the other hand, 5-year loans crept up by 0.08 percentage points. Interest rates for both loan terms remain significantly higher than they were this time last year. But borrowers can take advantage of interest savings with a 3- or 5-year personal loan right now. Both loan terms offer interest rates that are much lower than higher-cost borrowing options such as credit cards.
Whether a personal loan is right for you often depends on multiple factors, including what rate you can qualify for. Comparing multiple lenders and their rates could help ensure you get the best possible personal loan for your needs. to understand how much you qualify for and choose the best option for you.
Here are the latest trends in personal loan interest rates from the Credible marketplace, updated weekly. The chart above shows average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender. Rates on 3-year personal loans averaged 23.07%, up from 22.99% in July.Rates on personal loans vary considerably by credit score and loan term.
Depending on factors such as your credit score, which type of personal loan you’re seeking and the loan repayment term, the interest rate can differ. As shown in the chart above, a good credit score can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms. Many factors influence the interest rate a lender might offer you on a personal loan. But you can take some steps to boost your chances of getting a lower interest rate. Here are some tactics to try.