Today’s personal loan rates for June 10, 2024: Rates seem to be trending up
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Published 1:32 p.m. UTC June 10, 2024
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While rates on personal loans are set by individual lenders, the rate you’re offered will depend on a variety of factors, such as your credit score and repayment term. It’s also important to shop around and compare your options with multiple lenders to find a good deal.
Here are today’s personal loan rates along with the average rates offered by credit score.
Personal loan rates today
Personal loan rates are trending upward overall. The average three-year personal loan rate is 15.80%, and the average five-year personal loan rate is 19.31%.
3-year personal loan rates
Personal loan rates for three-year loans increased to 15.80% from last week’s 15.70%, according to data from Credible. This is higher than last month’s 14.43% as well as higher than last year’s 14.43%.
At today’s rate, you’ll pay $350.58 each month for every $10,000 you borrow — more than last week’s $350.09.
5-year personal loan rates
Personal loan rates for five-year loans decreased to 19.31% from last week’s 19.91%, according to data from Credible. This is up from last month’s 18.85% as well as up from last year’s 18.04%.
At today’s rate, you’ll pay $261.11 each month for every $10,000 you borrow — down from last week’s $264.44.
Today’s personal loan rates by credit score
You’ll typically need a good credit score (usually a FICO score of at least 670) to qualify for a good rate on a personal loan. Generally, borrowers with good to excellent credit get approved for the lowest available rates.
Frequently asked questions (FAQs)
While the exact credit you’ll need for a personal loan will depend on the individual lender, you’ll generally need good to excellent credit to get approved. A good credit score is usually considered to be 670 or higher.
There are also several lenders that accept poor or fair credit scores. Just keep in mind that bad credit loans usually come with higher interest rates compared to good credit loans.
Whether it’ll be better for you to borrow from a bank or credit union will depend on your circumstances. Because credit unions are nonprofit organizations, they tend to offer lower rates on personal loans compared to banks and are also sometimes more lenient with credit score requirements. However, you’ll have to join the credit union to proceed with a loan. Every credit union has its own eligibility requirement for membership.
Banks, on the other hand, are for-profit institutions, and they generally charge higher rates and fees on personal loans compared to credit unions. But if you already have an account with a bank, you might be able to take advantage of loyalty rate discounts that could help you save money on interest charges. Additionally, almost anyone can open a bank account by providing identification and an initial deposit.
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.
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.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
