Average personal loan rates for 5-year loans fell slightly to 17.99% from 18.00% the previous week, according to Bankrate’s most recent data for the week ending July 4. Meanwhile, average 3-year personal loan rates also fell to 19.02% from 19.43% the previous week. If you have excellent credit, you’ll likely pay a lot less: 5-year personal loan rates for those with very high credit scores sit at 12.70%, and for 3-year personal loans, rates means are even lower at 11.39%. You can see the lowest personal loan rates you qualify for here.
Data from LendingTree reveals that nearly 20 million Americans have a personal loan. And one of the reasons they’re so popular is that they tend to fund quickly (sometimes in as little as a day) and don’t usually require a borrower to post collateral. The pros say borrowers looking to finance a major purchase or consolidate high-interest debt can consider taking out a personal loan.
That said, personal loans tend to have higher rates than other types of loans, like HELOCs and home equity loans, for example. This is one of the reasons why experts say it’s important that borrowers don’t get carried away by taking more money than they actually need, because you’ll have to pay it all back plus interest. . If you don’t repay the money, it will hurt your credit score, which can impact the rates you pay on loans for years to come.
If you decide a personal loan is right for you, make sure your credit score is as high as possible and your finances are in order. Then, get quotes from a few different lenders to ensure you get the best rates and terms possible.
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