Rates in a nutshell
- Banks charged an average of 11.86% on 24-month personal loans in Q2 2026, according to the Federal Reserve.
- That is roughly half the 22.15% average on credit card accounts that paid interest, which is why so many people use loans to pay off cards.
- Your credit, income, existing debt and loan term set your APR, and so does which lender you pick.
In this article
Benchmarks to know
- Average 24-month bank personal loan rate: 11.86% (Q2 2026)
- Average credit card rate on accounts charged interest: 22.15% (Q2 2026)
- Federal credit unions cannot charge more than 18% APR on most loans through September 10, 2027
- Unsecured personal loan balances: $281 billion across 26.9 million borrowers (TransUnion, Q2 2026)
Rates from the Federal Reserve G.19 release of September 8, 2026. Balance data from TransUnion.
Personal loan interest rates are quoted as an APR, and that APR is the price tag of your loan. The tricky part is that nobody can tell you your APR until a lender looks at your finances.
What we can do is show you the benchmarks, explain the one comparison mistake that costs borrowers the most, and give you a short list of ways to qualify for less.
Average personal loan interest rates by quarter
| Quarter | 24-month personal loan | Credit card (charged interest) |
|---|---|---|
| Q2 2025 | 11.57% | 22.25% |
| Q3 2025 | 11.14% | 22.83% |
| Q4 2025 | 11.63% | 22.30% |
| Q1 2026 | 11.36% | 21.52% |
| Q2 2026 | 11.86% | 22.15% |
These are bank averages for people who qualified. Online lenders serve a wider range of borrowers, so their APRs can run from single digits for excellent credit to about 36% for riskier profiles. The 18% federal credit union ceiling runs through September 10, 2027.
The comparison mistake that costs the most
The "cheaper" loan that was not
Offer A: 10.5% interest with a 6% origination fee. Offer B: 12% interest and no fee. Both are $10,000 over three years.
Offer A looks cheaper. But the fee comes out first, so you receive $9,400. Count the fee and Offer A's APR is about 14.8%, well above Offer B's 12%.
That is why lenders must show the APR, and why it is the only number to compare.
Example math with fixed monthly payments. Your offers will differ.
The interest rate is the cost of borrowing the money. The APR adds required fees like origination fees, so it shows the true yearly cost.
See what rate you could get
SponsoredWhat affects your personal loan interest rate
How is your credit?
The biggest factor. Late payments, collections and maxed-out cards push rates up.
Can you afford the payment?
Lenders look at income, job stability and your debt-to-income ratio.
How long do you want to borrow?
Longer terms often carry higher rates and always cost more total interest.
Can you add security?
Collateral or a co-signer with strong credit can lower your rate.
Which lender?
Banks, credit unions and online lenders price risk differently. Compare at least three.
Check today's rates where you live
Enter your ZIP code to see lenders and loan options available where you live. Checking options does not commit you to anything.
Six ways to land a lower rate
Your pre-application checklist
Frequently asked questions
What is a good interest rate on a personal loan?
Anything at or below the Federal Reserve bank average of 11.86% (Q2 2026) is competitive. Borrowers with excellent credit can find lower rates, while fair or poor credit usually means a higher APR.
What is the highest APR a personal loan can have?
It depends on the state and lender. Many mainstream lenders cap APRs at about 36%. Federal credit unions are limited to 18% on most loans through September 10, 2027.
Do personal loans have fixed rates?
Most do. A fixed rate means your monthly payment stays the same for the life of the loan.
Does checking my rate hurt my credit?
Prequalifying usually uses a soft credit check, which does not affect your score. A formal application triggers a hard inquiry, which can lower your score slightly for a short time.
Ready to compare personal loan offers?
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