The average personal loan interest rate by state, lender, and credit score

Personal loan interest rates are lower than they were five years ago. Maskot/Getty

• The average interest rate for a 24-month personal loan was 9.41% in February 2022, according to data from the Federal Reserve. 
• The interest rate you get on your personal loan could look different depending on several factors.
• Before deciding on a personal loan shop around with several lenders to find the best deal. 

The average interest rate for a 24-month personal loan was 9.41% in February 2022, according to data collected by the Federal Reserve.

Personal loans can be used for a variety of reasons, including paying for large purchases and covering emergencies. Oftentimes, personal loans are also used for debt consolidation, where a loan is used to roll credit card debt into one loan and one monthly payment. Personal loans can sometimes have a lower interest rate than credit cards — the average credit card carried an APR of 16.17% in the first quarter of 2022. 

Before getting a personal loan, consider all the factors that could change your interest rate. A lower credit score could mean paying more for your loan, making it less helpful for your purchase. Comparing offers from several different lenders could also aid in finding the lowest interest rate. 

Average personal loan rate by year

The average personal loan interest rate has fluctuated over time, and it's now slightly above its lowest point in 2021. There are several factors that influence the average personal loan interest rate, and the interest rate on individual loans, including the Federal Funds rate, or the amount that banks pay to borrow money. Other factors include the reason for the loan, and the loan term. 

* Rates for a 24-month personal loan.

Since 2017, the average personal loan interest rate has risen and fallen. Since 2019, the average personal loan interest rate has fallen by almost a whole percentage point to 9.41% in February 2022. 

Average personal loan interest rate by state

Where you live will also have an effect on your personal loan interest rate. State lending laws can influence the average personal loan interest rates available. Across the nation, personal loan interest rates can range by more than 5 percentage points, depending on where you live. Here's the average personal loan interest rate in each state, according to S&P Global data from May 2022.

*$5,000 unsecured personal loan, 36 months

Hawaii had the lowest personal loan interest rates of all 50 states at 6.86%, while Rhode Island has the highest, with the average personal loan carrying an interest rate of 11.89%. 

Average personal loan rate by lender

Personal loans are sometimes available through traditional banks like Wells Fargo. They can also be offered by credit unions, member-owned banking institutions that often offer lower interest rates.

According to data from the National Credit Union Association, credit unions could offer lower interest rates on personal loans:

*Rates current as of March 2022.

Credit unions often have membership requirements, but they're generally simple to meet, and are based on living in a certain area. If you're already a member of a credit union, it might be worth checking to see how its personal loan interest rates compare with other offers from banks and online lenders. It could be more affordable to borrow from a credit union.

Average personal loan rate by credit score

Your credit score will play a big role in the amount you'll pay to borrow. A credit score is like a financial grade point average, factoring together information including your borrowing and repayment history. Credit scores are reported as one number between 300 and 850. 

Like with many other types of loans, the higher your credit score, the less interest you'll pay over the life of a personal loan. 

The amount you'll pay for your personal loan will vary dramatically depending on your credit score, from about 5% APR for those with the highest scores to over 30% for those with lower scores. According to data from Bankrate, these are what the highest rates look like for each credit score range. 

Since your credit score can have such a big effect on your interest rate, checking your credit score is a good way to start your search for a personal loan. Checking your credit score should always be free. Once you know your credit score, start shopping for personal loans, and compare the interest rates and loan terms available to you from several different lenders.