Are you looking for the best personal loan interest rates? With so many different loan products available, it can be difficult to know which one to choose. Fortunately, we’ve put together this handy guide to help you compare interest rates and find the best deal for you. We’ll cover factors to consider when choosing a personal loan, compare interest rates across lenders, and list ways to get the lowest interest rate possible.
What is a Personal Loan?
A personal loan is a loan that can be used to cover various expenses, such as home improvements or medical bills. Many financial institutions offer personal loans with fixed or variable interest rates, depending on the individual’s creditworthiness. The amount of money one can borrow and the interest rate they qualify for will depend on several factors, including their credit history, income, and the total loan amount.
Factors to Consider when Choosing a Personal Loan
When considering a personal loan, some of the key factors to consider include the total Loan Amount, the Interest Rate, and Loan Terms. The loan amount is the total amount of money you can borrow from the lender. The interest rate is the amount of interest you will pay on the loan, and is usually expressed as an annual percentage rate (APR). Loan terms are the length of the loan, usually expressed in months or years.
It’s important to note the interest rate you qualify for can vary based on your creditworthiness and other factors. Always read the terms and conditions carefully before signing a loan agreement.
Compare Interest Rates Among Lenders
Personal loan interest rates currently range from 5.91% to about 35.99%. Different lenders may offer different interest rates, so it’s important to compare rates before committing to a loan. You can view the interest rates offered by various lenders on comparison websites such as Credible, to help you decide which loan will be best for you.
The best interest rates are typically reserved for those with excellent credit, but many lenders offer competitive rates even if you have a lower credit score.
Best Personal Loan Interest Rates by Lender
LightStream is currently offering the lowest APRs of any lender on our list, ranging from 2.49% to 19.99or those who enroll in auto-pay. Interest rates vary by loan purpose, and you can view them on the LightStream website.
Happy Money is best for debt consolidation, offering competitive interest rates and no origination or prepayment fees.
Upgrade offers competitive interest rates for loan amounts up to $50,000, with no fees and no prepayment penalty.
SoFi is another top-ranked lender for personal loans, offering competitive rates for loans of up to $100,000, with no fees.
Upstart is ideal for those without established credit, as they offer competitive rates even if you have a lower credit score.
Ways to Get the Lowest Interest Rate Possible
The best way to get the lowest interest rate possible on a personal loan is to have excellent credit. Experts typically recommend a credit score of 760 or higher for the best rates. However, other factors can affect your interest rate, including loan features such as term length, loan purpose, and income. Additionally, some lenders may offer discounts for enrolling in autopay.
Finding the best personal loan interest rate can be a challenge, but with the right information, it can be done. By comparing interest rates among lenders, you can ensure that you get the lowest rate possible. Additionally, you can maximize your chances of getting the lowest interest rate possible by having excellent credit and researching loan features, discounts, and other factors that may affect your rate.