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The rate you’re offered on a personal loan will depend on the lender along with other factors like your credit score and repayment term. Other strategies could also help you get a better rate, such as shopping around with multiple lenders or building your credit score.

Here are today’s rates for three- and five-year personal loans as well as average rates by credit score.

Personal loan rates today

Overall, personal loan rates have trended in different directions. Today’s rate for a three-year personal loan is 15.58% while the rate for a five-year personal loan is 19.69%.

3-year personal loan rates

Personal loan rates for three-year loans increased to 15.58% from last week’s 15.46%, according to data from Credible. This is lower than last month’s 15.80% as well as higher than last year’s 14.68%.

At today’s rate, you’ll pay $349.50 each month for every $10,000 you borrow — more than last week’s $348.91.

5-year personal loan rates

Personal loan rates for five-year loans decreased to 19.69% from last week’s 19.88%, according to data from Credible. This is higher than last month’s 19.31% as well as higher than last year’s 17.64%.

At today’s rate, you’ll pay $263.22 each month for every $10,000 you borrow — down from last week’s $264.27.

Today’s personal loan rates by credit score

While lenders set their own rates based on market conditions, your credit score also plays a major role in determining the rate you’re offered. You’ll generally need good to excellent credit to qualify for the lowest advertised rates. A good credit score is usually considered to be a FICO score of at least 670.

Frequently asked questions (FAQs)

While the exact credit you’ll need for a personal loan will depend on the individual lender, you’ll generally need good to excellent credit to get approved. A good credit score is usually considered to be 670 or higher.

There are also several lenders that accept poor or fair credit scores. Just keep in mind that bad credit loans usually come with higher interest rates compared to good credit loans.

Whether it’ll be better for you to borrow from a bank or credit union will depend on your circumstances. Because credit unions are nonprofit organizations, they tend to offer lower rates on personal loans compared to banks and are also sometimes more lenient with credit score requirements. However, you’ll have to join the credit union to proceed with a loan. Every credit union has its own eligibility requirement for membership.

Banks, on the other hand, are for-profit institutions, and they generally charge higher rates and fees on personal loans compared to credit unions. But if you already have an account with a bank, you might be able to take advantage of loyalty rate discounts that could help you save money on interest charges. Additionally, almost anyone can open a bank account by providing identification and an initial deposit.

When you apply for a personal loan, the lender will perform a hard credit check while determining if you qualify. This can cause a slight drop in your credit score — usually by five points or less. While a hard credit inquiry can remain on your credit report for up to two years, it will only affect your credit score for a year at most.

Additionally, taking out a personal loan could help your credit score in the long run. For example, you could see an improvement in your score if you make on-time payments or are able to diversify your credit mix. Ultimately, a personal loan might have a greater positive impact on your credit compared to any initial negative effects.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Ashley Harrison is a 鶹ý Blueprint loans and mortgages deputy editor who has worked in the online finance space since 2017. She’s passionate about creating helpful content that makes complicated financial topics easy to understand. She has previously worked at Forbes Advisor, Credible, LendingTree and Student Loan Hero. Her work has appeared on Fox Business and Yahoo. Ashley is also an artist and massive horror fan who had her short story “The Box” produced by the award-winning NoSleep Podcast. In her free time, she likes to draw, play video games, and hang out with her black cats, Salem and Binx.

Jamie Young

BLUEPRINT

Jamie Young is Lead Editor of loans and mortgages at 鶹ý Blueprint. She has been writing and editing professionally for 12 years. Previously, she worked for Forbes Advisor, Credible, LendingTree, Student Loan Hero, and GOBankingRates. Her work has also appeared on some of the best-known media outlets including Yahoo, Fox Business, Time, CBS News, AOL, MSN, and more. Jamie is passionate about finance, technology, and the Oxford comma. In her free time, she likes to game, play with her two crazy cats (Detective Snoop and his girl Friday), and try to keep up with her ever-growing plant collection.

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