Quick answer: Excellent-credit borrowers usually qualify for the lowest personal loan APRs, while fair-credit borrowers may see rates two to three times higher. Your income, debt-to-income ratio, loan term, and fees also matter.
Your credit score is a pricing signal. Lenders use it to estimate how likely you are to repay on time. A higher score does not guarantee approval, but it can lower your APR and reduce the total cost of borrowing.
Typical personal loan APR by credit score
| Credit score | Tier | Typical APR range |
|---|---|---|
| 740+ | Excellent | 6% to 10% |
| 670-739 | Good | 10% to 16% |
| 580-669 | Fair | 16% to 28% |
| Below 580 | Poor | 25%+ or limited approval |
What else affects your rate?
- Debt-to-income ratio.
- Income stability and employment history.
- Loan amount and term.
- Whether the loan is secured or unsecured.
- Origination fee and lender pricing model.
How to improve your offer
Prequalify with several lenders, choose the shortest term you can afford, avoid borrowing more than needed, and consider a co-signer only if both people understand the repayment responsibility.
See what the rate means in dollars
Test different APRs and terms in the calculator.
Use personal loan calculatorBottom line
A small APR difference can add up quickly. Before accepting an offer, compare monthly payment, total interest, fees, and payoff date.