Borrowers with good credit seeking personal loans in the past seven days prequalified for rates that have been lower compared to the previous seven days of fixed-rate loans.
For borrowers with credit scores of 720 or maybe more who used the Credible marketplace to pick a lender between Dec. 2 and Dec. 9:
- Rates on 3-year fixed-rate loans averaged 11.16%, down from 11.26% the seven days before and 11.28% annually ago.
- Rates on 5-year fixed-rate loans averaged 13.94%, down from 14.31% the prior seven days and 14.75% annually.
Personal loans are becoming popular to consolidate and pay off credit card debt and other loans. They can be used to cover unexpected expenses like medical bills, look after an important purchase, or fund do-it-yourself projects.
Personal loan interest rates fell for both 3-year and 5-year fixed terms. While rates for a 3-year term only saw a 0.10% decrease, 5-year rates dropped by 0.37%. Rates for a 5-year term also have seen more dramatic daily fluctuations, sometimes changing by almost a full percentage point from 1 day to the next. Borrowers can take advantage of major interest savings with whether 3-year or 5-year fixed-rate personal loans right now.
Whether a personal loan is right for you often depends on multiple factors, including the rate you can qualify for. Comparing multiple lenders and their rates could help ensure you receive the perfect personal loan for your needs.
It’s always advisable to compare shops on sites like Credible to understand how much you qualify for and choose the best selection.
Listed here are the latest trends in personal loan interest rates from the Credible marketplace, updated monthly.
Personal loan weekly rates trends
The chart above shows average prequalified rates for borrowers with credit scores of 720 or maybe more who used the Credible marketplace to pick a lender.
For November 2024:
- Rates on 3-year personal loans averaged 11.32%, down from 11.33% in October.
- Rates on 5-year personal loans averaged 14.25%, up from 13.85% in October.
Rates on personal loans vary considerably by credit score and loan term. If you’re curious about what personal loan rates you might qualify for, you can use an on-the-web tool like Credible to compare options from different private lenders. Checking your rates won’t affect your credit score.
In November, the typical prequalified rate selected by borrowers was:
- 92% of borrowers with credit scores of 780 or above selected a 3-year loan
- 04% of borrowers with credit scores below 600 selected a 5-year loan
All Credible marketplace lenders offer fixed-rate loans at competitive rates. Because lenders use different techniques to evaluate borrowers, you should request personal loan rates from multiple lenders to help you compare your options.
Current personal loan rates by credit score
The interest rate can differ based on factors such as your credit score, which type of personal loan you’re seeking, and the loan repayment term.
As shown in the chart above, an excellent credit score can indicate a lowered interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms.
Getting a lowered interest rate
Many factors influence the interest rate a lender might offer you on a personal loan. But you can take steps to enhance your chances of a lowered interest rate. Here are a few tactics to try.
Increase credit score
Generally, people with higher credit scores qualify for lower interest rates. Steps that could assist you in improving your credit score over time include:
Pay bills on time. Payment history is the most crucial aspect of your credit score. Pay all of your bills promptly for the total amount due.
Check your credit report. Look at your credit report to ensure there are no errors. If you learn errors, dispute them with the credit bureau.
Decrease your credit utilization ratio. Paying down credit card debt can improve this important credit scoring factor.
Avoid opening new credit accounts. Only apply for and open credit accounts you need. Too many hard inquiries on your credit report in a quick amount of time could lower your credit score.
Select a shorter loan term
Personal loan repayment terms can vary from several years. Generally, shorter terms come with lower interest rates because the lender’s money is at risk for a shorter time.
If your financial situation allows, applying for a shorter-term could help you score a lowered interest rate. Remember, the shorter-term doesn’t just benefit the lender — by selecting a shorter repayment term, you’ll pay less interest over the life of the loan.
Get a cosigner
You may well be acquainted with the concept of a cosigner if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, finding a cosigner with good credit could help you secure a lowered interest rate.
Just remember, if you default on the loan, your co-signer will likely be on the hook to repay it. And cosigning for a loan could also affect their credit score.
Compare rates from different lenders.
Before applying for a personal loan, it’s advisable to shop around and compare offers from several different lenders to obtain the lowest rates. Online lenders typically offer the most competitive rates – and it could be quicker to disburse your loan than a brick-and-mortar establishment.
