Quick Answer
What personal loan rate should I expect? Lender APRs in September 2026 run from about 6% for the strongest borrowers to about 36%. The average 5-year (60-month) rate was about 11.7% for credit scores of 740 and up and about 18.7% for scores of 620-639 (Curinos data reported by Experian, September 2026). Bankrate's national average was 12.44% APR on September 23, 2026.
Moving from a 620-639 score to 720-739 cuts the average 60-month rate from 18.74% to 13.04%, which saves about $2,700 in interest on a $15,000, 5-year loan. Even a smaller improvement that moves you up one score band can lower your rate.
Key Takeaways
- The average 60-month rate runs from about 11.7% (740+) to about 18.7% (620-639); individual offers range from about 6% to 36%
- Moving from a 620-639 score to 720-739 saves about $2,700 in interest on a $15,000, 5-year loan at average rates
- Credit unions average lower APRs than banks (10.64% vs 12.00% on 36-month unsecured loans, NCUA, fourth quarter of 2025), and federal credit unions cap rates at 18%
- Use pre-qualification (soft pull) to compare rates without hurting your credit
- Pay down credit card balances below 30% utilization for the fastest score boost
Quick Rate Estimate by Credit Score
Use these September 2026 averages to estimate your rate before applying (60-month loans; Curinos data reported by Experian, September 2026): about 11.7% for scores of 740 and up, 13.0% for 720-739, 14.3% for 700-719, 16.0% for 680-699, 17.4% for 660-679, 17.9% for 640-659 and 18.7% for 620-639. Below 620 no average is published and approval is harder; some lenders charge up to about 36%. Your own offer can land well above or below the average for your band. Section 4 shows what each average costs per month on a $15,000 loan.
Calculate your full payment with the personal loan calculator →
2026 Personal Loan Rate Overview
The Federal Reserve raised its benchmark rate on September 16, 2026, its first increase since 2023, after holding it steady earlier in the year. Understanding the current rate environment helps you evaluate whether an offer is competitive.
Current Rate Environment
- Federal funds rate: 3.75-4.00% (raised by 0.25 point at the Federal Reserve's September 16, 2026 meeting; influences all lending rates)
- Average personal loan rate: 12.44% APR (Bankrate national average, September 23, 2026)
- Rate trend: Rising -- the September 2026 increase was the Fed's first since 2023, and higher benchmark rates tend to raise new-loan pricing over time
Average Rates by Credit Score (September 2026)
| Credit Score | 36-Month Average APR | 60-Month Average APR |
|---|---|---|
| 740+ | 10.82% | 11.69% |
| 720-739 | 11.97% | 13.04% |
| 700-719 | 13.19% | 14.29% |
| 680-699 | 14.76% | 15.99% |
| 660-679 | 16.12% | 17.36% |
| 640-659 | 17.21% | 17.89% |
| 620-639 | 17.97% | 18.74% |
| Below 620 | No published average; offers up to about 36% or a declined application | |
Rates by Credit Score Tier (Detailed)
Your credit score is the single biggest factor determining your personal loan rate. Here is what each band's September 2026 average 60-month rate costs on a $15,000 loan over 5 years:
| Credit Score | Average APR (60-Month) | Monthly Payment* | Total Interest* |
|---|---|---|---|
| 740+ | 11.69% | $331 | $4,879 |
| 720-739 | 13.04% | $342 | $5,496 |
| 700-719 | 14.29% | $351 | $6,077 |
| 680-699 | 15.99% | $365 | $6,881 |
| 660-679 | 17.36% | $376 | $7,542 |
| 640-659 | 17.89% | $380 | $7,800 |
| 620-639 | 18.74% | $387 | $8,218 |
*Based on a $15,000 loan with a 5-year term at each band's average rate (Curinos data reported by Experian, September 2026). Actual rates vary by lender and can fall well above or below the average.
The Real Cost Difference
On a $15,000 loan over 5 years, the difference between the 740+ average (11.69%) and the 620-639 average (18.74%) is about $3,339 in extra interest, more than a fifth of the amount borrowed. Offers well above the average cost far more: at 26% APR the interest alone is about $11,946.
What Each Tier Means for You
These labels are FICO's own score ranges (myFICO). The averages come from the Curinos table above.
Exceptional and Very Good (740-850): You qualify for the best rates. Lenders compete for your business, and you have maximum negotiating power. Aim for an offer below the 740+ average -- about 10.8% for 36 months and 11.7% for 60 months in September 2026.
Good (670-739): You qualify for competitive rates; in September 2026 the 700-739 averages ran about 1.4 to 2.6 points above the 740+ average for 60-month loans. Most lenders approve you with favorable terms.
Fair (580-669): You can get approved, but rates are significantly higher: the 620-679 averages ran from about 16.1% to 18.7%. If you can wait until your score moves up a band before borrowing, you may save on interest. Paying down credit card balances is the fastest way to boost your score.
Poor (below 580): Traditional personal loans are difficult to obtain, and no average rate is published for this range. A co-signer can dramatically improve your rate. Consider secured loans or credit-builder options, focus on rebuilding credit, and beware of predatory lenders with extreme rates.
What Affects Your Personal Loan Rate
While credit score is the primary factor, lenders consider multiple elements when determining your specific rate:
Credit Score
Your credit score reflects your credit management history. FICO scores (used by most lenders) are calculated from:
- Payment history (35%): On-time payments are the most important factor
- Credit utilization (30%): Keep balances below 30% of credit limits
- Length of credit history (15%): Older accounts help your score
- Credit mix (10%): Mix of credit cards, loans, mortgage
- New credit inquiries (10%): Recent applications can lower score temporarily
Debt-to-Income Ratio
Your DTI compares monthly debt payments to gross monthly income. A lower ratio generally means better offers. Each lender sets its own limit and no official cut-off exists for personal loans, so ask what yours uses. If your ratio is high, you may be declined or asked for a co-signer; consider a debt payoff strategy to lower it first.
Calculate Your DTI
Add monthly debt payments (credit cards, loans, mortgage) and divide by gross monthly income. Example: $1,500 payments / $5,000 income = 30% DTI. Learn more in our DTI ratio guide.
Employment and Income
- Steady employment: A stable job history shows lenders you can keep paying
- Verifiable income: Lenders ask for pay stubs or bank statements
- Self-employed: Lenders usually ask for tax returns to verify income
Loan Term
- Shorter terms: In September 2026 the 36-month average was lower than the 60-month average in every credit band (see the table above)
- Longer terms: Lower monthly payments, but a higher rate and more total interest
Lender Comparison: Who Has the Best Rates?
Different lender types offer different advantages. If you are considering consolidating multiple debts into one loan, see our debt consolidation guide for a full breakdown. Here is how they compare:
| Factor | Online Lenders | Banks | Credit Unions |
|---|---|---|---|
| Average APR, 36-month unsecured loan | No official average published | 12.00% | 10.64% |
| Best For | Fast funding, comparison shopping | Existing customers, large loans | Best rates, relationship banking |
Source: NCUA, Credit Union and Bank Rates, fourth quarter of 2025 (the latest published): average rates on 36-month unsecured loans. No government source publishes an average for online lenders. Loan amounts, funding speed and credit requirements differ from lender to lender, so check each lender's own terms. Checked September 2026.
Best Lender by Situation
For excellent credit: Credit unions typically offer the lowest average rates (see the NCUA figures above). Online lenders and banks can also be competitive, so compare pre-qualified offers.
For fair or poor credit: Some online lenders specialize in borrowers with lower credit scores. Compare the APR, which includes any origination fee, before you accept.
For fast funding: Many online lenders fund quickly after approval; ask each lender for its funding time.
For low fees: Look for lenders with no required origination fee, and compare APRs rather than interest rates so any fee is counted.
Credit Union Tip
Credit unions average lower APRs than banks (10.64% vs 12.00% on 36-month unsecured loans, NCUA, fourth quarter of 2025), and federal credit unions cap loan rates at 18% (a ceiling the NCUA Board has extended to September 10, 2027). You'll need to become a member first, but many have easy eligibility requirements based on location, employer, or a small donation to a qualifying organization.
How to Get a Better Rate
Whether you need a loan now or can wait, there are strategies to improve your rate:
Quick Wins (1-30 Days)
- Pre-qualify with multiple lenders: Use soft-pull pre-qualification to compare rates from 3-5 lenders without affecting your credit score.
- Negotiate with competing offers: If you have multiple offers, ask lenders to match or beat the best rate.
- Check for relationship discounts: Some lenders cut the rate for existing customers or members -- SoFi, for example, lists a 0.25-point member discount.
- Enable autopay: Many lenders discount the rate for automatic payments -- for example 0.25 point at SoFi, while LightStream prices its non-autopay (invoice) option 0.50 point higher.
- Consider a co-signer: Someone with excellent credit can help you qualify for dramatically lower rates.
- Choose a shorter term: In September 2026, 36-month loans averaged lower rates than 60-month loans in every credit band.
Medium-Term Strategies (1-3 Months)
- Pay down credit card balances: Reducing utilization below 30% (the CFPB's guideline), and ideally under 10% (myFICO), can boost your score quickly. Use a credit card payoff calculator to plan your approach. This is the fastest way to improve credit.
- Dispute credit report errors: Check all three bureaus for errors. Companies generally must investigate a dispute within 30 days (CFPB), and removing inaccurate negative items can improve your score.
- Become an authorized user: Being added to someone's credit card with long positive history may help your score once the account appears on your report.
- Avoid new credit applications: Each hard inquiry lowers your score temporarily. Wait until after your loan is approved.
Long-Term Strategies (3-12 Months)
- Build payment history: Make every payment on time -- payment history is 35% of a FICO score, the largest factor.
- Let negative items age: Recent negatives hurt more than older ones, and their impact fades with time. Most negative information can stay on your report for up to seven years (CFPB).
- Keep old accounts open: Don't close old credit cards - they help your average account age.
Timing Matters
If you can wait until your credit score moves up a band, you may save significantly on interest. However, if you need funds urgently, don't delay - you can always refinance later when your credit improves.
Pre-Qualification: Shop Without Hurting Credit
Pre-qualification lets you compare rates from multiple lenders without affecting your credit score.
Soft Pull vs. Hard Pull
- Soft pull (pre-qualification): Does NOT affect your credit score. Shows estimated rates based on basic information. Use this to compare lenders.
- Hard pull (formal application): Costs most people fewer than five points, per FICO's own guidance (opens in new tab), and the effect is temporary. Triggers when you submit a formal application for final approval.
How to Rate Shop Effectively
- Check your credit score: Use free services like Credit Karma or your bank's app to know where you stand.
- Pre-qualify with 3-5 lenders: Use soft-pull pre-qualification tools to see estimated rates.
- Compare total costs: Look at APR, monthly payment, and any origination fees.
- Submit formal applications: Apply only to your top 1-2 choices. FICO scores group multiple inquiries within a 14- to 45-day window only for mortgage, auto and student loans, so each personal loan application can count as its own hard inquiry.
Smart Rate Shopping
Pre-qualify with multiple lenders in one session. Write down each offer's APR, monthly payment, origination fee, and funding time. Then make an informed decision before submitting formal applications.
How We Calculate These Figures
The monthly payment and total interest figures above start from a loan amount, an APR within the range typical for the stated credit score tier, and a loan term, then apply the standard amortization formula that divides the loan into equal monthly payments covering both principal and accruing interest. The rate ranges themselves come from published lender data rather than a formula — actual approvals depend on your full application, not credit score alone.
Frequently Asked Questions
A "good" rate depends on your credit score. In September 2026 the average 36-month rate was about 10.8% for scores of 740 and up, 12.0% for 720-739 and 13.2% for 700-719 (Curinos data reported by Experian, September 2026). A rate below the average for your score band is a good offer. Always compare multiple lenders to ensure you're getting a competitive offer.
Yes, you can get a personal loan with a 650 credit score (fair credit). In September 2026 the average rate for scores of 640-659 was about 17.2% for a 36-month loan and 17.9% for 60 months (Curinos data reported by Experian, September 2026); individual offers vary widely, and some lenders charge up to about 36%. While rates are higher than for excellent credit, many lenders specialize in fair credit borrowers. Online lenders often have more flexible requirements. Consider improving your score before borrowing if possible, or use a co-signer to qualify for better rates.
Use pre-qualification tools that perform soft credit pulls. Most major lenders offer pre-qualification that shows estimated rates without affecting your credit score. You can check rates with multiple lenders using soft pulls, then only submit formal applications to lenders offering the best rates.
If you can wait until your score moves up a band, you could save thousands in interest: at September 2026 averages, moving from 620-639 to 720-739 saves about $2,700 on a $15,000, 5-year loan. Focus on paying down credit card balances below 30% utilization and making all payments on time. However, if you need funds urgently, don't delay - you can always refinance later when your credit improves.
No, pre-qualification is not a guarantee of approval. It's an estimate based on limited information. When you submit a formal application, the lender performs a more thorough review including income verification, employment confirmation, and a hard credit pull. Your final rate may also differ from the pre-qualified estimate.
Your Next Steps
- Check your credit score using free services (Credit Karma, your bank's app, or annualcreditreport.com)
- Identify your credit tier using the tables above to set rate expectations
- Pre-qualify with 3-5 lenders using soft-pull tools to compare offers
- Compare total costs including APR, monthly payment, and origination fees
- Calculate your estimated payment with our personal loan calculator
Ready to Calculate Your Payment?
Use our personal loan calculator to see your estimated monthly payment based on your expected rate, loan amount, and term.
Sources
- Consumer Financial Protection Bureau - What Is a Personal Installment Loan? (opens in new tab)
- Federal Reserve - Consumer Credit Data (opens in new tab)
- Experian - Best Personal Loan Rates (Curinos averages by credit score, updated September 10, 2026) (opens in new tab)
- NCUA - Credit Union and Bank Rates, Q4 2025 (opens in new tab)
- NCUA - Board Extends Loan Interest Rate Ceiling (February 6, 2026) (opens in new tab)
- Bankrate - Personal Loan Rate Surveys (opens in new tab)
- Bankrate - Average Personal Loan Interest Rates (opens in new tab)
- Federal Reserve - FOMC Statement, September 16, 2026 (target range raised to 3.75-4.00%) (opens in new tab) and Open Market Operations (first increase since July 2023) (opens in new tab) -- checked September 28, 2026
- Federal Reserve - Monetary Policy: What Are Its Goals? How Does It Work? (how federal funds rate changes pass through to the rates lenders charge households) (opens in new tab) -- checked September 28, 2026
- myFICO - Rate Shopping and the "less than five points" hard-inquiry impact (opens in new tab)
- myFICO - What Is a FICO Score? (score ranges and the five factor weights) (opens in new tab) -- checked September 27, 2026
- myFICO - What Should My Credit Utilization Ratio Be? (below 10%) (opens in new tab) -- checked September 27, 2026
- CFPB - How Do I Get and Keep a Good Credit Score? (utilization no more than 30%) (opens in new tab) -- checked September 27, 2026
- CFPB - How Do I Dispute an Error on My Credit Report? (30-day investigation) (opens in new tab) -- checked September 27, 2026
- CFPB - How Long Does Negative Information Remain on My Credit Report? (generally seven years) (opens in new tab) -- checked September 27, 2026
- SoFi - Personal Loans (0.25% autopay and 0.25% member rate discounts) (opens in new tab) and LightStream - Rates (non-autopay option 0.50 point higher) (opens in new tab) -- lender disclosures checked September 27, 2026
Important Disclaimer
Disclaimer: This content provides estimates for educational purposes only. Actual rates depend on your specific credit profile, income, and the lender you choose. Rates and terms are subject to change. This is not a loan offer or guarantee of approval. Consult with lenders directly for specific rate quotes. Data reflects market conditions as of September 2026.
Content reviewed by Mark at Markco Labs. Learn more about our accuracy standards.