When you take out a personal loan, the interest rate determines how much you'll pay. A lower rate can mean smaller monthly payments and less interest over the life of your loan.
But getting the best rate isn't automatic — it depends on your credit history and income, how much debt you're carrying, the amount you're borrowing and the lender you choose.
The good news is that you can improve your chances of qualifying for a competitive rate. Here's what to know about getting the best interest rate on a personal loan and potentially reducing your borrowing costs.
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?
What qualifies as a good rate depends heavily on your credit profile, loan term and amount, lender and market conditions.
If you're comparing interest rates, here's a rough benchmark for a personal loans:
- Below 7%: Excellent
- 7–9%: Very good
- 9–11%: Good/competitive
- 11–13%: Around the current market average
- 13–16%: Above average
- 16%+: High
Keep in mind that the interest rate is just the cost of borrowing the loan principal. The annual percentage rate (APR) includes the interest, plus any loan fees you might be charged. When shopping for loans, be sure to also pay attention to the APR since it can give you a more complete picture of the full cost of borrowing.
The average APR from commercial banks in Q2 2026 was 11.86% for a 24-month personal loan, according to Federal Reserve data.
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
How to get the best rate on a personal loan
From strengthening your credit profile to asking a friend or family member to apply with you, there are several ways to improve your chances of securing a favorable rate.
1. Raise your credit score
Lenders usually require a 580 FICO Score for approval and a 740 or higher for the most attractive rates. A higher credit score is more likely to earn you a lower rate and longer repayment terms and the ability to take out a larger loan.
You can check your credit history at AnnualCreditReport.com and get your score from your credit card issuer, although they rarely offer both FICO and VantageScore numbers from all three credit bureaus. CreditWise from Capital One provides free FICO Score 8 from TransUnion, while *Experian Boost® delivers your FICO 8 score from Experian.
A paid subscription to myFICO comes with access to your FICO scores from all three bureaus, including specialized versions used for mortgages and auto loans.
Experian Boost®
Cost
Free
Average credit score increase
13 points, though results vary
Credit report affected
Experian®
Credit scoring model used
Results will vary. See website for details.
How to sign up for Experian Boost:
- Connect the bank account(s) you use to pay your bills
- Choose and verify the positive payment data you want added to your Experian credit file
- Receive an updated FICO® Score
Learn more about eligible payments and how Experian Boost works.
FICO® Basic, Advanced and Premier
Cost
$29.95 to $39.95 per month
Credit bureaus monitored
Experian for Basic plan or Experian, Equifax and TransUnion for Advanced and Premier plans
Credit scoring model used
FICO
Dark web scan
Yes, for Advanced and Premier plans
Identity insurance
Yes, up to $1 million
Terms apply.
Improving your credit score before applying can make a significant difference in the rate you're offered. The best way to raise your credit score is to establish a history of making on-time payments, since payment history makes up 35% of your FICO Score.
Your credit utilization rate, or the amount of credit you're currently using compared to your total limit across all your accounts, accounts for 30% of your FICO Score. Paying down your bills will lower your rate, but you can also ask a credit card issuer to raise your limit.
2. Get a co-signer or co-borrower
Having a friend or family member with good credit who's willing to guarantee your loan can greatly improve the chances of qualifying for a lower APR. Depending on your score, a co-borrower with excellent credit can shave up to five percentage points off your rate, according to data from online lender Earnest.
A co-signer is responsible for paying off the loan if you default. A co-borrower has the same obligation, but applies for the loan alongside the primary borrower and may share legal ownership of any asset purchased with the loan.
Not all lenders allow you to add other individuals to your loan. Our top picks include Upgrade for joint loans and OneMain Financial for co-signers.
We like that Upgrade considers borrowers with fair credit and allows you to apply with a co-borrower, which can improve your odds of approval and receiving favorable rates. The maximum interest rate is on the high side, however.
- Accepts applicants with fair credit
- Approves loans of up to $75,000
- Discount for having creditors paid directly
- Funding in as little as one day
- Accepts co-borrowers
- High maximum interest rate
- Origination fee of up to 9.99%
- No physical branches
Why Upgrade is the best for financial literacy:
- Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
- Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
- Ability to sign up for free credit monitoring and weekly VantageScore updates
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.
3. Offer collateral
Securing your loan with collateral makes you less of a risk to a lender, although you can potentially lose the asset if you default. Both Oportun and Upstart allow borrowers to secure personal loans with a vehicle title, so long as there's no existing lien, the car is insured and it meets age and mileage standards and other requirements.
Open to borrowers with no credit history, especially if needing only a small loan.
- Open to borrowers with no credit history
- No early payoff fee
- Same-day funding available
- Loan amounts as small as $300
- May charge an administrative fee of up to 10% of the principal
- Not available in all states
We like that Upstart considers factors besides credit score, including education, income and employment history. However, co-signers aren't accepted.
- Accept applicants with bad or no credit
- Minimum APR is lower than many competitors'
- Approves personal loans up to $75,000
- Most loans are funded the next business day
- Origination fee of 0% to 10%
- Doesn't allow co-signers or co-borrowers
4. Compare offers from multiple lenders
Always try to get offers from at least three to five lenders to see what your options are. Avant and LendingPoint both allow applicants to get prequalified, so you view potential rates and loan terms without affecting your credit score.
This online lender approves borrowers with lower credit and income requirements than many competitors. We also like its speedy approval process and next-day funding, although it won't pay your creditors directly if you have a debt consolidation loan. The APR and origination fee for applicants with weak credit can be high, but the tradeoff may be worth it if you've been unable to get approved elsewhere.
- Lends to applicants with poor credit
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee of up 9.99%
- No autopay discount
- Doesn't offer direct payment to creditors for debt consolidation loans
- No co-signers or collateral
LendingPoint stands out for offering personal loans to borrowers with fair credit and for providing fast funding. Interest rates can be relatively high and borrowers may face origination fees, so the cost of borroweing can add up. Prequalify to get a estimate of the rate, terms, and borrowing amount you'll be approved for.
- Next-day funding available
- Personal loans start at just $1,000
- Direct pay to creditors available with debt consolidation loans.
- Origination fee can be up to 10%
- Doesn't allow secured loans or co-borrower or co-signers.
- Not available in all states.
Who's eligible to apply for a LendingPoint loan:
- You must be at least 18 years of age.
- You must be able to provide a U.S. federal, state or local government issued photo ID.
- You must have a social security number.
- You must have a minimum annual income of $40,000 (from employment, retirement or some other source).
- You must have a verifiable personal bank account in your name.
- You must live in one of the states where LendingPoint does business (excludes Nevada and West Virginia).
When comparing lenders, look at:
APR and fees: The APR is a better barometer of the overall cost of borrowing than the interest rate. While it's not uncommon for lenders to charge origination fees, especially if you have weak credit, you should be able to avoid a penalty for prepayment.
Approval requirements: Save time by narrowing your search to lenders with credit score and debt-to-income eligibility standards you can qualify for.
Loan amount: Make sure the lender can lend you enough to cover your expenses without forcing you to borrow more than you need.
Loan terms: Choose a lender with repayment terms that match your budget. A longer term means lower monthly payments but more interest over the life of the loan. Make sure the monthly payment fits your cash flow and budget.
Funding speed: If you need money quickly, look for lenders that advertise same-day or next-day funding.
Lender reputation and customer service: Research a lender's Better Business Bureau rating and its scores on consumer-review sites like Trustpilot. Make sure you're happy with the customer support hours and digital experience.
Where to find the best rates on a personal loan
The best lender for a personal loan will vary by borrower. Credit unions often have fewer fees and more credit score flexibility because they're member-owned and nonprofit. Federally chartered credit unions, like PenFed Credit Union, cap personal loan APRs at 18%.
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.
Online lenders use algorithmic data and automation to reduce fees and speed up approval times. Borrowers with good credit can get the most attractive rates: SoFi personal loans start at 6.49% APR, including a 0.25% autopay discount and a 0.25% discount for existing customers with direct deposit. LightStream also starts at 6.49% with a 0.25 autopay discount, and both lenders approve loans of up to $100,000 with no origination fees.
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 do lenders set personal loan rates?
Generally, lenders estimate how likely a borrower is to repay and price the loan accordingly. But each lender has its own formula — that's why two people applying for the same loan amount from the same lender can receive different rates — and why the same borrower can receive different offers from two different lenders.
The main factors lenders consider include:
Credit score and credit history: Higher credit scores suggest lower risk and can qualify borrowers for lower rates. Lenders may also look at payment history, existing accounts and any history of delinquencies, collections or bankruptcies.
Debt-to-income (DTI) ratio: This is your overall debt load divided by your gross monthly income, generally expressed as a percentage. Lenders typically approve personal loan borrowers with a DTI below 50%, although a DTI under 35% is generally considered ideal for securing the most competitive interest rate..
Income and employment status: To reduce the risk that you'll default, lenders want to see stable, verified earnings.
Loan amount and term: The amount you borrow and how long you take to repay it can affect the rate and overall cost.
State laws and other regulations: State usury laws can limit what lenders are allowed to charge in interest. In addition, credit unions that are part of the National Credit Union Administration typically cap personal loan APRs at 18%.
Individual factors: Each lender has its own underwriting models, pricing strategies, risk tolerances and business goals that will affect the rates it offers. Current economic conditions also influence rates.
FAQs
What credit score do I need to get the best interest 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. Your credit score isn't the only factor, however — lenders will also consider your debt-to-income ratio, the loan amount and other criteria when determining your rate.
Where can I get a personal loan?
You can get a personal loan from banks, credit unions and online lenders. There are also peer-to-peer platforms, cash-advance apps and even friends and family. The best option depends heavily on your credit score, income, how much you need to borrow and what you're using the money for.
Can you get a personal loan with bad credit?
It's possible to get approved for a personal loan with bad credit, but since you present a bigger risk, lenders will likely charge you higher interest rates. You may be able to use collateral or a co-borrower to secure approval and a more attractive rate, however.
Should you get a co-signer for a personal loan?
Co-signers can help you get approved for favorable rates if you aren't a creditworthy borrower. However, use co-signers cautiously since this person will be on the hook for your loan balance if you default — and this could wind up damaging your relationship with this person.
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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.
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Fixed rates from 6.49% APR to 35.49% APR. APRs 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 09/19/26 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.
