Personal finance

This week’s average personal loan rates: January 24, 2023

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The average personal loan rate for borrowers with excellent credit scores (720+) is up more than three percentage points from last week, while those for borrowers with poor scores (<620) jumped 66 percentage points.

The average low rate on all personal loans is 10.09%, the same as last week. Rates have gone up across the board as the Federal Reserve has increased the federal funds rates to slow inflation, which leads to higher consumer borrowing costs across the board.

Personal loans fund many expenses, including medical bills and home improvement projects. Most borrowers use funds to consolidate debt. Reach out to your lender to ensure they allow your desired loan purpose.

Average personal loan rates

We’ve put together a database of 28 personal loan products and averaged their rates to help you get a handle on the current landscape. You’re more likely to get for a lower rate with a better credit score. Rates are unchanged from last week.

The lowest rate of the companies we track is from American Express, which has a minimum APR of 5.91%. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 155%.

The rates shown above aren’t offer to everyone. The rate you’ll get depends on your creditworthiness and other parts of your financial situation. You can see the rates you’ll get by applying with each lender you’re interested in.

Average personal loan rates by credit score

These rates are based on data from 182 borrowers who applied for loans and received rates.

Average loan amount and term length by credit score

These loan amounts and term lengths are based on data from 182 borrowers who applied for loans and received rates.

Percentage of borrowers by loan purpose

These loan purposes are based on data from 196 borrowers who applied for loans and received rates. One borrower used loan funds to pay for their wedding this week.

Frequently asked questions

Home improvement loans are unsecured personal loans that have fixed rates and are usually repaid in monthly installments over several years. These loans can fund everything from quick fixes to more substantial renovations.

There plenty of options for loan amounts, depending on what type of project you’re working on. You’ll get your money up front with a personal loan and will have to start repaying the balance plus interest as soon as you receive the money.

Your credit score will play a major part in determining if you’ll qualify for a loan with a given lender. A higher credit score will make you more likely to be approved, and get you a better rate. Each lender has its own standards to determine what you’ll need to be eligible for a loan.

Your credit score is a significant factor in determining which personal loans you’re qualified to receive. We’ve compiled a list of lenders with a variety of credit score requirements so you have options no matter your financial situation.

While some lenders offer attractive minimum interest rates, understand that to be eligible for those rates, you will have to have an excellent credit score. If your credit score isn’t in the best shape, you might get a high interest rate or not be approved by some lenders.

Depending on the lender, you may be able to get your money as soon as the same day you apply. Often a lender will send the money relatively quickly after the application is approved, but there is usually no guarantee on the speed of the approval process.

Ryan Wangman is a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF). In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >>

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.

Please note: While the offers mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed, or may no longer be available.

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Source: https://www.businessinsider.com/personal-finance/personal-loan-rates-today-tuesday-january-24-2023-1?op=1

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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