Personal loans are one of the most flexible borrowing tools available, but the cost difference between lenders is staggering. Shop carelessly, and you could end up paying thousands more in interest and fees than you need to. So let’s break down what personal loans actually cost in 2026, what drives those costs, and how to make sure you’re getting the best deal for your situation.
What’s Everyone Else Paying?
Here’s where we’re at in early 2026: the Federal Reserve reports the average rate on a 24-month personal loan from commercial banks at 11.65% as of November 2025. Credit unions offer slightly better deals, averaging about 10.72% for a 36-month fixed-rate loan.
But averages only tell part of the story. The actual APR range across the market runs from roughly 6.5% for the most creditworthy borrowers at the best lenders all the way up to 35.99% for higher-risk profiles. That’s a massive spread, and where you land on it depends on your credit score, income, the lender you choose, and how much you’re borrowing.
The good news? Rates have been trending downward. The Fed cut the federal funds rate three times in 2025 before holding steady in January 2026, bringing the target rate to 3.5% to 3.75%. Average personal loan rates on three-year terms dropped from about 14.80% a year ago to around 13.03% this week, according to Credible marketplace data. That’s real savings if you’re borrowing now versus a year ago.
Personal Loan Rates by Lender
The table below shows the current APR range and origination fee for each of the 15 lenders we review, sorted from lowest to highest floor rate. These rates are verified directly from each lender’s website and disclosure documents.
| Provider | Low APR (%) | High APR (%) | Origination Fee | Check Rates |
|---|---|---|---|---|
| Achieve Personal Loans | 8.99 | 29.99 | 1.99% - 8.99% | Get Your Rates |
| American Express Personal Loans | 6.99 | 19.97 | None | Get Your Rates |
| Avant Personal Loans | 9.95 | 35.99 | Up to 9.99% | Get Your Rates |
| Best Egg Personal Loans | 6.99 | 35.99 | 0.99% - 9.99% | Get Your Rates |
| Citibank Personal Loans | 9.99 | 19.49 | None | Get Your Rates |
| Happy Money Personal Loans | 7.95 | 29.99 | 0% - 5% | Get Your Rates |
| LendingClub Personal Loans | 6.53 | 35.99 | 0% - 8% | Get Your Rates |
| LightStream Personal Loans | 6.94 | 25.29 | None | Get Your Rates |
| OneMain Financial | 18 | 35.99 | $25 - $500 or 1% - 10% | Get Your Rates |
| Prosper Personal Loans | 8.99 | 35.99 | 1% - 9.99% | Get Your Rates |
| Rocket Loans | 8.01 | 29.99 | Up to 9.99% | Get Your Rates |
| SoFi Personal Loans | 7.74 | 35.49 | None | Get Your Rates |
| U.S. Bank Personal Loans | 7.74 | 24.99 | None | Get Your Rates |
| Upgrade Personal Loans | 7.74 | 35.99 | 1.85% - 9.99% | Get Your Rates |
| Upstart Personal Loans | 6.6 | 35.99 | 0% - 12% | Get Your Rates |
Breaking Down the True Cost of a Personal Loan
The interest rate gets all the attention, but it’s not the only thing that determines what your loan actually costs. Here are the three components you need to look at together.
APR (Annual Percentage Rate) is the number that matters most because it wraps the interest rate and mandatory fees into a single figure. When a lender advertises a 7.99% interest rate but charges a 6% origination fee, the APR will be noticeably higher than 7.99%. Always compare APR to APR, not interest rate to interest rate.
Origination fees are one-time charges deducted from your loan proceeds before the money hits your account. They typically range from 1% to 8% of the loan amount, though some lenders charge nothing at all. On a $15,000 loan, a 6% origination fee means you only receive $14,100 but still owe (and pay interest on) the full $15,000. Five of the 15 lenders in our review (SoFi, LightStream, American Express, Citibank, and U.S. Bank) charge no origination fee whatsoever.
Late fees and prepayment penalties round out the picture. Most lenders charge late fees ranging from $15 to $39 or a percentage of the missed payment. Prepayment penalties are rarer in 2026 (none of the 15 lenders in our review charge one), but they still exist at some lenders outside our coverage, so always check the fine print.
What Actually Affects Your Rate
This is where things get personal. Lenders are running risk models to predict how likely you are to repay, and they’ve got a lot of data points to work with. Here’s what moves the needle the most.
Your credit score is the single biggest factor. Borrowers with excellent credit (720+) typically see rates in the 10% to 16% range, with the very best profiles qualifying for single-digit APRs. Fair credit (580 to 669) pushes rates into the mid-teens or higher, and borrowers below 580 will face rates near the 36% ceiling, if they can get approved at all. NerdWallet’s 2024 data shows borrowers with scores of 720+ received an average rate of 11.81%, while those below 630 averaged 21.65%.
Your debt-to-income ratio (DTI) tells lenders how much of your monthly income is already spoken for by existing debt payments. Most lenders want to see a DTI below 40%, and the lower yours is, the better rate you’ll get. A high DTI signals to lenders that you might struggle to take on additional payments.
Loan amount and term length both affect pricing. Shorter terms generally carry lower APRs because the lender’s money is at risk for less time. Smaller loan amounts can sometimes carry higher APRs because the fixed costs of originating the loan get spread across fewer dollars. The sweet spot for most borrowers tends to be a three-to-five-year term on a loan of $5,000 to $35,000.
The type of lender you choose matters more than most people realize. Online lenders originate nearly half of all personal loans (48.6%, per TransUnion) and tend to offer the widest APR ranges: the lowest floors for excellent credit and the highest ceilings for weaker profiles. Banks average around 12.06%, credit unions around 10.72%, and online lenders span roughly 6.5% to 36%.
Employment and income stability come into play as well. Lenders want to see steady income, and some (like Upstart) factor in your education and employment history to evaluate future earning potential. Self-employed borrowers or those with irregular income may face higher rates or additional documentation requirements.
How to Actually Get a Lower Rate
This is the part you probably scrolled down for. Here’s how to stop leaving money on the table.
Get prequalified with multiple lenders. This is the single most impactful thing you can do. Most of the lenders in our review offer soft-pull prequalification, which means you can check your estimated rate without any impact on your credit score. Get quotes from at least three to five lenders and compare APRs, not just advertised rates.
Enroll in autopay. Many lenders offer a 0.25% to 0.50% rate discount for setting up automatic payments. It’s free money. SoFi, LightStream, U.S. Bank, and Rocket Loans all offer autopay discounts.
Add a co-borrower. If you have a creditworthy partner, spouse, or family member willing to co-sign or co-borrow, their income and credit profile can help you qualify for a lower rate. Lenders like SoFi, LendingClub, and Upgrade allow co-borrowers.
Choose the shortest term you can afford. A three-year loan almost always carries a lower APR than a five-year loan on the same amount. Yes, the monthly payment will be higher, but you’ll pay significantly less in total interest. On a $15,000 loan, the difference between a 3-year and 5-year term at average rates can be over $2,000 in interest.
Skip lenders with high origination fees (or account for them). A lender advertising an 8% APR with a 6% origination fee may cost you more than one offering 9.5% with no fee. Do the math on total cost, not just the rate number.
Improve your credit before applying. Even a 20-to-40-point bump in your FICO score can drop you into a lower rate tier. Pay down credit card balances to get your utilization below 30%, dispute any errors on your credit report, and avoid opening new accounts in the months before you apply.
Consider your loan purpose. Some lenders, like LightStream, offer different rates depending on what you’re using the loan for. Home improvement loans, for example, sometimes carry lower rates than general-purpose loans because lenders view them as lower risk.
The Bottom Line
Personal loan rates in 2026 are coming down from the highs of the past couple of years, but they’re still elevated by historical standards. The average borrower with good credit is looking at rates in the low double digits, while the best-qualified borrowers can land single-digit APRs from lenders like LightStream, SoFi, and LendingClub.
The biggest mistake you can make is accepting the first offer you see. The spread between the cheapest and most expensive lender for the same borrower profile can be 10 percentage points or more, and that translates to thousands of dollars over the life of the loan. Take the time to prequalify with multiple lenders, compare APRs (not just interest rates), factor in origination fees, and choose the shortest term that fits your budget.
Your rate will depend on your specific financial profile, but you have more control over it than you might think. A higher credit score, lower DTI, autopay enrollment, and a co-borrower can all pull your rate down meaningfully. And with rates trending in the right direction for the first time in a while, this is a better time to borrow than it was a year ago.
