If you take out a personal loan, you typically pay interest to a lender in exchange for borrowing money. When shopping for a loan, the interest rate is one of the most important factors to consider. A lower rate can save you hundreds or even thousands of dollars over the life of the loan.
But what counts as a "good" rate depends on your credit score, income, the loan amount, repayment term and other factors.
Understanding how personal loan rates are determined — and how your offer compares with current rates — can help you decide whether a lender is offering you the best deal.
What is an interest rate?
An interest rate is the percentage of a loan that a lender charges you in return for allowing you to borrow money. It's usually shown as a percentage, such as 5% or 10%, and does not include any fees or other upfront costs.
An interest rate can be fixed, meaning it stays the same throughout the repayment period, or variable, which can increase or decrease based on market changes. Most personal loans have fixed interest rates, which provide borrowers with predictable monthly payments.
Your interest rate is chiefly based on your credit profile and debt load, so the rate a bank quotes you will likely be different from the rate offered to someone else trying to borrow the exact same amount.
Interest rate vs. APR
You may see a bank list an annual percentage rate, or APR, instead of an interest rate. The APR is the interest rate plus certain loan fees, like an application or origination fee. It's expressed as a yearly percentage.
Currently, APRs on standard personal loans range from about 5.96% to 35.99%, according to credit bureau Experian, depending on your credit score, debt-to-income ratio and other factors.
Just looking at the interest rate can be misleading: A loan advertised at 8% and a 5% origination fee can be more expensive than a 9% loan with no fee. (If there are no upfront fees or other finance charges, the APR and interest rate will be the same. )
Here's an example: A lender offers you $10,000 with a 10% fixed interest rate and a 36-month repayment term, and a 5% origination fee that's deducted from your loan total. The interest rate is 10% but the APR is approximately 13.6%.
- Loan amount: $10,000
- Interest rate: 10% (fixed)
- Term: 36 months
- Origination fee: $500
- Amount you actually receive: $9,500
- Monthly payment: $322.67
- Total of 36 payments: $11,616
- APR: Approximately 13.6%
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
6.30% - 35.99%
$1,000 to $75,000
9.95% to 35.99%
$2,000 to $35,000
What's a good interest rate on a personal loan?
According to data from the Bankrate Monitor National Index, the average interest rate for personal loans on Sept. 16, 2026, was 12.29% for a borrower with a 700 FICO Score borrowing $5,000 with a 36-month repayment term.
A good interest rate on a personal loan depends heavily on the borrower's credit profile. A consumer with excellent credit (FICO Score 800–850) can expect to be offered a lower rate than someone with fair credit (FICO 580–669).
In general, if you're comparing interest rates, a rough benchmark for a personal loans is:
- Below 7%: Excellent
- 7–9%: Very good
- 9–11%: Good/competitive
- 11–13%: Around the current market average
- 13–16%: High
- 16%+: Very high
Because they incorporate certain upfront fees, APRs are considered a better indicator of the total cost of borrowing. If you're looking at APRs, a broad guideline is:
- Below 8%: Excellent
- 8–10%: Very good
- 10–12%: Good/competitive
- 12–15%: Around the current market average
- 15–20%: High
- 20%+: Very high
Where can I get the best rate on a personal loan?
The lender with the best rate depends on your personal credit profile, the amount and purpose of your loan, and their eligibility requirements.
Banks: A traditional bank might be the first place you think of when you need to borrow money, although they only originated about 11% of unsecured personal loans in Q1 of 2026, according to data from TransUnion.
PNC Bank and TD Bank both have low rates for borrowers with good credit, and neither charges an origination fee.
We like that PNC Bank has no origination fee and a lower maximum APR than many online competitors. You'll need a linked PNC Bank checking account to get your loan funds deposited quickly, however.
- Highest APR tops out lower than many competitors.
- No origination fee.
- Can add co-borrowers.
- Funds often available the next business day if deposited into an existing PNC checking account.
- Over 2,000 physical branches.
- Maximum loan amount is only $35,000.
- Not available nationwide.
We like that TD Bank doesn't charge origination fees and applicants can pre-qualify with no damage to their credit score. But the lender only operates in a limited number of states, mostly on the East Coast.
- Competitive APRs for borrowers with good credit.
- No origination fee.
- Funds available in as little as one business day.
- Doesn't offer an autopay discount.
- No co-signers or joint applications.
- No direct-pay option for debt consolidation loans.
- Not available in all states.
Credit unions: Because they're member-owned nonprofits, credit unions often have fewer fees and more credit score flexibility. Federally chartered credit unions like PenFed Credit Union are subject to a cap 18% APR cap on personal loans.
PenFed is worth considering if you have good-to-excellent credit and want a straightforward personal loan with competitive rates and few fees. We like that you don't have to be a PenFed member to apply — you can join during the application process.
- Approves loans as small as $600.
- Membership available with a $5 deposit in a savings account.
- Can pick up a physical check at a branch.
- Can apply with a co-borrower.
- Maximum loan amount is $50,000.
- Generally need good to excellent credit.
- Most branches are in D.C., Maryland and Virginia.
Finance companies: These institutions lack the full range of financial products available from a bank or credit union, and often specialize in issuing credit and loans. Unlike fintech lenders, they may still have large branch networks and manual underwriting. With more than a thousand branches across the U.S., OneMain Financial specializes in personal loans for near-prime and subprime borrowers.
We like that OneMain accepts borrowers with bad credit and offers secured loans and fast funding. However, its minimum APR is on the high side and the $30,000 financing maximum may be too low if you need a larger loan.
- Approves applicants with bad/fair credit
- Same-day funding available
- Can apply with collateral
- Co-applicants allowed
- High origination fee
- High minimum interest rate
- No autopay discount
- Co-signers not allowed
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Fintech lenders: These online lenders use algorithmic data and automation to reduce fees, speed up approval times and offer options for non-traditional borrowers. SoFi and LightStream are two of our top picks for online loans, with low rates for borrowers with good credit and repayment terms of up to seven years.
No origination fees required, no early payoff fees, no late fees
- No origination fees required, no early payoff fees, no late fees
- Unemployment protection if you lose your job
- DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
- Can have more than one SoFi loan at a time (state-permitting)
- May accept offer of employment (to start within the next 90 days) as proof of income
- Co-applicants may apply
- Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
- No co-signers allowed (co-applicants only)
Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or, Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
We like that LightStream offers competitive APRs, no late or origination fees and long loan term options. But you can't prequalify and the loan minimum may be too high if you only need to borrow a small amount.
- Same-day funding available.
- Loan amounts up to $100,000.
- No origination fee or late fee.
- The minimum loan amount is $5,000.
- Prequalification not available.
- No option to pay your creditors directly.
How to compare personal loans
Shopping around and comparing offers from multiple lenders is the best way to make sure you're getting the best deal. While the interest rate is a key consideration when shopping for a loan, there are other factors that can impact the overall cost of borrowing. These include:
Fees and closing costs: Origination fees, application fees and other charges can significantly increase the total cost of the loan. Some lenders charge a prepayment penalty if you pay off the loan early.
Repayment term: Longer terms may mean smaller monthly payments, but generally result in more interest paid over the life of the loan.
Monthly payment: While you may be drawn to a low APR, it's important to understand whether the amount you have to pay each month fits into your budget.
Discounts: Some lenders offer rate discounts for automatic payments, existing customers or other qualifying conditions.
Collateral requirements: A secured loan may offer lower rates but put your car, home or other property at risk of repossession if you default on the loan .
FAQs
What credit score do I need to get a good interest rate on a personal loan?
Your credit score isn't the only factor but, generally, a FICO Score of at least 700 puts you in the position to qualify for a good rate on a personal loan. While FICO Scores go as high as 850, a score of 760 should qualify you for the most competitive rates.
What should I look for besides interest rate when shopping for a personal loan?
The most important factor in considering a loan is the total cost of borrowing — not just the interest rate, but any origination or application fees, late fees and prepayment penalties. You should also consider the available loan terms, since a longer term will usually mean paying more in interest over time.
Should I compare interest rates or APRs?
Since the APR includes certain loan fees, it's generally more useful for comparing the overall cost of borrowing than simply looking at the interest rate. Be sure to ask the lender if there are additional fees not included in the APR.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
The CNBC Select Recommends newsletter delivers practical money tips each week along with expert-picked financial product recommendations. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every personal loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Don't miss
Fixed rates from 8.74% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% SoFi Plus interest rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or, Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 02/23/26 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal.
Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
