What Is a Good Interest Rate on a Personal Loan in 2026?

Bottom line: Below 12% is a good rate for a personal loan regardless of credit score. Under 10% is excellent. Above 20% is high enough that you should compare alternatives. At 30%+, a personal loan is expensive debt and alternative borrowing options should be exhausted first.

"Good" is relative in personal loan pricing because the rate you qualify for depends almost entirely on your credit score and income. A 15% rate is excellent for someone with fair credit and poor for someone with excellent credit. The meaningful benchmark is how your rate compares to what you should qualify for at your credit tier.

Current Personal Loan Rate Benchmarks by Credit Score (2026)

For context, the average personal loan APR across all credit tiers is currently 11.48%. These tier ranges are averages from online lenders. Credit unions often offer rates 2–4% below these benchmarks for their members. Rates also vary by loan amount and term: shorter terms and smaller amounts sometimes get better pricing.

Why Rate Varies This Much

Personal loans are unsecured, meaning no collateral backs them. The lender's only protection is your creditworthiness. Higher credit scores indicate lower default risk, which lenders price into the rate. The 30-point spread between 600 and 850 represents an enormous difference in statistical default probability, hence the large rate difference.

The federal funds rate also influences personal loan rates: they tend to move directionally with Fed policy, though with a lag and not in a fixed ratio. You can track the current 3.75% upper bound alongside personal loan pricing.

What to Compare Beyond Rate

APR vs. interest rate: APR (Annual Percentage Rate) includes the interest rate plus origination fees, expressed as a single annual cost. Always compare APR, not just the stated interest rate. A 10% interest rate with a 5% origination fee on a 3-year loan has an APR significantly above 10%.

Total interest paid: On a $15,000 loan over 48 months, the difference between 10% and 18% APR is approximately $2,900 in total interest. Calculate the actual dollars, not just the percentage.

Origination fees: Charged by many lenders at 1–8% of the loan amount, deducted from your proceeds or added to your balance. A $10,000 loan with a 6% origination fee either funds $9,400 or creates a $10,600 balance. LightStream charges no origination fees; Upgrade charges 1.85–9.99%.

When to Accept a Higher Rate vs. Wait

Sometimes you need the money and the rate is what it is. In those cases, the comparison is not "is this rate good?" but "is borrowing at this rate better than the alternative?"

A personal loan at 22% to pay off credit cards at 27% saves money. A personal loan at 28% to fund a vacation loses money over time. The rate is only one input into the decision about whether to borrow at all.

If your rate is high because of credit score:

• Consider waiting 6–12 months and improving credit before borrowing non-urgently
• Target credit score above 680: the improvement in rate tier at that threshold is often 5–8 percentage points
• A secured personal loan (backed by savings) may offer a lower rate than unsecured alternatives in the subprime range

Before applying, it's worth understanding what lenders check so you know where you stand, and comparing personal loan pricing against current credit card APRs if you're deciding between the two. The Consumer Financial Protection Bureau also publishes guidance on comparing loan offers.

Personal loan rates change with Federal Reserve policy and lender competition. Compare current offers at the time of application.