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What affects my rate?
Your credit score, income, debt-to-income ratio, and loan term all influence the interest rate lenders offer you.
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APR vs interest rate
APR includes fees on top of the interest rate, giving you the true annual cost of borrowing. Always compare APR, not just rate.
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Shorter terms save money
A shorter loan term means a higher monthly payment but significantly less total interest paid over the life of the loan.
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Prequalify first
Many lenders let you check your rate with a soft credit pull that doesn't affect your credit score before formally applying.
What actually determines your personal loan rate
Unlike mortgages, personal loans are unsecured — there's no collateral backing them. That means lenders price risk almost entirely based on your creditworthiness. Here's how credit score typically maps to rate. For more detail on what qualifies as a good rate, see our good interest rate guide.
Typical personal loan APR by credit score
| Credit score | Tier | Typical APR range |
|---|
| 720+ | Excellent | 6% – 12% |
| 690–719 | Good | 10% – 16% |
| 630–689 | Fair | 15% – 25% |
| 580–629 | Poor | 24% – 36% |
| Below 580 | Bad credit | Limited options, 30%+ |
This is a much wider range than mortgages or auto loans because there's no asset for the lender to repossess if you stop paying. The gap between excellent and poor credit can mean paying 3-5 times more in total interest for the exact same loan amount.
Personal loan vs credit card — the real comparison
For a $10,000 balance, the difference between these two options is dramatic. See the full breakdown in our Personal Loan vs Credit Card guide, or use the quick comparison below:
$10,000 balance — personal loan vs credit card
| Option | Typical APR | 3-yr total interest |
|---|
| Personal loan (good credit) | 11% | $1,776 |
| Personal loan (fair credit) | 20% | $3,397 |
| Credit card (avg. ~24% APR) | 24% | $4,176+ |
Personal loans typically win for large, one-time expenses because the rate is fixed and the payoff date is guaranteed. Credit cards make more sense for smaller, ongoing, or unpredictable expenses where flexibility matters more than rate. If you're carrying balances across multiple debts, the Debt Payoff Calculator can show you the fastest and cheapest path to clearing them all. Ready to apply? See our step-by-step guide to getting a personal loan.
Common questions
How do I calculate my personal loan payment?
Enter your loan amount, interest rate, and loan term into the calculator above. It uses the standard amortization formula to instantly show your monthly payment, total interest, and total repayment amount.
What credit score do I need for a personal loan?
Most lenders require a minimum credit score of 580 to 600, though the best rates typically require 690 or higher. Some lenders specialize in fair or bad credit loans with scores as low as 560. See our guide to getting a personal loan for tips on improving your approval odds.
What is a good interest rate for a personal loan?
Personal loan rates typically range from 6% to 36% APR. A good rate is generally below 12%, which usually requires a credit score of 690 or higher.
Is it better to get a personal loan or use a credit card?
Personal loans generally have lower rates than credit cards and a fixed payoff date, making them better for large, one-time expenses. Credit cards offer more flexibility but typically carry higher rates. Read the full Personal Loan vs Credit Card comparison for a detailed breakdown.
How long can I take to pay off a personal loan?
Most personal loans have terms between 2 and 7 years. Shorter terms mean higher payments but lower total interest; longer terms lower your payment but increase total interest paid.