Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were lower compared to the previous seven days’ fixed-rate loans.
For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender between Nov. 29 and Dec. 6:
- Rates on 3-year fixed-rate loans averaged 11.34%, down from 11.61% the seven days before and up from 11.28% a year ago.
- Rates on 5-year fixed-rate loans averaged 14.05%, down from 15.04% the previous seven days, and 14.75% a year ago.
Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical bills, take care of a major purchase or fund home improvement projects.
Personal loan interest rates dropped for both 3-year and 5-year fixed terms. Rates for a 5-year term plunged by nearly a full percentage point, and are significantly lower than they were this time last year. Meanwhile, 3-year rates fell by 0.27%. Borrowers can take advantage of major interest savings with either a 3-year or 5-year fixed-rate personal loan right now.
Whether a personal loan is right for you often depends on multiple factors, including what rate you can qualify for. Comparing multiple lenders and their rates could help ensure you get the best possible personal loan for your needs.
It’s always a good idea to comparison shop on sites like Credible to understand how much you qualify for and choose the best option for you.
Here are the latest trends in personal loan interest rates from the Credible marketplace, updated monthly.