Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were higher for 3-year and 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 Apr. 7 and Apr. 13:
- Rates on 3-year fixed-rate loans averaged 10.53%, up from 10.39% the seven days before and down from 11.33% a year ago.
- Rates on 5-year fixed-rate loans averaged 13.19%, up from 12.94% the previous seven days and 13.15% 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.
Rates for 3-year and 5-year fixed personal loans rose over the past seven days. While rates for 3-year terms only went up a slight 0.14%, rates for 5-year terms saw a larger increase of 0.25%. Despite these increases, rates for 3-year loans are lower than this time last year. Borrowers can take advantage of interest savings with a 3-year personal loan right now.
Whether a personal loan is right for you often depends on multiple factors, including what rate you can qualify for. Comparing multiple lenders and their rates could help ensure you get the best possible personal loan for your needs.