Personal Loan Interest Rates for February 2019

Personal loan interest rates, whether you’re considering a loan from a bank, credit union or online lender, generally range from about 6% to 36%. The actual rate you receive depends on factors such as your credit score and history, annual income, existing debt and where you get the loan.

Comparing rates — along with monthly payments and total interest — can help you choose the most affordable loan. Here’s a look at average interest rates on personal loans from online lenders, banks and credit unions.

Online personal loan interest rates

Online lenders offer the lowest starting interest rates on personal loans to borrowers with good to excellent credit. Use the calculator below to see estimated rates and payments from online lenders based on your credit score.

The annual percentage rate on a loan is its interest rate plus all fees, including origination fees. When you’re shopping for a loan, always check APRs for the best cost comparison.

In addition to low starting rates, online lenders typically do a soft credit check for pre-qualification, which allows you to compare rates without having an impact on your credit score. Banks and credit unions typically do a hard credit check, which can temporarily shave points off your credit score.

» MORE: 4 steps to pre-qualify for a personal loan

Who has the best online personal loan interest rates?

Loans from online lenders LightStream, SoFi and Marcus carry some of the lowest starting APRs. LightStream’s APR range varies by the reason for a loan, with its lowest starting rate applying to a new or used car purchase.

LightStream and Marcus both require a minimum credit score of 660. LightStream accepts joint applications, and one applicant can have a credit score lower than its minimum. SoFi has a slightly higher credit score requirement and requires at least $45,000 in annual income.

• APR: 3.99% – 16.99% (with autopay).

• Loan amount: $5,000 – $100,000.

• Loan terms: 2 to 7 years.

• Minimum credit score: 660.

• Time to funding: As soon as the same day.

• Fees: None.

• Read our review.

• APR: 5.74% – 16.49% (with autopay).

• Loan amount: $5,000 – $100,000.

• Loan terms: 2 to 7 years.

• Minimum credit score: 680.

• Time to funding: Typically 7 days.

• Fees: No origination fees, late fees or overdraft fees.

• Read our review.

• APR: 5.99% – 28.99%.

• Loan amount: $3,500 – $40,000.

• Loan terms: 3 to 6 years.

• Minimum credit score: 660.

• Time to funding: Usually 2 days.

• Fees: None.

• Read our review.

» MORE: Personal loans for good to excellent credit

Personal loan interest rates at banks

Large banks that offer personal loans include Citibank and Wells Fargo. Banks may offer competitive rates — and rate discounts if you’re already a customer — but they typically have tougher eligibility requirements and can take longer to fund your loan than online lenders.

Commercial banks charged an average APR of 10.70% on 24-month personal loans in November 2018, according to the most recent data from the Federal Reserve.

» MORE: Compare banks offering personal loans

Personal loan interest rates at credit unions

Credit union loans may carry lower rates than banks and online lenders, especially for those with bad credit, and loan officers may be more willing to consider your overall financial picture.

The average rate charged by credit unions in December 2018 for a fixed-rate, 3-year loan was 9.37% APR, according to the most recent data from the National Credit Union Administration. Federal credit unions cap the APR on personal loans at 18%.

You have to become a member of a credit union to apply for a loan, and the loan application may result in a hard credit check.

» MORE: Pros of credit union personal loans

How to pre-qualify for a personal loan

Pre-qualifying for an online loan can get you access to potential loan terms, including the loan’s interest rate. You can pre-qualify with multiple lenders on NerdWallet to compare offers and find the lowest rate.

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