Need a more flexible stream of cash for home improvements, car repairs, or life’s other emergencies?

When it comes to borrowing money for larger expenses, a personal loan can be a great choice. That’s because personal loan rates are (typically) lower than traditional credit options.

However, It’s important to make sure you’re getting the best personal loan interest rates possible. Lower personal loan rates mean less cash out of your pocket each month thanks to less interest.

Here’s how you should begin your search for the best personal loan rates.

What are today’s personal loan rates?

Personal loan interest rates tend to be lower than other options like credit cards, personal lines of credit, or even student loans.

This makes unsecured personal loans viable options for financing new and necessary purchases, as well as refinancing past debts that have higher interest rates.

What’s more, personal loan rates have actually steadily decreased over the past five years.

Personal loan rates today are approximately 1.4 percentage points lower than they were in 2011, according to rates data from the National Credit Union Association (NCUA) compiled from March 2011 through September 2016.

And here are personal loan rate averages for a 36-month unsecured fixed rate loan, according to NCUA data released in September 2016:

• Banks: 10.12%
• Credit unions: 9.22%

What’s more, the downward trend of personal loan interest rates is good news for borrowers. Today, personal loans are the most affordable they’ve been in years.

Personal loan rates by credit score

Yet, at the end of the day, the costs of your personal loan will depend on your ability to meet a lender’s credit requirements.

The main determinant of the personal loan rates you’re offered will be your creditworthiness. The lender usually determines this based on your credit score and history, as well as personal income and other financial information.

The better your credit score and the higher your income, the greater your chances of getting the best personal loan rates.

Here are typical unsecured personal loan rates by credit score:

• Excellent (720 or more): around 4.00% to 11.00%
• Good (680 to 719): around 4.00% to 15.00%
• Average (630 to 679): around 10.00% to 20.00%
• Poor (630 and below): around 25.00% to 30.00% or higher

In addition to a higher credit score, a higher income can also help you qualify for competitive personal loan rates.

Where can I find the best personal loan rates?

No matter your credit score, shopping around and comparing lenders’ advertised rates can help you save. Certain types of personal loan providers offer better rates and loan terms than others.

Here are the starting personal loan rates for different types of lenders:

• Banks: 6.49% APR
• Credit unions: 5.99% APR
• Online lenders: 2.13% APR
• Peer-to-peer lenders: 5.32% APR

Note that these are starting APRs, which usually require excellent credit to qualify for.

When comparing personal loan interest rates, check out our online marketplace to compare and contrast what various lenders have to offer. Lenders listed include:

• SoFi
• Payoff
• Earnest
• Citizens Bank

Banks

The first place many people look for personal loans is through their bank.

Since you already have an established relationship with this bank, chances are they may be more willing to approve your personal loan and offer competitive rates.

Additionally, banks usually offer a wide range of financial products. So they might have more loan terms and options available for you.

Credit unions

Credit unions provide some of the most competitive personal loan rates around.

As not-for-profit financial institutions, credit unions are more focused on offering favorable products to members than making money. That’s why a credit union’s personal loan rate offer is usually lower than one offered by a bank.

In fact, over the past few years, credit unions’ average personal loan rates have been approximately 1.24 percentage points less than those offered by banks. That’s according to the compiled rates data from the NCUA from March 2011 through September 2016.

Online lenders

Online personal loan providers can also be a great option to find the best personal loan rates.

These institutions usually have less overhead than their brick-and-mortar counterparts thanks to operating solely online. And, will often have some of the most competitive interest rates around.

Additionally, some online lenders have credit requirements that are less strict, allowing them to service borrowers with less-than-perfect credit.

Peer-to-peer lenders

Another option similar to online lenders is peer-to-peer (P2P) lenders.

Like online personal loans, P2P loans are also available to a wider range of borrowers than more traditional options.

P2P marketplaces allow individuals to loan money directly to borrowers. Peer-to-peer personal loans often have lower interest rates. However, be on the lookout for potentially higher origination fees.

How to lower your personal loan interest rate

Choosing the right lender and maintaining positive credit are central to getting the best personal loan rates.

But once you find a lender and are ready to borrow, there are additional steps you can take to lower your personal loan rate.

Look for loan rate discounts

Financiers will often offer a personal loan rate discount to lenders who enroll in automatic payments or meet other requirements.

A typical interest rate discount for automatic withdrawals is 0.25%. However, some lenders might offer more.

Wells Fargo, for instance, offers a personal loan rate discount of 0.50% for borrowers with a qualifying Wells Fargo consumer checking account and enrollment in automatic payments.

Opt for a shorter loan term

When setting the terms of your personal loan, you might notice that lenders offer lower rates on loans with shorter terms.

With a shorter loan, the lender will get its money back faster and take on less risk. And this lower risk for the lender can mean lower interest for you too.

So if you can afford higher monthly payments, consider signing up for a shorter loan length, It may be a smart way to lower your personal loan interest rate and save money on interest as well.

Consider secured personal loans

Some of the best personal loan rates can be found on secured loans.

A secured loan is guaranteed by assets owned by the borrower. This can either be property such as a car, or cash like with a certificate-secured loan.

Credit unions, such as America First, often offer these secured loans with low interest rates.

Additionally, borrowers with bad credit can more easily get approved for secured personal loans. This can make them a smart option for consumers looking to improve their credit.

Do your homework

Ultimately, you are your best advocate in your search for the lowest personal loan rates.

Make sure you have a rate in mind when you begin your search, then see if lenders can match it. Don’t hesitate to compare products before submitting a full application.

And don’t forget, once an application is turned in, hard credit inquiry will follow.

Also, if a lender knows you’re shopping around, chances are they will try to lower their rate to get you to choose them. Remember, even when it comes to personal loans, knowledge is power.

Interested in a personal loan?

Here are the top personal loan lenders of 2017!

Lender	Rates (APR)	Loan Amount
1 Includes AutoPay discount. Important Disclosures for SoFi. 2 Important Disclosures for Citizens Bank. SoFi Disclosures Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org) Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.19% APR to 11.32% APR (with AutoPay). SoFi rate ranges are current as of July 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 4.99% APR assumes current 1-month LIBOR rate of 1.22% plus 3.95% margin minus 0.25% autopay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Citizens Bank Disclosures Personal Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2017, the one-month LIBOR rate is 1.23%. Variable interest rates range from 6.02% – 15.97% (6.02% – 15.97% APR) and will fluctuate over the term of your loan with changes in the LIBOR rate, and will vary based on applicable terms and presence of a co-applicant. Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with Citizens Bank at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, Citizens Bank checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
	7.39% - 29.99%	$1,000 - $50,000	Visit Upstart
	5.19% - 14.24%1	$5,000 - $100,000	Visit SoFi
	8.00% - 25.00%	$5,000 - $35,000	Visit Payoff
	5.99% - 16.24%2	$5,000 - $50,000	Visit Citizens
	5.99% - 35.89%	$5,000 - $50,000	Visit LendingClub
	5.25% - 12.99%	$2,000 - $50,000	Visit Earnest