Personal loan interest rates plummet for 3- and 5-year fixed-rate loans

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote products from our lender partners, all opinions are our own.


The latest trends in interest rates for personal loans from the Credible market, updated weekly. (iStock)

Borrowers with good credit find personal loan within the past seven days prequalified for rates that are lower for 3- and 5-year fixed-rate loans compared to the previous seven days.

For borrowers with credit scores of 720 or higher who used the Credible marketplace to choose a lender between Nov. 3 and Nov. 9:

  • Rates on 3-year fixed-rate loans averaged 12.36%, up from 13.52% in the previous seven days and up from 10.88% last year.
  • Rates on 5-year fixed-rate loans averaged 15.93%, up from 16.54% in the previous seven days and up from 14.19% last year.

Personal loans have become a popular way to Consolidate and pay off credit card debt and other loans. It can also be used to cover unexpected expenses such as medical billstake care of a major purchase or finance home improvement projects.

Personal loan interest rates have fallen significantly over the past seven days for 3- and 5-year fixed-rate loans. Rates on 5-year loans fell by 0.61 percentage points, while 3-year loans saw a larger decrease of 1.16 percentage points. Despite today’s reductions, interest rates for both loan terms are higher than at this time last year. However, borrowers can take advantage of interest savings with a 3- or 5-year personal loan today. Both loan terms offer interest rates that are much lower than higher borrowing options such as credit cards.

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Whether a personal loan is right for you often depends on many factors, including what rate you qualify for. Comparing multiple lenders and their rates can help ensure you get the best possible personal loan for your needs.

This is always a good idea comparison shop on sites like Credible to understand how you qualify and choose the best option for you.

Here are the latest trends in personal loan interest rates from the Credible market, updated monthly.

Weekly personal loan trends


The chart above shows the average prequalified rates for borrowers with credit scores of 720 or higher who used the Trusted Marketplace to choose a lender.

For the month of October 2022:

  • Rates on 3-year personal loans averaged 12.37%, up from 11.65% in September.
  • Rates on 5-year personal loans averaged 15.84%, up from 15.60% in September.

Personal loan rates vary by credit score and loan term. If you are interested in what type of personal loan rates you may qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates does not affect your credit score.

All Credible lenders in the marketplace offer fixed-rate loans at competitive rates. Because lenders use different methods to evaluate borrowers, it’s a good idea to request personal loan quotes from several lenders so you can compare your options.

Current personal loan rates by credit score


In October, the average prequalified rate chosen by borrowers was:

  • 9.90% for borrowers with credit scores of 780 or higher who choose a 3-year loan
  • 29.90% for borrowers with credit scores below 600 who choose a 5-year loan
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Depending on factors such as your credit score, what type of personal loan you are looking for and the loan repayment term, the interest rate may vary.

As the chart above shows, a good credit score can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and higher payment terms.

How to get a low interest rate

Many factors influence the interest rate that a lender can offer you on a personal loan. But you can take some steps to increase your chances of getting a lower interest rate. Here are some tactics to try.

Increase credit score

Generally, people with higher credit scores qualify for lower interest rates. Steps to help you improve your credit score over time include:

  • Pay bills on time. Payment history is the most important factor in your credit score. Pay all your bills on time for the amount owed.
  • Check your credit report. Look at your credit report to make sure there are no errors on it. If you find errors, dispute them with the credit bureau.
  • Lower your credit utilization ratio. Paying off credit card debt can improve this important credit-scoring factor.
  • Avoid opening new credit accounts. Just apply and open the credit accounts you need. Too many hard inquiries on your credit report in a short period of time can lower your credit score.

Choose a shorter loan term

Personal loan repayment terms can vary from one to several years. In general, shorter terms come with lower interest rates, because the lender’s money is at risk for a shorter period of time.

If your financial situation allows, applying for a shorter term can help you get a lower interest rate. Remember that a shorter term doesn’t just benefit the lender – by choosing a shorter repayment term, you’ll pay less in interest over the life of the loan.

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Get a cosigner

You may be familiar with the concept of a cosigner when it comes to student loans. If your credit is not good enough to qualify for the best personal loan interest rates, find a cosigner along with good credit can help you secure a low interest rate.

Just remember, if you default on the loan, your cosigner is on the hook for paying it. And cosigning for a loan can also affect their credit score.

Compare rates from different lenders

Before applying for a personal loan, it’s a good idea to shop around and compare offers from several different lenders to get the lowest price. Online lenders often offer the most competitive rates – and can disburse your loan faster than a brick-and-mortar establishment.

But don’t worry, comparing rates and terms doesn’t have to be a time-consuming process.

Credible makes it easy. Just enter how much you want to borrow and you’re done compare multiple lenders to choose the one that makes the most sense for you.

About Credible

Credibility is a multi-lender marketplace that empowers consumers to discover the financial products best suited for their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to easily compare accurate, personalized loan options – without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unparalleled customer experience, as demonstrated above 4,500 positive Trustpilot reviews and a TrustScore of 4.7/5.


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