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Rates on personal loans are inching up. But you can still snag a reasonable rate, whether you’re looking to finance a home remodeling project, vehicle, unexpected bills or temporarily need to improve your cash flow.
From February 21 to February 25, the average fixed interest rate on a three-year personal loan was 10.80% for borrowers with a credit score of 720 or higher who prequalified on Credible.com’s personal loan marketplace. That’s up 0.35% from the previous week, according to Credible.com. The average rate on a five-year personal loan rose last week from 12.62% to 13.10%.
The most qualified borrowers generally receive the best rates. In fact, well-qualified borrowers may receive a rate that’s significantly lower than average. The rate you receive depends on numerous factors, including your creditworthiness and the loans available through your chosen lender.
Related: Best Personal Loans
Comparing Personal Loan Rates
You can get started with the comparison process by prequalifying for a loan. Consider looking for lenders who offer prequalification online, which can make the process much more convenient. Prequalifying can provide you with a more precise view of the rate you’ll receive from a particular lender, since they’ll prescreen you by performing a soft credit check (which…
