Personal loan rates for March 2, 2022: Rates remain stable
Personal loan interest rates remain unchanged from last week at 10.28 percent on Wednesday, March 2nd. The nationwide average interest rate for personal loans has been constant at 10.28 percent since the beginning of 2022. This rate has not changed since the slight increase of 10.27 percent at the end of 2021.
Bankrate conducts a weekly survey of personal lenders and monitors interest rates week-to-week to track changes. The average interest rate for personal loans has remained constant in December 2021 and increased from 10.27 percent to 10.28 percent in the first two weeks of 2022.
Comparison of the best personal loan rates
While personal loan interest rates have remained stable on average, different lenders offer different interest rates and overall experiences. Below are interest rates from some of the best personal lenders of 2022. These lenders performed well in the 2022 Bankrate Awards, each winning a superlative category.
| lender | APR | loan amount | minimum credit rating | Bankrate superlative |
|---|---|---|---|---|
| Luminous flux | 4.98% | $5,000 to $100,000 | 700 | Best for DIY and debt consolidation |
| Marcus from Goldman Sachs | 6.99% | $3,500 to $40,000 | 660 | Best Online Lender |
| TD bank | 6.99% | $2,000 to $50,000 | 660 | Preferably at a bank |
| upstart | 8.94% | $1,000 to $50,000 | none | Best for bad credit borrowers |
| best egg | 5.99% | $2,000 to $50,000 | 640 | Best for borrowers with a fair credit rating |
| figure | 5.75% | $5,000-$50,000 | 670 | Best for borrowers with good credit |
| axos | 6.49% | $5,000-$50,000 | 720 | Best for borrowers with excellent credit |
Personal loan rates based on creditworthiness
The interest rates you can get depend on your overall credit rating. Below are average interest rates for borrowers ranging from excellent to poor credit, based on Bankrate data.
| credit-worthiness | Average lending rate |
|---|---|
| Excellent (720-850) | 10.3%-12.5% |
| Good (690-719) | 13.5%-15.5% |
| Good (690-719) | 13.5%-15.5% |
| Fair (630-689) | 17.8%-19.9% |
| Bad (300-629) | 28.5%-32.0% |
How to compare personal loan rates
When applying for a personal loan, potential borrowers should keep a few things in mind so they can get the best rates and personal lender for their situation:
- Compare interest rates and fees: You may want to compare the range of APRs offered by some lenders, but you may not qualify for the lowest advertised rate. The interest rate you qualify for depends on your credit rating and other approval requirements. If you can, pre-qualify for more specific pricing. You should also consider any fees that affect the overall cost of your loan.
- Pre-qualify if possible: Many lenders allow borrowers to pre-qualify for loans so you can submit your financial information and learn the exact interest rates you qualify for. Knowing your exact quote from a lender can help you decide if it’s best for you and allow you to more accurately compare interest rates.
- Consider the purpose of your loan: Every lender is different, and which lender is right for you will depend on the purpose of your loan and your specific needs. Personal loans have a variety of purposes, from debt consolidation to financing large purchases like weddings and vacations. Which lender is right for you depends on how you want to use your loan.
- Consider loan amounts and repayment options: The amount of money you need to borrow could limit your choice of lenders as different lenders allow different loan spreads and repayment period options. If you need to borrow a large sum of money, you may want to find a lender with long repayment terms and a wide range of loan amounts.
This is how you get a lower personal loan interest rate
There are a few strategies you can use to improve your chances of getting a cheaper loan rate:
- Sign up for automatic payment: Some lenders offer an interest rebate to borrowers who use Autopay.
- Choose a shorter term: The longer your repayment period, the higher your interest rate is likely to be. If you are financially able to pay off the loan in less time, your interest rate will likely be lower.
- Improve your credit score before applying: The better your credit rating, the lower your personal loan interest rate should be. You can take steps to improve your credit score over time.
- Get a co-signer with strong credit: Some lenders allow you to borrow loans with a co-signer. When you take out a loan with someone with a good credit history, you stand a better chance of getting lower interest rates.
Comparison of the best personal loan rates
While personal loan interest rates have remained stable on average, different lenders offer different interest rates and overall experiences. Below are interest rates from some of the best personal lenders of 2022. These lenders performed well in the 2022 Bankrate Awards, each winning a superlative category.
| lender | APR | loan amount | minimum credit rating | Bankrate superlative |
|---|---|---|---|---|
| Luminous flux | 4.98% | $5,000 to $100,000 | 700 | Best for DIY and debt consolidation |
| Marcus from Goldman Sachs | 6.99% | $3,500 to $40,000 | 660 | Best Online Lender |
| TD bank | 6.99% | $2,000 to $50,000 | 660 | Preferably at a bank |
| upstart | 8.94% | $1,000 to $50,000 | none | Best for bad credit borrowers |
| best egg | 5.99% | $2,000 to $50,000 | 640 | Best for borrowers with a fair credit rating |
| figure | 5.75% | $5,000-$50,000 | 670 | Best for borrowers with good credit |
| axos | 6.49% | $5,000-$50,000 | 720 | Best for borrowers with excellent credit |
Personal loan rates based on creditworthiness
The interest rates you can get depend on your overall credit rating. Below are average interest rates for borrowers ranging from excellent to poor credit, based on Bankrate data.
| credit-worthiness | Average lending rate |
|---|---|
| Excellent (720-850) | 10.3%-12.5% |
| Good (690-719) | 13.5%-15.5% |
| Good (690-719) | 13.5%-15.5% |
| Fair (630-689) | 17.8%-19.9% |
| Bad (300-629) | 28.5%-32.0% |
How to compare personal loan rates
There are many factors to consider when applying for a personal loan. Here are some of the things to think about before choosing a personal loan lender:
- Compare interest rates and fees: You may want to compare the range of APRs offered by some lenders, but you may not qualify for the lowest advertised rate. The interest rate you qualify for depends on your credit rating and other approval requirements. If you can, pre-qualify for more specific pricing. You should also consider any fees that affect the overall cost of your loan.
- Pre-qualify if possible: Many lenders have a prequalification option. This generally results in a gentle credit check, so pre-qualifying with some lenders to see what your interest rate and loan details would be will not affect your credit score. Pre-qualification will help you more accurately compare interest rates when shopping.
- Consider the purpose of your loan: Every lender is different, and which lender is right for you will depend on the purpose of your loan and your specific needs. Personal loans have a variety of purposes, from debt consolidation to financing large purchases like weddings and vacations. Which lender is right for you depends on how you want to use your loan.
- Consider loan amounts and repayment options: The amount of money you need to borrow could limit your choice of lenders as different lenders allow different loan spreads and repayment period options. If you need to borrow a large sum of money, you may want to find a lender with long repayment terms and a wide range of loan amounts.
This is how you get a lower personal loan interest rate
There are a few strategies you can use to improve your chances of getting a cheaper loan rate:
- Sign up for automatic payment: Some lenders offer an interest rebate to borrowers who use Autopay.
- Choose a shorter term: The longer your repayment period, the higher your interest rate is likely to be. If you are financially able to pay off the loan in less time, your interest rate will likely be lower.
- Improve your credit score before applying: The better your credit rating, the lower your personal loan interest rate should be. You can take steps to improve your credit score over time.
- Get a co-signer with strong credit: Some lenders allow you to borrow loans with a co-signer. When you take out a loan with someone with a good credit history, you stand a better chance of getting lower interest rates.