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Rate tracker · Data through August 2026
Personal Loan Rates Today: October 2026
The average 24-month personal loan at U.S. banks costs 11.90% APR, credit unions average 10.64%, and the rate you are offered can run from about 12% to 30% depending on your credit. Here is what borrowers are paying now, why, and how to get a better rate on a $200 to $5,000 loan.
Personal loan rate snapshot
Personal loan rates are set by each lender, so there is no single "today's rate." The best public benchmarks come from regulators that survey lenders on a fixed schedule. The table below collects the most recent reading from each one and the date it covers.
| Benchmark | Rate | Period | Source |
|---|---|---|---|
| 24-month personal loan, commercial banks | 11.90% | Aug 2026 | Federal Reserve G.19 |
| 36-month unsecured fixed-rate loan, credit unions | 10.64% | Dec 26, 2025 | NCUA |
| 36-month unsecured fixed-rate loan, banks | 12.00% | Dec 26, 2025 | NCUA |
| Credit card, accounts charged interest | 22.36% | Aug 2026 | Federal Reserve G.19 |
| Credit card, all accounts | 21.19% | Aug 2026 | Federal Reserve G.19 |
| New car loan, 60-month, banks | 7.54% | Aug 2026 | Federal Reserve G.19 |
| Prime rate | 7.00% | Since Sep 17, 2026 | Major U.S. banks |
The Fed's personal loan figure is the average of each reporting bank's most common rate in the first week of the middle month of each quarter, so it updates four times a year.
Two things stand out. First, bank personal loan rates have barely moved in a year: 11.90% in August 2026 against an 11.50% average for 2025. Second, credit cards remain far more expensive. Someone carrying a card balance pays roughly 10 points more than the average bank personal loan, which is why fixed-rate loans are a common way to pay down revolving debt.
Averages are not offers. Bank survey rates reflect borrowers who qualify at banks, who tend to have strong credit. Online lenders and smaller loans are often priced higher. Your own rate depends on your credit, income, debt and state.
Personal loan rates by credit score
Your credit score moves your rate more than anything else. Offer data from one large online loan marketplace shows the average best APR more than doubles between excellent and poor credit.
Bars drawn to a 0–35% scale. Conditional offers to LendingTree users for $5,000–$54,999 loans with 36–83 month terms, Q4 2025, before identity and income verification.
What that gap costs on a $3,000 loan
Using the average best offer for each tier, here is the monthly payment and total interest on a $3,000 loan repaid over 24 months, with no origination fee:
| Credit tier | APR | Monthly payment | Total interest |
|---|---|---|---|
| 800+ (excellent) | 12.15% | $141.43 | $394 |
| 740–799 (very good) | 15.54% | $146.23 | $510 |
| 670–739 (good) | 20.61% | $153.58 | $686 |
| 580–669 (fair) | 25.78% | $161.29 | $871 |
| Under 580 (poor) | 29.05% | $166.27 | $991 |
Moving from fair to good credit on this loan saves about $185 in interest. On larger or longer loans the difference grows, which is why it can pay to improve your score before you borrow if the expense can wait. The national average FICO Score was 714 in FICO's latest report, which falls in the "good" band above.
Personal loan rates by lender type
Where you borrow matters almost as much as your credit. Credit unions are nonprofit cooperatives and usually price lower. Online lenders approve a wider range of borrowers and price for that risk. Payday lenders charge fees that translate into triple-digit APRs.
| Lender type | Typical APR | Loan sizes | Good to know | Cost |
|---|---|---|---|---|
| Credit unions | 10.64% average (36-mo) | Varies | Membership required; often the lowest rates | Low |
| Banks | 11.90–12.00% average | Often $2,000+ | Best rates usually go to existing customers with strong credit | Low |
| Online lenders | About 12% to 30%+ | Wide range | Fast decisions; many prequalify with a soft check; check fees | Varies |
| Credit union PALs | Capped at 28% | $200 to $2,000 | Federal credit unions only; application fee capped at $20 | Low |
| Credit cards | 22.36% average | Your credit line | Variable rate that moves with prime | Medium |
| Payday loans | Almost 400% | Usually $500 or less | A $15 fee per $100 for two weeks; rollovers add up fast | Very high |
The personal loan market right now
Personal loans are growing faster than credit cards. TransUnion's second-quarter 2026 report shows record balances and more borrowers, alongside a modest rise in late payments that lenders watch closely when they set prices.
TransUnion Credit Industry Insights Report, Q2 2026 (released Aug 6, 2026).
Small loans: what $200 to $5,000 really costs
Most rate surveys track larger loans. Smaller loans often carry higher APRs, partly because a lender's fixed costs are spread over fewer dollars. Rates still vary enormously, so the type of loan matters more than ever at this size. Here is a $1,000 loan repaid over 12 months at four different APRs:
| APR | Example | Monthly payment | Total interest |
|---|---|---|---|
| 11.90% | Average bank personal loan | $88.80 | $65.62 |
| 18.00% | Good credit, online lender | $91.68 | $100.16 |
| 28.00% | Maximum on a credit union PAL | $96.51 | $158.07 |
| 35.99% | Maximum in Riverstone’s network | $100.46 | $205.49 |
Even at the top of that range, an installment loan with a fixed payoff date costs far less than repeatedly renewing a payday loan. A $500 payday loan at $15 per $100 costs $75 in fees every two weeks. Renewed for six months, that is $975 in fees on a $500 loan, without paying down any of the principal.
Check for a credit union PAL first. Federal credit unions can offer payday alternative loans of $200 to $1,000 over 1 to 6 months (PAL I) or up to $2,000 over 1 to 12 months (PAL II), capped at 28% APR with an application fee of no more than $20. You need to be a member, and PAL I can require one month of membership first.
If a PAL is not available, compare installment offers by APR and total cost. Through Riverstone, loan requests run from $200 to $5,000 with terms of 3 to 36 months, and lenders in our network do not offer APRs above 35.99%. You can estimate any payment in our calculators before you apply.
Five-year trend: personal loans vs. credit cards
Personal loan rates climbed with the Federal Reserve's 2022–2023 rate increases, peaked in 2024 and have held near 12% since. Card rates rose faster and further and have not come back down.
Over the period, the 24-month personal loan rate rose 2.52 points, from 9.38% to 11.90%. The card rate rose 5.91 points, from 16.45% to 22.36%. The gap between them widened from about 7 points in 2021 to more than 10 today.
How Federal Reserve decisions reach your rate
The Fed does not set personal loan rates directly. It sets a target range for the federal funds rate, the rate banks charge each other overnight. Banks then move their prime rate, which conventionally sits 3 points above the top of that range. Variable-rate products such as credit cards and HELOCs are usually priced off prime, so they react within one or two billing cycles.
Fixed-rate personal loans work differently. Your rate is locked when you sign, so a Fed move does not change a loan you already have. For new loans, lenders weigh their own funding costs, competition and expected losses, which is why personal loan rates move more slowly and by less than the Fed's target.
Every Fed rate change since 2024
- −0.504.75–5.00%
- −0.254.50–4.75%
- −0.254.25–4.50%
- −0.254.00–4.25%
- −0.253.75–4.00%
- −0.253.50–3.75%
- +0.253.75–4.00%
The Fed held rates at every other meeting in this period, including five straight holds from January to July 2026.
The September 2026 increase, approved 12–0, was the first hike since July 2023. The committee said inflation "remains elevated." Banks lifted the prime rate from 6.75% to 7.00% the next day. In practice, that means card balances get a little more expensive, while the case for a fixed-rate loan with a set payoff date gets a little stronger. The next decisions are due October 28 and December 9, 2026. We do not forecast rates; we update this page after each decision.
What sets your personal loan rate
Every lender uses its own model, but these factors appear in nearly all of them:
Payment history makes up 35% of a FICO Score and amounts owed another 30%. Recent late payments weigh heavily.
Monthly debt payments divided by gross income. A lower ratio signals room in your budget for the new payment.
Lenders verify that you can repay, from a paycheck, self-employment, benefits or retirement income.
Very small and very long loans often price higher. Shorter terms usually mean lower total interest.
State law limits what lenders may charge on smaller loans, and some lenders do not operate in every state.
Credit unions, banks and online lenders price differently, and origination fees raise the APR.
How to get a lower personal loan rate
- Check your credit reports first. You can get free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com. Dispute any errors before you apply.
- Prequalify with several lenders. Prequalification usually uses a soft inquiry, which does not affect your score, so you can compare real offers.
- Compare APR, not the interest rate. APR includes fees and must be disclosed under the Truth in Lending Act. It is the only fair side-by-side number.
- Pay down card balances if you can. Lower utilization can lift your score, and amounts owed make up 30% of a FICO Score.
- Choose the shortest term you can afford. A shorter term cuts total interest, even if the monthly payment is higher.
- Ask your credit union about a PAL. For $200 to $2,000, a payday alternative loan is capped at 28% APR.
- Consider a qualified co-signer. A co-signer with strong credit can help you qualify or lower your rate, but they become responsible if you don't pay.
- Set up autopay. Some lenders offer a small rate discount for automatic payments, and on-time payments protect your score.
APR vs. interest rate: a worked example
The interest rate is the cost of borrowing the principal. The APR adds most fees and expresses the total as a yearly rate. On short, small loans an upfront fee can push the APR far above the interest rate, because the fee is spread over very few months.
The loan
- Amount borrowed
- $2,000.00
- Interest rate
- 24.00%
- Term
- 12 months
- Origination fee (5%)
- $100.00
- Cash you receive
- $1,900.00
What it really costs
- Monthly payment
- $189.12
- Total repaid
- $2,269.43
- Interest + fee
- $369.43
- APR
- 34.14%
A 5% fee added about 10 points to the cost of this one-year loan. When you compare offers, line up the APR and the total repaid. A no-fee loan at a slightly higher interest rate can be the cheaper choice.
Rate caps and your rights
There is no single national cap on personal loan rates. Limits come from state law and, for some borrowers, federal law:
- State caps. The National Consumer Law Center's December 2025 survey found that 19 states plus Washington, D.C., cap the APR on a $500, six-month loan at 36% or less. For a $2,000, two-year loan, 31 states plus D.C. do. Delaware and Missouri set no cap on either.
- Military Lending Act. Active-duty servicemembers, including those on active Guard or Reserve duty, and their covered dependents are protected by a 36% cap on most consumer loans. That Military APR includes finance charges, credit insurance and many fees.
- Credit union PALs. Federal credit unions may not charge more than 28% APR on payday alternative loans.
- Truth in Lending Act. Lenders must disclose the APR and finance charge before you sign, so you can compare offers on the same basis.
Red flags: a lender that asks for an upfront fee before funding, guarantees approval without a credit check, or isn't licensed in your state. Report suspected scams at ReportFraud.ftc.gov.
Our methodology and update schedule
We use rates published by regulators and large data providers, and we show the period each figure covers. We do not survey lenders ourselves and we do not publish rates from lenders in our network as market averages.
- Federal Reserve G.19 for bank personal loan and card rates. Personal loan rates are collected quarterly, in February, May, August and November.
- NCUA for credit union and bank averages, published each quarter.
- Marketplace offer data for rates by credit score. These are conditional offers before verification, so booked rates can differ.
- FOMC statements for the federal funds target range, and major-bank announcements for the prime rate.
Because the Fed collects personal loan rates only in quarter-middle months, the November and December releases will not include a new personal loan rate. The next reading covers November 2026 and arrives with the first G.19 release of 2027. Found an error? Email [email protected] and we will correct it and note the change.
Rate questions
Personal Loan Rate FAQ
Short answers to what borrowers ask most about rates, with figures from the sources on this page.
- 11.90%Average 24-month bank personal loan, Aug 2026
- 12.15% – 29.05%Average best offer, excellent to poor credit
- Up to 35.99% APRMaximum in Riverstone’s lender network
What is the average personal loan interest rate right now?
The Federal Reserve's latest reading puts the average 24-month personal loan at commercial banks at 11.90% APR for August 2026. Credit unions averaged 10.64% on 36-month unsecured loans in NCUA's December 2025 survey. Online lenders and borrowers with lower scores often see higher rates.
What is a good personal loan rate?
A rate at or below the bank average of about 12% is strong. In Q4 2025 marketplace data, borrowers with scores of 800 or higher averaged 12.15% on their best offer, and those with 740 to 799 averaged 15.54%.
What APR can I get with a fair credit score?
For scores of 580 to 669, the average best offer was 25.78% APR in Q4 2025 marketplace data, and the average of all offers was 27.79%. A credit union payday alternative loan, capped at 28%, is worth checking for amounts up to $2,000.
Why is my APR higher than my interest rate?
APR includes fees such as an origination fee. A $2,000, 12-month loan at 24% interest with a 5% fee has an APR of 34.14%, because the $100 fee is spread over just one year.
Did the September 2026 Fed hike raise personal loan rates?
It does not change fixed-rate loans you already have. Credit card rates tend to follow the prime rate, which rose to 7.00% on September 17, 2026. New personal loan offers may price higher over time, but lenders also weigh competition and credit risk.
Are credit union loans cheaper than bank loans?
On average, yes. NCUA's December 2025 survey shows 10.64% at credit unions versus 12.00% at banks for a 36-month unsecured loan. You need to become a member to borrow.
What is the highest APR offered through Riverstone?
Lenders in our network do not offer APRs above 35.99%, on loans from $200 to $5,000 with terms of 3 to 36 months. Rates and availability vary by lender and state, and not every applicant will qualify.
Is a payday loan ever cheaper than a personal loan?
Rarely. According to the CFPB, a typical two-week payday loan with a $15 fee per $100 equals an APR of almost 400%. Renewing it repeatedly multiplies the fees.
Sources
- Federal Reserve, G.19 Consumer Credit, released Oct 7, 2026
- Federal Reserve, FOMC statement, Sep 16, 2026
- Federal Reserve, FOMC meeting calendars
- Federal Reserve, November 2026 and December 2026 release calendars
- Prime rate rises to 7.00%, Sep 17, 2026
- FOMC rate decision history, 2024–2026
- NCUA, Credit Union and Bank Rates, 2025 Q4
- LendingTree, personal loan marketplace data, Q4 2025
- TransUnion, Credit Industry Insights Report, Q2 2026
- FICO, Score Credit Insights (average FICO Score 714)
- myFICO, What's in my FICO Scores
- Payday alternative loan (PAL I and PAL II) rules
- CFPB, APR and payday loans
- CFPB, Your rights under the Military Lending Act
- National Consumer Law Center, Predatory Installment Lending in the States, 2025
Loan examples assume fixed rates, equal monthly payments and on-time payments. They are illustrations, not offers of credit.
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