Best Personal Loan Rates of 2026

Personal loans are one of the most flexible ways to borrow money. You can use the funds for debt consolidation, home repairs, medical bills, or almost anything else. In 2026, the best personal loan rates start as low as 6 percent APR for borrowers with top credit scores — far less than credit card rates that sit above 20 percent. But rates vary a lot from lender to lender, and your credit score, income, and loan amount all play a role in what you qualify for. This guide covers the best personal loan rates of 2026, where to find them, and how to get the lowest rate on your loan.

Best Personal Loan Rates in 2026

Personal loan rates in 2026 range from about 6 percent to 36 percent APR. The annual percentage rate you get depends on your credit score, credit history, the loan amount, the loan terms you pick, and the lender you choose. Here is a look at average rates by credit tier.

Excellent Credit Score (740+)

Borrowers with excellent credit get the best personal loan rates — typically 6 to 10 percent APR. These borrowers also qualify for the highest loan amounts, the longest terms, and the lowest fees. If your score is above 740, you are in a strong position to negotiate and compare offers from many lenders.

Good Credit Score (670–739)

Good credit borrowers can expect rates of 10 to 16 percent APR on personal loans. This is the range where shopping around makes the biggest difference. A rate of 10 percent versus 16 percent on a $15,000 loan over five years can save you thousands in total interest payments.

Fair Credit Score (580–669)

Fair credit borrowers face rates of 16 to 26 percent APR. At this level, it is worth checking whether the loan rate is lower than what you are paying on credit cards. Some lenders subject applicants in this range to higher fees or lower loan amounts.

Bad Credit Score (Below 580)

Rates for bad credit borrowers can go from 26 to 36 percent APR. A few lenders offer products for this tier, but the rates are high and fees can be steep. If you are in this range, improving your score by even 30 to 50 points before you apply could save you a lot of money. See our guide to loans for bad credit for tips.

Where to Find the Best Personal Loan Rates

Credit Union Personal Loans

Credit unions tend to offer the lowest personal loan rates because they are nonprofits that pass savings to members. Many credit union personal loans start at 6 to 9 percent APR for borrowers with good credit. Membership may be required, but many credit unions are open to anyone in a certain area or who meets simple criteria.

Online Lenders

Online lenders like SoFi, LightStream, and Discover offer competitive rates, fast application, and same-day or next-day funding. SoFi charges no origination fees and offers an autopay rate discount. LightStream offers some of the lowest rates for borrowers with strong credit history — as low as 6.49 percent APR. Discover personal loans are available in loan amounts from $2,500 to $40,000.

Banks

Big banks like Wells Fargo and Citizens offer personal loans, often with rate discounts for existing account holders. If you already bank with a large institution, check their personal loan products first — you may get a lower rate or faster funding because they already have your financial information on file.

Lending Marketplaces

Sites like LendingTree and Credible let you compare offers from many lenders with one application. This is one of the fastest ways to see your options and compare annual percentage rates, fees, and terms side by side.

How Personal Loan Interest Rates Work

Fixed vs. Variable Annual Percentage Rate (APR)

Most personal loans have a fixed rate, meaning your APR and monthly payment stay the same for the life of the loan. A few lenders offer variable rates that can go up or down. Fixed rates are better for budgeting because your payments never change. Variable rates may start lower but can rise over time.

What Is Included in Your APR

The annual percentage rate includes both the interest rate and any fees the lender charges, like origination fees. This makes APR the best number to use when you compare offers. A loan with a low interest rate but a 5 percent origination fee may cost more than a slightly higher rate with no fees.

How Loan Terms Affect Your Rate

Shorter loan terms — two to three years — usually carry lower rates. Longer terms of five to seven years have higher rates but lower monthly payments. Pick the term that fits your budget while keeping total interest low. Use a loan calculator to see how different terms affect your total cost.

Common Uses for Personal Loans

Debt Consolidation

This is the most popular use for personal loans. You take out one loan to pay off credit cards, medical bills, or other high-interest debt. The result is one monthly payment at a lower rate. For a full guide, see our article on using a personal loan for debt consolidation.

Home Improvement

Personal loans are a good option for home projects when you do not want to use a home equity loan or put your house at risk. Loan amounts up to $50,000 or more are available from many lenders, with funds deposited in as little as one business day.

Medical Bills

If you face a large medical bill, a personal loan can help you pay it off over time at a fixed rate. This is often better than putting the cost on a credit card with a higher interest rate.

Major Purchases

Personal loan funds can be used for weddings, moving costs, or other large expenses. The key is to make sure the monthly payment fits your budget and that borrowing makes financial sense for your situation.

Fees to Watch For

Origination Fees

Some lenders charge an origination fee of 1 to 8 percent, which is taken from your funds before you receive them. Many top lenders — like SoFi and LightStream — charge no origination fee. Always check this before you apply.

Late Payment Fees

Missing a payment can trigger a late fee and hurt your credit score. Set up autopay to avoid this — many lenders offer a rate discount of 0.25 percent when you do.

Prepayment Penalties

Most personal loan lenders do not charge a fee for paying off your loan early. Check the terms before you sign. Paying off early saves you interest and frees up money in your budget.

How to Get the Best Personal Loan Rate

Check Your Credit Score First

Know where you stand before you apply. You can check your score for free through most bank apps. Fix any errors on your credit report — this alone can raise your score and help you get a lower rate.

Compare Multiple Lenders

Apply to at least three to five lenders. Most offer pre-qualification with a soft credit check that does not affect your score. Compare the APR, loan amount, fees, and terms from each offer before you pick one.

Consider a Co-Signer

If your credit is not strong enough to qualify for a low rate on your own, adding a co-signer with good credit can help you get approved at a better annual percentage rate. Keep in mind that your co-signer is subject to the same repayment terms — if you miss payments, it affects their credit too.

Use Autopay for a Rate Discount

Many lenders offer a 0.25 percent rate discount when you set up automatic monthly payments from your bank account. This is free money — set it up on day one.

Borrow Only What You Need

It can be tempting to borrow more than you need when a lender offers a high loan amount. But a bigger loan means higher monthly payments and more total interest over the life of the loan. Figure out the exact amount you need, add a small buffer, and stick to that number. This keeps your payments low and saves you money in the long run.

Read the Fine Print

Before you sign, review the full loan agreement. Look for hidden fees, rate changes, and any restrictions on how you can use the funds. A few minutes of reading can save you from surprises down the road. If anything is unclear, ask the lender before you commit.

The Bottom Line on Best Personal Loan Rates

Personal loan rates in 2026 range from about 6 percent for top borrowers to 36 percent for those with poor credit. The best way to get a low rate is to check your credit score, compare offers from multiple lenders, and choose the loan terms that fit your budget. Whether you need funds for debt consolidation, home improvement, or a major purchase, the right personal loan can save you money and help you reach your financial goals.

For more on how to manage debt and save on interest, see our guide to the best debt consolidation loans of 2026.