This week's average personal loan rates: November 1, 2022 | Borrowers with poor credit see rates double
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If you have a poor credit score and are looking for a personal loan this week, you'll be facing average rates that are almost double what they were two weeks ago. Borrowers with fair credit scores have also seen rates rise.
Those increases come as all sorts of borrowing costs surge. The Federal Reserve has raised the federal funds rate five times in 2022 to try to tame surging inflation. Those higher rates ripple through the economy, resulting in higher interest rates on everything from mortgages and credit cards to auto and personal loans.
You can get a personal loan for many reasons. Most borrowers in recent months have been using them for debt consolidation. Other popular uses for the money include financing a home improvement project, paying a medical bill, and covering general household expenses.
Average personal loan rates
We've compiled a database of 28 personal loan products and averaged their rates so you know the current landscape. The higher your credit score, the more likely you'll qualify for a better rate.
| This week's rates | |
| Average overall rate | 19.69% |
| Average low rate | 9.81% |
| Average high rate | 30.00% |
| Highest rate | 99.99% |
| Lowest rate | 5.60% |
The lowest rate of the companies we track is from
The actual rate you can get is based on your creditworthiness and other aspects of your financial situation. Check your rates with any lenders you are interested in to see what you're eligible for.
Average personal loan rates by credit score
These rates are based on data from 157 borrowers who applied for loans and received rates.
Credit score | This week's average APR | Average APR from 2 weeks ago | Minimum APR | Maximum APR |
Excellent (720+) | 16.04% | 16.67% | 4.36% | 159.99% |
Good (660-719) | 23.13% | 25.09% | 4.10% | 157.85% |
Fair (620-659) | 53.78% | 36.70% | 18.24% | 229.00% |
Poor (<620) | 126.64% | 68.95% | 20.53% | 229.00% |
Average loan amount and term length by credit score
These loan amounts and term lengths are based on data from 157 borrowers who applied for loans and received rates.
Credit score | Average requested loan amount | Average loan term length | Maximum loan term length |
Excellent (720+) | $30,798.57 | 56.4 months | 240 months |
Good (660-719) | $15,710.17 | 50.0 months | 240 months |
Fair (620-659) | $9,602.33 | 38.6 months | 84 months |
Poor (<620) | $5,750.00 | 15.6 months | 60 months |
Percentage of borrowers by loan purpose
These loan purposes are based on data from about 161 borrowers who applied for loans and received rates. One borrower used loan funds to pay for baby expenses this week.
Loan purpose | Percentage of borrowers |
Debt consolidation | 47% |
Auto | 10% |
Other | 9% |
Home improvement | 8% |
Household expenses | 7% |
Large purchases | 4% |
Credit card refinancing | 3% |
Moving | 2% |
Boat | 2% |
Taxes | 2% |
Medical | 1% |
Wedding | 1% |
Special occasion | 1% |
Education | 1% |
Baby expenses | 1% |
Vacation | 1% |
Frequently asked questions
Does your credit score affect your personal loan rate?
Yes, your credit score has a direct impact on your rate. Generally, the higher your credit sc ors, the better rate you'll get.
Different lenders require different minimum credit scores for borrowers to qualify for a personal loan. Some lenders have no minimum at all, while others offer low rates only to borrowers with excellent credit histories.
How can I use the money from a personal loan?
Most lenders allow you to use a personal loan for almost any purpose you can think of, although it does depend based on the company. Some common uses include:
- Debt consolidation
- Credit card refinancing
- Home improvements
- Moving expenses
- Travel
- Car repair
- Medical bills
Every reason available isn't listed here, and you should reach out to your individual lender to ask about what choices it offers.
Should I get a personal loan?
Personal loans aren't right for every situation, nor every person. It can sometimes be hard to qualify, with strict credit score requirements. Personal loans also can carry high interest rates, which could mean there are better options out there.
For larger purchases that won't fit within a credit limit, a personal loan might be the right option. It's worth calculating the interest you'll pay, and carefully considering options like a secured loan to bring down the interest rate.