What is the average personal loan rate for February 2026?
Keeping track of average personal loan rates can give you an idea of how much you’ll pay for a personal loan for debt consolidation, home improvement, emergencies or any other financial goal that requires quick funding with a fixed monthly payment. The average is often well below average credit card rates, making personal loans a…
Keeping track of average personal loan rates can give you an idea of how much you’ll pay for a personal loan for debt consolidation, home improvement, emergencies or any other financial goal that requires quick funding with a fixed monthly payment. The average is often well below average credit card rates, making personal loans a great choice for credit card debt consolidation, so long as you qualify for those average rates.
If you’re very rate-conscious, it’s also important to track how the lowest available rates are trending. You may qualify for a rate lower than current home equity or HELOC rates if you have excellent credit and know which lenders are offering the best rates. Knowing the averages and lowest rates can give you the information you need to make the best borrowing decision for your finances.
According to personal loan Bankrate Monitor data, as of Feb. 25, 2026, the average personal loan rate is 12.26% for customers with a 700 FICO score, $5,000 loan amount and three-year repayment term. Your rate will vary depending on your credit score, loan term, loan amount and the type of lender you choose.
The Bankrate Monitor survey collects rates from the 10 largest banks and thrifts in the 10 largest U.S. markets, assuming you don’t already have a relationship with an institution and aren’t set up for automatic payments.
Bankrate newsworthy rate
LightStream offers the lowest personal loan rate offered among Bankrate’s best personal loan lenders at 6.49 percent. In January 2025, the lowest rate was 6.94 percent. However, the best rates typically go to excellent-credit borrowers with a low debt-to-income ratio and shorter repayment term.
If you have excellent credit, you may qualify for a rate significantly lower than the overall Bankrate Monitor average.
Date
Median lowest rate*
Lowest available rate*
2/25/26
8.01%**
6.49%
1/7/26
8.74%
6.49%
12/3/25
8.74%
6.24%
11/5/25
8.74%
6.24%
10/1/25
8.44%
6.70%
9/3/25
8.59%
6.49%
8/6/25
8.97%
6.49%
7/9/25
8.99%
6.49%
** On Feb. 25, 2026, Bankrate stopped tracking two high-interest lenders, resulting in a lower median.
The lowest available rate among Bankrate-featured lenders is 6.49%, while the highest is almost 36%.
One thing to watch out for when it comes to online lenders is the origination fee. It can be as high as 12% of your loan amount and is subtracted from any loan proceeds before you receive your money.
That’s why it’s important to review the annual percentage rate (APR) on any personal loan offers you receive. The number reflects the full cost of your loan, including fees. Try to choose online lenders that don’t charge origination fees, if you qualify.
According to recent data from the National Credit Union Administration, the average finance rate for personal loans offered by commercial banks is 12.06% for a three-year term.
You’ll typically need a high credit score and a solid work history to get approved for a personal loan at a bank. However, banks may offer more competitive rates for loans secured by a portion of your savings deposits.
Learn more: Secured vs. unsecured personal loans: Key differences
According to NCUA data, the national average rate for a three-year personal loan at a credit union was just 10.72% in 2025’s third quarter. Average maximum rates are significantly lower than banks and online lenders — in fact, at federal credit unions they are legally capped at 18% — making credit unions worth researching if you’re eligible for membership.
A recent personal loan shopping report by a Bankrate expert found that credit unions tend to offer slightly lower rates for longer terms. You also typically won’t pay any fees, which keeps your APR and quoted rate the same and means you’ll take home all the money you borrow.
Personal loan average rates give you an idea of the rates paid by the average consumer. You’ll typically find lower average rates at banks and credit unions compared to online lenders and marketplace lending sites like Bankrate. However, some online lenders offer very low rates for borrowers with excellent credit who qualify for a short term (usually three years).
There are a few steps you can take to be in the right place at right time to get the lowest personal loan rates:
Check our rate pages regularly. We have a team of experts that tracks the rates of dozens of lenders daily to ensure you see the most current rates they’re offering.
Keep your credit score in tip-top shape. Minimize your credit card use to avoid a temporary, but large, dip in your score due chasing travel or cash-back rewards.
Don’t wait if you see the rate you want. Lenders change rates frequently based on factors beyond your control. If you see a personal loan rate that helps you meet your financial goals, apply sooner rather than later.
If you don’t know what you qualify for, consider getting prequalified offers on a personal loan marketplace site like Bankrate. With some basic information about your loan amount, credit score and loan term, you may be matched with several different lenders. You can review the offers side by side to see which is the best fit for you.
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There are a few different ways to look at the ups and downs in average personal loan rates when you’re deciding whether a personal loan is the best financing choice for you.
To decide whether credit card consolidation makes sense. Compare the average personal loan rate with the average rate on your credit cards to see if a debt consolidation loan is worth it.
To intuit who lenders are lending to. If averages are dropping, that could be a sign that lenders may currently prefer higher credit-score borrowers. If they’re rising, lenders could be opening up more options for borrowers with less-than-stellar credit. Still, bad credit loan rates will likely be much higher.
To watch for signs that excellent credit rates are dropping. If you’re shopping for a specific rate, a drop in the average could mean lenders are making more loans to excellent credit borrowers. That would be a good time to check the minimum rates to see if they’ve dropped.
If you like what you’re seeing, it may be time to see what kind of loan offers you can get. Follow standard financial principles like paying bills on time, minimizing your credit card use and avoiding lenders that charge high fees.
You’ll have a better shot at qualifying for low-interest rate personal loans if your finances are in good shape. Watch for the lowest available rates for opportunities. With a little extra attention, you might end up with a lower rate on your personal loan for home improvement than your neighbor got on his home equity renovation loan.
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