Daily personal loan rates for June 26, 2024: Rates trending upward
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Published 4:56 p.m. UTC June 26, 2024
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The rate you’re offered on a personal loan will depend on the lender along with other factors like your credit score and repayment term. Other strategies could also help you get a better rate, such as shopping around with multiple lenders or building your credit score.
Here are today’s rates for three- and five-year personal loans as well as average rates by credit score.
Personal loan rates today
Today, the average rate for a three-year personal loan is 15.69% while the average rate for a five-year personal loan is 19.66%. This is mixed compared to last month’s 15.66% and 19.88% for three- and five-year loans, respectively.
3-year personal loan rates
Today, the rate for a three-year personal loan sits at 15.69% — a rise from last week’s 15.48%, according to data from Credible. This is also up from last month’s 15.66% as well as last year’s 14.63%.
A loan with today’s rate will result in a monthly cost of $350.04 for every $10,000 you borrow. This is an increase from last week’s $349.01.
5-year personal loan rates
Today, the rate for a five-year personal loan sits at 19.66% — a rise from last week’s 18.76%, according to data from Credible. This is also down from last month’s 19.88% as well as an increase from last year’s 18.09%.
A loan with today’s rate will result in a monthly cost of $263.05 for every $10,000 you borrow. This is an increase from last week’s $258.09.
Today’s personal loan rates by credit score
Your credit score is one of the biggest factors that lenders use to determine your interest rate. In general, the higher your credit score, the better your rate will be.
Frequently asked questions (FAQs)
You generally won’t be able to negotiate your rate when you apply for a personal loan since lenders typically base your rate and terms solely on your application details and credit information. However, some lenders might make an exception — such as in cases where you already have a relationship with the institution.
However, there are other options that could help you get a better interest rate, such as:
- Shopping around and comparing your options with as many lenders as possible to find a good deal.
- Taking advantage of rate discounts, such as autopay discounts or loyalty discounts for existing account holders.
- Applying with a co-signer or joint applicant.
- Building your credit to qualify for better rates in the future.
Some lenders might also provide assistance if you’re struggling to make your payments. For instance, Discover offers payment deferral, temporary payment reduction and repayment term extensions to borrowers experiencing financial hardship. You could also consider a debt management plan or other debt relief options.
When you apply for a personal loan, the lender will perform a hard credit check while determining if you qualify. This can cause a slight drop in your credit score — usually by five points or less. While a hard credit inquiry can remain on your credit report for up to two years, it will only affect your credit score for a year at most.
Additionally, taking out a personal loan could help your credit score in the long run. For example, you could see an improvement in your score if you make on-time payments or are able to diversify your credit mix. Ultimately, a personal loan might have a greater positive impact on your credit compared to any initial negative effects.
While personal loan rates can range up to 36%, some lenders offer rates under 6% for eligible borrowers. Keep in mind that you’ll generally need good to excellent credit to qualify for the lowest rates available.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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