Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were lower for 3-year and higher for 5-year fixed rates compared to the previous seven days.
For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender between May 9 and May 15:
- Rates on 3-year fixed-rate loans averaged 10.98%, down from 11.10% the seven days before and 11.52% a year ago.
- Rates on 5-year fixed-rate loans averaged 13.02%, up from 12.83% the previous seven days and down from 13.10% a year ago.
Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical bills, take care of a major purchase or fund home improvement projects.