While the average personal loan interest rate is 12.42%, borrowers with excellent credit may have access to rates as low as 6.20%. Credit unions tend to offer the lowest overall borrowing costs, with a national average of 10.72% and a legal rate cap of 18% at federal institutions. Online fintech lenders advertise competitive rates starting at 6.20%, though maximum rates can climb up to 36% or higher.
Commercial banks remain competitive, with an average rate of 12.06%, but they demand a high credit score and solid work history for approval. Tracking average personal loan rates can help you benchmark your borrowing costs for major goals like consolidating credit cards, financing home renovations or covering emergencies. Because personal loans offer fixed monthly payments, they are a solid tool for eliminating credit card debt, provided your credit profile qualifies you for the lowest market pricing.
If your priority is minimizing borrowing costs, it's also important to track how the lowest available rates are trending. Borrowers with excellent credit can often access financing that undercuts standard home equity or HELOC pricing, provided they know where to look. Comparing national rates against these rock-bottom options gives you the information you need to make the best decision for your finances.
According to personal loan Bankrate Monitor data, as of July 15, 2026, the average personal loan rate is 12.42% for customers with a 700 FICO score, $5,000 loan amount and three-year repayment term. Your rate will vary depending on your credit score, loan term, loan amount and the type of lender you choose. The Bankrate Monitor survey collects rates from the 10 largest banks and thrifts in the 10 largest U.S. markets, assuming you don't already have a relationship with an institution and aren't set up for automatic payments.
If you have excellent credit, you may qualify for a rate significantly lower than the overall Bankrate Monitor** average. *Based on data featured on Bankrate rate offer pages. ** On Feb. 25, 2026, Bankrate stopped tracking several high-interest lenders, resulting in a lower median. Securing a competitive personal loan can shave thousands of dollars off your total borrowing costs, but you won't find those savings by accepting your first offer. To keep more money in your pocket, shop around and compare rates with multiple lenders.
The following table gives an example of how interest compares for a $15,000 loan over a 4-year term. The difference between a 15% personal loan rate and a 6% rate is only about $60 a month, but you'll pay over $3,000 less over the life of the loan. The lowest available rate among Bankrate-featured lenders is 6.20%, while the highest is almost 36%.
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