Current Personal Loan Rates and How to Get the Best Deal
Rates on Personal Loans Drop, Making Major Purchases More Attainable
Last week, there was good news for potential borrowers as rates on personal loans saw a decrease. This means that for qualified individuals, securing a personal loan with a decent interest rate is now more achievable, opening up opportunities for financing major purchases or projects.
According to data from Credible.com’s personal loan marketplace, the average fixed rate on a three-year personal loan for borrowers with a credit score of 720 or higher dropped to 15.48% from 15.80% the previous week. Similarly, the average rate on a five-year personal loan decreased by 0.55% to 18.76% from 19.31%.
It’s important to note that these rates are based on well-qualified borrowers, and individual rates may vary depending on factors such as creditworthiness and the specific loan chosen. However, these recent rate drops present an opportunity for those looking to secure a personal loan at a more favorable rate.
For individuals aiming to secure the best rates possible, there are steps that can be taken to improve their chances. Paying down existing debt to lower the debt-to-income ratio and working on improving credit scores are two effective strategies. A credit score of 720 or higher is typically associated with the best loan terms, but taking proactive steps to boost credit scores can also lead to more favorable rates.
Once borrowers have an idea of their personal loan interest rate, they can use tools like the Forbes Advisor personal loan calculator to estimate monthly payments and total interest paid over the life of the loan. This can help individuals make informed decisions about their borrowing needs and financial commitments.
Overall, the recent drop in personal loan rates presents a promising opportunity for qualified borrowers to secure financing for their major purchases or projects. By taking proactive steps to improve creditworthiness and understanding the loan terms, individuals can make the most of these favorable rates and achieve their financial goals.
