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This week’s personal loan rates lower for 3-year loans

Here at Credible Operations, Inc. (NMLS No. 1681276) (hereafter referred to as “Credible”), our goal is to give you the tools and confidence you need to improve your finances. We promote the products of financial institutions we work with in exchange for our services, but all opinions are our own.

Weekly updates on the latest trends in personal loan interest rates from the Credible marketplace. (iStock)

Borrower with good credit check personal loan In the past 7 days, you were prequalified for a lower interest rate on a 3-year loan and a higher interest rate on a 5-year loan compared to fixed-rate loans in the previous 7 days.

For borrowers with a credit score of 720 or higher who used the Credible Marketplace to select a lender between February 22nd and February 28th:

  • Interest rates on three-year fixed rate loans averaged 13.96%, down from 15.00% seven days ago and up from 11.81% a year ago.
  • Interest rates on five-year fixed rate loans averaged 21.94%, up from 21.02% in the previous seven days and 15.27% a year ago.

Personal loans have become a popular way to consolidate debt and pay off credit card debt and other loans. It can also be used to cover unexpected emergency expenses, such as medical bills, or to make large purchases. Fund home improvement projects.

Average interest rate for personal loans

Average interest rates on personal loans have decreased for 3-year personal loans and increased for 5-year personal loans over the past seven days. Three-year loan interest rates fell by 1.04 percentage points, while five-year loan interest rates rose by 0.92 percentage points. Interest rates for both loan terms remain significantly higher than at the same time last year, increasing by 2.15 percentage points for the three-year loan and 6.67 percentage points for the five-year loan.

Still, borrowers can take advantage of interest savings on three-year or five-year personal loans. That’s because both loan terms offer lower interest rates on average than more expensive borrowing options like credit cards.

However, whether a personal loan is right for you depends on multiple factors, including the interest rate you can qualify for, which is primarily based on your credit score. By comparing interest rates from multiple financial institutions, you can ensure you get the best personal loan for your needs.

Before applying for a personal loan, use a personal loan marketplace like Credible. comparison shop.

Personal loan weekly interest rate trends

Here are the latest developments in personal loan rates, updated weekly from the Credible Marketplace.

The chart above shows the average pre-qualification interest rate for borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender.

For January 2024:

  • Three-year personal loan interest rates averaged 22.16%, down from 22.79% in December.
  • Five-year personal loan interest rates averaged 25.26%, up from 25.17% in December.

Personal loan interest rates vary widely depending on your credit score and loan term. If you want to know what kind of personal loan rates are available to you, you can use online tools like Credible to compare options from different private lenders.

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

Current personal loan interest rates by credit score

The average pre-qualifying interest rates selected by borrowers in January are:

  • 13.23% for borrowers with a credit score of 780 or higher who choose a 3-year loan.
  • 30.79% for borrowers with credit scores below 600 who choose the 5-year loan.

Interest rates can vary depending on factors such as your credit score, the type of personal loan you’re seeking, and the loan repayment period.

As shown in the chart above, higher credit scores mean lower interest rates, and loans with fixed interest rates and longer repayment terms tend to have higher interest rates.

How to get lower interest rates

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

increase credit score

Generally, people with higher credit scores qualify for lower interest rates.Helpful steps improve credit score Over time they include:

  • Pay your bills on time: Payment history is the most important factor in your credit score. Please pay all bills on time.
  • Check your credit report: Look at your credit report and make sure there are no errors. If you find any mistakes, dispute them with the credit bureaus.
  • Lower your credit utilization: Paying off your credit card debt can improve this important credit score factor.
  • Avoid opening new credit accounts. Please apply and open only the credit accounts you actually need. Too many hard inquiries on your credit report in a short period of time can lower your credit score.

Choose a short loan term

Personal loan repayment terms vary from one year to several years. Generally, the shorter the term, the lower the interest rate because the lender’s funds are at risk for a shorter period of time.

If your financial situation allows, you may be able to get a lower interest rate by signing up for a shorter term. Keep in mind that shortening the term doesn’t just benefit the lender. Choosing a shorter repayment term means you’ll pay less interest over the life of your loan.

Get a joint guarantor

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

Keep in mind that if you default on your loan, your co-signer will be forced to make the repayments. Cosigners on your loan can also affect your credit score.

Compare interest rates from different lenders

Before applying for a personal loan, it’s a good idea to research and compare offers from several different lenders to get the lowest interest rate. Online lenders typically offer the most competitive interest rates and may be able to close your loan faster than brick-and-mortar locations.

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

Trust makes it easier. Simply enter the amount you want to borrow and compare multiple lenders to choose the most suitable one.

About Credible

Credible is a multi-lender marketplace that helps consumers find the best financial products for their situations. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or impacting their credit scores. Masu. The Credible Marketplace provides an unparalleled customer experience, including: Over 6,500 positive Trustpilot reviews Trust score is 4.7/5.

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