Today’s Personal Loan Rates: September 27, 2021—Rates Decline

China iTech Ghana
Tuesday, September 28, 2021 | views Last Updated 2021-09-28T18:18:07Z

Rates on personal loans dropped last week. So long as you’re a qualified borrower, you pick up a decently low interest rate. For many, this means financing a major purchase or project is within reach.

From September 20 to September 24, the average fixed interest rate on a three-year personal loan was 10.70% for borrowers with a credit score of 720 or higher who prequalified on’s personal loan marketplace. That’s down 0.44% from the previous week, according to The average rate on five-year personal loans fell last week from 14.88% to 14.35%.

The most qualified borrowers generally receive the best rates. In fact, well-qualified borrowers may receive a rate that’s significantly lower than average. The rate you receive depends on several factors, including your creditworthiness and the loans available through your chosen lender.

Two quick ways to help you receive more favorable rates include paying down existing debt to help lower your DTI and improving your credit score. Personal loan interest rates are based on a number of factors, including your overall creditworthiness, credit score, income and debt-to-income (DTI) ratio.

While qualification requirements differ across lenders, a minimum credit score of 720 will typically yield you the best terms. If your score falls below this marker, and you’re on a quest for the lowest rate possible, you can take action to improve your score. Try strategies like lowering your credit utilization ratio, removing errors from your credit report and paying your bills early or on time.

Calculate Monthly Personal Loan Payments

You can estimate your monthly payment and how much you’ll pay in interest once you know your personal loan interest rate, term and amount.

Let’s say you get a three-year, $5,000 personal loan at a fixed rate of 10.70%. You’d pay approximately $163 monthly and approximately $867 in interest over the life of the loan, according to the Forbes Advisor personal loan calculator. You’d pay $5,867 in total over those three years, which includes both principal and interest.

Average Personal Loan Interest Rates by Credit Score

The rates below are average estimated personal loan interest rates according to VantageScore risk tiers, according to Experian. Though the rates below can serve as a general guideline, note that interest rates are ultimately set and determined by lenders.

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  • Today’s Personal Loan Rates: September 27, 2021—Rates Decline

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