Personal Loan Rates Today: October 2026

The headline number: 11.90%

The Federal Reserve’s G.19 Consumer Credit release, published October 7, 2026, reports that the average rate on a 24-month personal loan at commercial banks was 11.90% in August 2026. The previous reading, for May, was 11.86%. The Fed collects this figure once a quarter, from each bank’s most common rate in the first week of the middle month of the quarter.

For context, the same series averaged 11.50% across 2025 and 12.27% across 2024, its recent peak. Rates have stayed in a narrow band near 12% for three years.

One caution: the August survey was taken before the Fed’s September 16 rate increase. The next G.19 release, due November 6, may begin to show its effect. Read what the hike means for borrowers.

Your credit score matters more than the average

Bank averages describe borrowers who qualify at banks, who tend to have strong credit. Marketplace data gives a wider view. In the fourth quarter of 2025, LendingTree reported these average best-offer APRs by credit score:

These are conditional offers shown before verification, so a final rate can differ. Still, the spread is the point: moving from fair to good credit can cut the cost of the same $1,000 loan by about a fifth. Our rates by credit score guide has larger loan sizes and longer terms.

Where you borrow changes the price

Credit unions have long charged less than banks for unsecured loans. NCUA’s survey for the end of 2025 found a 36-month unsecured fixed-rate loan averaged 10.64% at credit unions versus 12.00% at banks. On a $2,500 loan over 24 months, that gap is the difference between about $116.10 and $117.68 a month, or roughly $38 in total interest.

• Credit unions usually require membership, but many open it to anyone who lives or works nearby. Federal credit unions also offer payday alternative loans capped at 28% APR.
• Banks often favor existing customers and borrowers with strong credit.
• Online lenders serve a wider range of credit profiles and often let you prequalify with a soft check. Their APRs can run from near bank averages to above 30%.

See the full comparison in credit unions vs. banks.

How lenders set your rate

Every lender uses its own pricing model, but the same handful of factors show up almost everywhere:

• Credit score and history. Payment history makes up about 35% of a FICO Score and amounts owed about 30%, so late payments and high card balances weigh most.
• Debt-to-income ratio. Your monthly debt payments divided by your gross monthly income. A lower ratio signals room in your budget for a new payment.
• Income and employment. Lenders verify that you can repay, whether income comes from a job, self-employment or benefits.
• Loan amount and term. Very small and very long loans can carry higher rates.
• Your state. State law limits what some lenders can charge on smaller loans, and some lenders don’t operate in every state.

APR vs. interest rate

The interest rate is the cost of borrowing the principal. The APR adds most fees, including any origination fee, and expresses the total as a yearly rate. That makes APR the fair way to compare offers, and lenders must disclose it under the Truth in Lending Act.

Here is how much a fee can matter on a small loan. A $1,000 loan at a 19.99% interest rate over 12 months has a payment of $92.63 and $111.56 in total interest. If the lender also deducts a 5% origination fee, you receive only $950 but still repay the same $1,111.56. The APR including the fee is about 30.04%. See more examples in how origination fees change your APR.

What to expect next

The Fed raised its target range to 3.75%–4.00% on September 16, and banks moved the prime rate to 7.00% the following day. Fixed-rate personal loans you already have won’t change. New offers tend to move more slowly than credit card rates, because lenders price them off their own funding costs, competition and expected losses. The Fed’s next decision is due October 28, and the next G.19 data on November 6 will be the first reading taken after the hike. We update this page after each release.

What small loans cost

Most rate surveys track loans of several thousand dollars. Small loans of $200–$5,000 often carry higher APRs because a lender’s fixed costs are spread over fewer dollars. At the top of the range offered through Riverstone, 35.99%, a $1,000 loan over 12 months costs $100.46 a month. That is still a small fraction of a payday loan, which the CFPB notes can carry an APR of almost 400%.

Five ways to get a lower rate

1. Check your reports for errors at AnnualCreditReport.com, where free weekly reports are permanent, and dispute anything wrong.
2. Lower your card utilization before applying. Amounts owed make up about 30% of a FICO Score.
3. Prequalify with several lenders. Soft checks don’t affect your score.
4. Compare APR, not payment. APR includes fees and must be disclosed under the Truth in Lending Act.
5. Choose the shortest term you can afford. Shorter terms cost less in total interest.

Ready to compare? Request offers for $200–$5,000 or try the loan calculators first.

Frequently asked questions