Personal loan interest rates plummet for both 3-year and 5-year terms

The latest interest rate trends for non-public loans from the credible market, updated weekly (iStock).

Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were lower for 3-year fixed-rate loans 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 for a lender between Dec. 27 and Jan. 3:

Personal loans have a popular way to consolidate and settle credit card debts and other loans. They can also be used to cover unforeseen expenses such as medical bills, coping with a major purchase, or financing home renovation projects.

Interest rates on non-government loans have fallen sharply over constant periods of 3 years and five years during the following week. Rates for a five-year period fell by more than a percentage point, while rates for a non-government loan interest rate for any of the terms are lower than last year at this time, especially five-year rates, which are almost a percentage point of decline. if they now block a non-public loan at a constant rate at 3 or 5 years.

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

It’s always a good idea to comparison shop on sites like Credible to understand how much you qualify for and choose the best option for you.

These are the most recent trends in interest rates on credible market non-public loans, updated weekly.

The chart above shows the pre-rated average rates for borrowers with a credit score of 720 or higher who have used the credible market for a lender.

For the month of December 2021:

Personal loan rates vary greatly depending on the credit score and the duration of the loan. If you’re curious about what kind of non-public loan rate you may be entitled to, you can use an online tool like Credible to compare features of other lenders themselves. Checking your rates won’t make your credit score.

In December, the average prequalified rate selected by borrowers was:

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

Depending on factors such as your credit score, which type of personal loan you’re seeking and the loan repayment term, the interest rate can differ.

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

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

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

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

If your financial situation allows, applying for a shorter term could help you score a lower interest rate. Keep in mind the shorter term doesn’t just benefit the lender — by choosing a shorter repayment term, you’ll pay less interest over the life of the loan.

You may be familiar with the concept of a cosigner if you have student loans. If your credit isn’t good enough to qualify for the best personal loan interest rates, finding a cosigner with good credit could help you secure a lower interest rate.

Just remember, if you default on the loan, your cosigner will be on the hook to repay it. And cosigning for a loan could also affect their credit score.

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 rates. Online lenders typically offer the most competitive rates — and can be quicker to disburse your loan than a brick-and-mortar establishment.

But don’t worry, comparing rates and situations doesn’t have to be a tedious process.

Credible makes it easy. Simply enter the amount you need to borrow and you will be able to compare several lenders with the one that suits you best.

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

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