Personal loans: rates, costs, and how to qualify
The average APR on a 24-month personal loan is 11.57% as of July 2026 — down 0.12 points from last quarter. What sets your rate — and when a personal loan beats a credit card or a HELOC.
A personal loan is an unsecured A loan that doesn't require collateral — approval rests on your credit profile and income. Full definition → installment loan: you borrow a fixed amount, then repay it in equal monthly payments over two to seven years. Because no collateral backs the loan, your rate depends almost entirely on your credit score, income, and existing DTI Debt-to-income ratio — your monthly debt payments divided by gross monthly income. Most lenders want it under 36%. Full definition → .
Rates span a wide band. Borrowers with 720+ scores currently see offers near 10.2% APR, while subprime borrowers face 24% and up — a difference of roughly $2,600 in interest on a $10,000, three-year loan.
| Credit tier | Score range | Avg APR | Monthly change |
|---|---|---|---|
| Excellent | 720–850 | 10.19% | ▾ 0.14 pts |
| Good | 690–719 | 13.48% | ▾ 0.09 pts |
| Fair | 630–689 | 17.83% | ▴ +0.05 pts |
| Poor | 300–629 | 24.60% | ▴ +0.21 pts |
Source: Loans Advisor analysis of advertised lender APRs, July 2026 (see methodology). Averages for 3-year terms; your offer will differ by income and state.
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Where personal loans win
- Fixed rate and payoff date — no revolving-debt drift
- APR runs about 10 points below average credit card rates
- No collateral: your home and car stay out of it
- Funding in 1–3 business days at most online lenders
Where they don't
- Origination fees up to 8% at some lenders
- Rates above 20% if your score is under 630
- No interest deduction, unlike some home-equity uses
- A new hard inquiry plus a new account on your file
A lender we profile
Wells Fargo
Personal loans · NMLS #399801 · Founded 1852
- APR range7.49–24.49%
- Loan amounts$3,000–$100,000
- Terms12–84 months
- Origination feeNone
- Min credit score660 (est.)
- StatesAll 50
Independent profile. Loans Advisor is not affiliated with, or compensated by, this lender.
Questions borrowers actually ask
What credit score do I need for a personal loan?
Most lenders set the floor at 580–640, but pricing changes fast with your score: moving from “fair” to “good” currently cuts the average offer by more than four percentage points. Below 580, look at credit-union payday alternatives (PALs) before accepting a triple-digit APR product.
Does checking my rate hurt my credit?
Pre-qualification uses a soft pull and doesn't touch your score. A hard inquiry only happens when you submit a full application — and unlike mortgage or auto shopping, FICO does not deduplicate multiple personal-loan applications, so apply to one, not five.
Personal loan or HELOC for debt consolidation?
HELOC rates run lower (7.90% vs 11.57% today), but they put your house on the line and most carry variable rates. Run both in our debt consolidation calculator — with fees included, the personal loan wins more often than the headline rates suggest.
Can I pay a personal loan off early?
Almost always, and almost always without a penalty — prepayment fees are rare on consumer personal loans. Paying a 60-month loan off in 36 cuts total interest by roughly a third; run your own numbers in the loan calculator.