Personal loan rates vary by lender, but the average APR is 9.41%. Each lender has its own qualifying factors, so it’s important to seek quotes from multiple companies to determine which factors will affect your rate. Some borrowers mistakenly assume that they will automatically qualify for a loan because they are a member at their respective bank or credit union.
The reality is that all borrowers must undergo an assessment to determine eligibility as well as APR. That is why it’s always a good idea to compare rates from multiple services to ensure you are getting the best loan available.
Lenders offer a wide array of loans, each with varying APRs. The approval process is largely the same, but lenders may differ in how they prioritize certain factors.
For example, some lenders may be more willing to provide loans to borrowers with bad credit (such as payday loans).
Similarly, certain types of institutions may offer personal loans at better rates than others.
Credit unions tend to have lower APRs because they place a premium on financial education. Most aim to teach their members about financial literacy and help them improve their credit ratings and remain in good borrower standing.
It’s important to compare personal loan rates between multiple lenders so that you can make the best financial decision for your personal situation. You could save thousands of dollars by doing some research before taking on a new debt.
Here are some of the best personal loan rates currently on the market:
- LightStream – Rates as low as 4.49% for excellent credit when you are enrolled in autopay.
- SoFi – Rates as low as 5.99% with a minimum credit score of 680.
- Upgrade – Rates as low as 5.94% for fair credit; loans up to $50,000.
- Best Egg – Rates as low as 5.99% for a 640 minimum FICO score.