Published March 11, 2024 at 1:13 PM UTC
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Personal loan interest rates are set by individual lenders based on market conditions. However, the actual interest rate you're offered will also depend on a variety of factors, including your credit score and repayment period.
Below are today's personal loan interest rates and average interest rates by credit score.
Overall, personal loan rates are trending in different directions. Currently, the interest rate on his 3-year personal loan is 14.40% and has increased little by little, but the interest rate on his 5-year personal loan has decreased to 21.12%.
3 year personal loan interest rate
Three-year personal loan interest rates are currently 14.40%, up from 14.02% last week, according to Credible data. This was down from 14.84% last month, but up significantly from 11.63% last year.
Taking out a loan at current interest rates would cost you $343.72 per month for every $10,000 you borrow. This is an increase from last week's $341.87.
5 year personal loan interest rate
Personal loan interest rates for five-year loans fell to 21.12% from 22.15% last week, according to Credible data. This is lower than last month's 22.22% and significantly higher than last year's 15.17%.
At the current rate, you'll pay $271.21 per month for every $10,000 you borrow, down from $277.04 last week.
Today's personal loan interest rates by credit score
Your credit score is one of the biggest factors lenders use to determine your interest rate. Generally, the higher your credit score, the better your rate.
Frequently asked questions (FAQ)
The exact credit score required for a personal loan varies by individual lender, but getting approved usually requires a good to excellent credit score. A good credit score is usually considered to be 670 or higher.
There are some lenders that accept the poor and needy. fair credit score.just remember bad credit loan They usually have higher interest rates than good credit loans.
Whether you should borrow from a bank or a credit union depends on your situation. Because credit unions are nonprofit organizations, they tend to have lower interest rates on personal loans compared to banks, and they may have more lenient credit score requirements. However, you will need to join a credit union to receive a loan. Each credit union has its own membership requirements.
BankFinancial institutions, on the other hand, are for-profit institutions and generally charge higher interest rates and fees on personal loans compared to credit unions. However, if you already have an account with the bank, you may be able to take advantage of discounts on loyalty rates and save on interest fees.Plus, almost anyone can do it. open a bank account By providing identification and an initial deposit.
When you apply for a personal loan, your lender will: strict credit check While determining if you are eligible. This can cause your credit score to drop slightly (usually by 5 points or less). A hard credit check can stay on your credit report for up to two years, but it will only affect your credit score for at most one year.
Additionally, taking out a personal loan can improve your credit score in the long run. For example, if you make on-time payments or are able to diversify your credit mix, you may see an improvement in your score. Ultimately, a personal loan can have a significant positive impact on your credit compared to the initial negative impact.
Blueprint is an independent publisher and comparison service and is not an investment advisor. The information provided is for educational purposes only and you are encouraged to seek individual advice from a qualified professional regarding your specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. Any opinions, analyses, reviews, or recommendations expressed in this article are solely those of Blueprint editorial staff. Blueprint adheres to strict editorial integrity standards. Information is accurate as of the date of publication, but please always check the provider's website for the most up-to-date information.
