Best Personal Loan Rates of July 2026

Personal Loan Rates

Personal loan rates can vary based on the lender, your creditworthiness, the loan terms and broader economic conditions, so the rate you're offered may differ from the national averages below.

Average Personal Loan Rates by Loan Term

Shorter loan terms tend to carry lower rates than longer ones because the lender takes on less risk when it gets repaid sooner. A shorter term also means higher monthly payments, so it's worth weighing the trade-off between a lower rate and a payment that fits your monthly budget.

If your income and expenses can support a larger payment, choosing the shorter term could save you a meaningful amount in total interest over the life of the loan. Here's a look at average rates by term length:

Source: Curinos data as of June 2026

Learn more: How to Choose the Best Loan Term for Your Needs

Average Personal Loan Rates by Credit Score

Your FICO^® Score is one of the biggest factors lenders weigh when they set your rate. Building your credit scores before you apply, even by a modest amount, could help you qualify for a lower rate.

Also, keep in mind that lenders look at more than just your credit score when you apply. Paying down credit card balances and avoiding new credit applications in the months before you apply can strengthen the rest of your application. That said, here's what you can generally expect based on your credit score:

Source: Curinos data as of June 2026

Learn more: Things Lenders Look at Besides Your Credit Score

Average Personal Loan Rate by State

Average rates vary from state to state due to differences in state regulations, competition among lenders and local economic factors. Even so, you're not limited to lenders based in your home state, and comparing offers from banks, credit unions and online lenders across the country can help you find a lower rate than the local average.

Here's a look at average rates based on where you live:

Average Personal Loan Rate by State

Source: Curinos LLC as of June 2026

What Is a Personal Loan?

A personal loan is a type of installment loan that gives you a lump sum of money upfront, which you repay in fixed amounts over a set period of time. Most personal loans are unsecured, meaning you don't need to put up collateral to get approved.

Once approved, you can use the funds for just about anything, though some lenders may have rules against using the proceeds for things like investments or business expenses.

Personal loans typically charge fixed interest rates ranging from 6% to 36%, and repayment terms are usually somewhere between one and seven years. Some lenders may charge an origination fee, typically ranging from 1% to 10%, which is deducted before you receive your loan funds.

Personal loans are available from banks, credit unions and online lenders, and rates, fees and terms can vary widely between them. It's worth getting quotes from several lenders before you commit.

Learn more: How Does a Personal Loan Affect Your Credit Score?

Personal Loan Calculator

A personal loan calculator can help you estimate your monthly payment and total interest cost before you apply, based on the loan amount, interest rate and repayment term you enter.

Using a calculator before you apply can help you compare how different loan amounts, rates and terms would affect your budget so you can narrow down which offers are actually worth pursuing. A lower monthly payment on a longer term isn't always the better deal once you factor in the total interest you'd pay, so it's worth running the numbers for a few different scenarios.

Example: A $10,000 loan with a 36-month term and a rate of 13.5% would come with a monthly payment of $339 and roughly $2,217 in total interest by the time it's paid off. Stretching that same $10,000 loan to a 60-month term at a rate of 15% would lower the monthly payment to about $238, but total interest would climb to roughly $4,274 because you'd be paying interest for two extra years.

Personal loan calculator

Pros and Cons of Personal Loan

A personal loan can be a useful tool when it's the right fit, but it's worth weighing the trade-offs for your specific situation before you apply. Here's a look at both the potential benefits and drawbacks.

Who Should Get a Personal Loan?

Whether a personal loan makes sense depends on your specific reason for getting a loan, your income and how confident you are in your ability to keep up with a fixed monthly payment.

Consider a personal loan if:

• You have a specific expense to cover, such as consolidating higher-interest credit card debt, paying for a home improvement project or covering an unexpected expense.
• You have a stable income and a clear plan to repay the loan on schedule.
• You don't expect to need additional access to funds later.

A personal loan may not be the right fit if:

• You're not confident you can keep up with fixed monthly payments given your current budget.
• Your credit scores are low, and the costs don't outweigh the benefits.
• You want to borrow money for an unnecessary expense, such as a vacation or luxury item.

How to Choose the Best Personal Loan

Personal loan rates, fees and terms can vary significantly even among borrowers with similar credit profiles, so comparing multiple lenders is the best way to find a loan that best fits your needs.

Consider these factors as you shop around:

• APR: The annual percentage rate reflects the interest rate plus any fees, giving you a more complete picture of the loan's true cost than the interest rate alone. Lenders typically lead with this rate, so you won't have to go digging for it.
• Fees: In particular, watch out for origination fees. If you have great credit, focus on lenders that don't charge one at all. Also, while rare, some lenders may charge a prepayment penalty if you pay off the loan early.
• Loan term: Look for a term that fits comfortably within your monthly budget, then compare how that choice affects the total interest you'll pay. A shorter term usually raises your monthly payment but lowers the total interest, while a longer term lowers your payment but adds to the total interest over the life of the loan.
• Funding speed: If you need the money quickly, ask how long it typically takes the lender to disburse funds once your loan is approved. Some lenders offer same-day or next-day funding, while others may take up to a week. If you're planning to use the proceeds to consolidate debt, some lenders may offer to pay off your balances directly.
• Prequalification: Many lenders let you check your estimated rate with a soft credit inquiry before you formally apply. Soft inquiries remain on your credit reports for up to two years, and do not affect credit scores. The prequalification process can make it easier to compare several offers without a commitment.
• Customer service and reviews: Research how the lender handles customer service and disputes, especially if you anticipate needing help managing your account or requesting a hardship option down the road.

Alternatives to Personal Loans

Depending on your situation, other borrowing options might cost less or fit your needs better than a personal loan. Here are some potential alternatives to consider, depending on your situation and credit score:

Personal Loan Alternatives Compared

0% Intro APR Credit Card

A 0% intro APR credit card offers a temporary period ranging from six to 21 months, during which qualifying purchases or balance transfers don't accrue interest. This can work well if you can repay the balance before the promotional period ends.

However, the standard APR that follows is typically much higher than a personal loan rate, and carrying a balance past that point could end up costing more than a personal loan would have from the start.

HELOC

A home equity line of credit (HELOC) lets you borrow against your home's equity as needed during a draw period, often 10 years, and repay what you borrow, plus interest, during a separate repayment period.

Because your home secures the line of credit, you risk losing your home if you fall behind on payments, but you may qualify for a meaningfully lower rate than an unsecured personal loan would offer.

Home Equity Loan

A home equity loan gives you a lump sum upfront with a fixed rate, similar to a personal loan, but it's secured by your home rather than unsecured. This can make the trade-off worthwhile for larger expenses like a home renovation, though missing payments puts your home at risk in a way an unsecured personal loan does not.

Personal Line of Credit

A personal line of credit lets you borrow money as you need it up to a set credit limit, and you pay interest only on the amount you've actually drawn rather than the full limit. This can make sense for ongoing or uncertain expenses. You can pull only what you need at any given time instead of committing to a lump sum upfront.

Paycheck Advance App

Paycheck advance apps offer small-dollar loans that essentially allow you to access money you've already earned. They typically don't charge interest, and repayment usually happens automatically on or around your next payday.

That said, some apps require monthly subscriptions or may charge a fee for expedited funding, which can result in high APRs.

Common Personal Loan Terms to Know

Personal loan offers can include unfamiliar terminology, and understanding these terms can help you compare lenders more confidently and avoid surprises once you've signed your loan agreement:

• APR: A loan's APR combines your interest rate with certain fees so you can see the total cost of borrowing in one figure.
• Cosigner: Adding a cosigner to your application means someone else agrees to repay the loan if you don't, which could help you qualify for a better rate.
• Debt-to-income ratio (DTI): Lenders calculate your DTI by dividing the sum of your monthly debt payments by your gross monthly income. This helps them gauge whether you can afford a new loan payment.
• Fixed rate: Your interest rate stays the same for the entire life of the loan, so your monthly payment won't shift from the first bill to the last.
• Origination fee: Some lenders charge an origination fee to cover the costs of processing and disbursing your loan. It's typically deducted from the loan amount before the money reaches your account.
• Prequalification: Many lenders let you check your estimated rate and terms with a soft credit inquiry, so you can shop around without affecting your credit score.
• Principal: A loan's principal is the amount you borrowed and still must repay, not including interest.
• Secured loan: A secured personal loan requires collateral to get approved. Options may include a savings account, investments or another valuable asset.
• Unsecured loan: You won't need to put up collateral for this type of loan, though the lender can still pursue collection if you default on your payments.

Frequently Asked Questions

Shop Around to Find Your Best Rate

Personal loan rates and other terms can vary widely, depending on where you look. As a result, it pays to compare multiple offers before you commit. With Experian, you can compare personal loan offers matched to your credit profile on our loan comparison platform, making it easier to shop terms side by side.

Before you apply, it's also worth checking your free Experian credit report and FICO^® Score to see where you stand and whether there's room to improve your credit first.