📊 Article 29 · Personal Loan Rates · PAA

What Is a Good Interest Rate on a Personal Loan in 2026?

A "good" personal loan interest rate is not an absolute number — it is a rate that is competitive for your specific credit tier in the current market. The national average is 11.65% APR (Federal Reserve G.19, Q1 2026), but that average spans borrowers from 580 FICO to 800+ FICO who receive rates from 7% to 36%. This article defines what counts as a good rate at every credit score level in 2026 with primary-source benchmarks.

📅 Updated: April 2026 | 📂 Category: Personal Loan Rates | ⏱️ ~7 min

11.65%

National Avg APR · Federal Reserve G.19 · Q1 2026 · Primary Benchmark

6.99%

Best Available Rate — LightStream — 720+ FICO — Zero Fees — April 2026

18%

Federal CU APR Cap — Hard Ceiling for All 580–720 FICO Borrowers

36%

Maximum Legitimate APR — State-Regulated Ceiling — Below-580 Borrowers

⚡ Quick Answer

A good personal loan rate in 2026 is any APR below the national average of 11.65% (Federal Reserve G.19, Q1 2026). By credit tier: 760+: below 10% is excellent; below 12% is good. 720–759: below 13% is good. 680–719: below 17% is good. 640–679: below 20% is good. 600–639: below 26% is good for this tier. Always compare APRs — not interest rates — for the same loan amount and term. For rates by tier: Personal Loan Rates by Credit Score: Full Chart 2026 (Article 22).

Section 01

Good Rate Benchmarks by Credit Score Tier

The following bands define what constitutes excellent, good, above-average, high, and unacceptable APRs for each credit score tier in 2026. These benchmarks are derived from Federal Reserve G.19 data, Experian's Q1 2026 lender survey, and Bankrate's weekly rate monitor.

Exceptional Credit

6.99%–10%

Excellent rate — at or near the market floor. LightStream (6.99%), Discover (7.99%), SoFi (8.99%) available. Zero origination fees. Any offer in this range from a reputable lender is outstanding. Rates above 11% for a 760+ FICO borrower warrant shopping more lenders.

760–850 FICO
✅ Excellent

Very Good Credit

10%–14%

Good to competitive rate. Below the national 11.65% average at the low end. Zero-fee lenders (SoFi, Marcus) accessible at this tier. Any APR below 12% for 720–759 FICO is genuinely excellent. Above 16% suggests shopping more lenders or considering a credit union.

720–759 FICO
✅ Good

Good Credit

14%–20%

Near-average to slightly above. The national 11.65% average borrower sits in this tier. Credit unions (18% cap) often beat online lenders here. Below 17% is a good rate for 680–719 FICO. Above 20% is worth shopping — a federal CU or SoFi should offer better.

680–719 FICO
⚠️ Average

Fair Credit

20%–28%

Above-average — expected for this tier but improvable. A federal credit union at 15%–18% is a significantly better option for 640–679 FICO borrowers. If receiving 26%+ from an online lender, immediately compare to a federal CU. Below 22% is a good rate for this tier.

640–679 FICO
⚠️ High

Below-Average Credit

26%–36%

High cost — economically challenging. At 30%+ APR, a $10,000 loan over 3 years costs $4,400+ in interest. Good for this tier = below 28% from a legitimate lender. Federal CUs (18% cap) remain the best option for eligible borrowers. Above 36% APR signals a predatory or subprime lender.

580–639 FICO
❌ Very High

💡 The Tier-Relative Definition of "Good"

A 16% APR is an excellent rate for a 650 FICO borrower (who might otherwise pay 26%) but would be a poor rate for a 760 FICO borrower (who should receive 7%–10%). "Good" always means good relative to what your credit profile should command in the current market. Use the tier benchmarks above to assess your specific offer, not the national average alone. For the full tier rate chart: Personal Loan Rates by Credit Score: Full Chart 2026 (Article 22).

Section 02

The National Average Context: 11.65% APR

The Federal Reserve G.19 Consumer Credit Statistical Release reports the national average personal loan APR at 11.65% for Q1 2026 — the authoritative primary benchmark for U.S. consumer lending rates. This average is calculated across all lender types, all credit tiers, and all loan amounts using the actuarial APR methodology required by the Truth in Lending Act.

Personal Loan APR Rating Spectrum — 2026 Market Benchmarks

Source: Federal Reserve G.19 Q1 2026 (national avg 11.65%); Experian 2026 tier survey; Bankrate April 2026 lender monitor. Good/average/high thresholds shown by tier.

The 11.65% national average is useful as a single reference point but has important limitations as a benchmark for individual borrowers. It reflects a volume-weighted average across everyone from thin-credit subprime borrowers (26%+) to excellent-credit borrowers with zero-fee lenders (7%). A 680 FICO borrower receiving 18% APR is paying above the national average but is receiving a competitive rate for their tier. For context on whether your rate is good for your tier, the tier-specific ranges in Section 1 are more useful than the national average alone.

✅ Using 11.65% as Your Quick Benchmark

The simplest benchmark: if your prequalified APR is below 11.65%, you are receiving a below-average rate — you're doing well regardless of your credit tier. If it's above 11.65%, you're paying above average — check your tier benchmark to assess whether this is expected for your credit score or whether shopping more lenders can improve it. For the national average in historical context, see: Personal Loan Rate History: 10-Year Federal Reserve Data (Article 30).

Section 03

Good Rate vs. Average Rate vs. Bad Rate: The Full Spectrum

The table below maps APR to a qualitative rating for each credit tier, providing a clear verdict for any offer you receive.

Personal Loan APR Rating by Credit Tier — 2026 Market Benchmarks

FICO Range	Excellent Rate	Good Rate	High Rate	Avoid
760+ Exceptional	Below 9%	9%–12%	12%–18%	Above 18%
720–759 Very Good	Below 11%	11%–14%	14%–20%	Above 22%
680–719 Good	Below 14%	14%–18%	18%–25%	Above 27%
640–679 Fair	Below 18%	18%–22%	22%–30%	Above 32%
600–639 Below Avg	Below 22%	22%–28%	28%–34%	Above 36%
Below 600 Poor	Below 26%	26%–32%	32%–36%	Above 36%

⚠️ The 36% APR Hard Ceiling: When to Walk Away

Legitimate personal lenders operating under state lending laws in most states are capped at 36% APR — the threshold endorsed by the CFPB, the National Consumer Law Center, and most state consumer protection frameworks as the maximum for affordable consumer credit. Offers above 36% APR from any lender for any credit tier are a signal of subprime or predatory lending practices. If you receive an offer above 36% APR, do not accept it — alternatives include federal credit union membership (18% cap), secured personal loans, credit-builder products, or delaying the loan while improving your credit score.

Section 04

How to Determine If Your Offered Rate Is Competitive

Three steps to assess whether your offered APR is genuinely competitive for your profile:

Step 1: Identify your FICO tier. Pull your FICO score free via your credit card issuer or myFICO.com. Use the tier table in Section 3 to find the "good rate" threshold for your range.
Step 2: Check the APR, not the interest rate. The lender's TILA disclosure box will show the APR — this is the figure to compare, as it incorporates origination fees. An offer advertising 9% interest with a 5% origination fee has an ~14% APR. For the full APR explanation: Personal Loan Interest Rate vs APR: What's the Difference? (Article 25).
Step 3: Compare at 3–5 lenders via soft pull. Your offered rate is only competitive if you've compared it to other lenders' pre-qualified offers. LendingTree data shows the average spread between best and worst offer for the same borrower is 5.2 percentage points. Soft-pull prequalification is free, takes 30 minutes, and has zero credit impact. For the rate shopping guide: Rate Shopping Personal Loans: Does It Hurt Your Credit? (Article 26).

Quick Assessment: Is Your Offered APR Good? — 2026 Market

Your FICO	Offered APR	Assessment	Action
760+	Below 10%	Excellent	Accept if terms are otherwise acceptable
760+	12%–18%	Above average for tier	Shop LightStream, Discover — you should do better
720–759	10%–13%	Good	Compare SoFi and Marcus; below 11% is excellent
680–719	14%–17%	Good for tier	Compare federal CU — may offer 12%–16%
640–679	Below 18%	Excellent for tier	Likely from a federal CU — accept
640–679	26%+	High — shop more	Federal CU can offer 12%–18%; $1,500–$3,500 saving
600–639	Below 22%	Excellent for tier	Accept — likely CU rate at or near cap
600–639	32%+	High — shop CU	Federal CU membership + application is worth the effort

Section 05

What Makes a Rate "Good" Beyond the Number

APR is the primary metric but several secondary factors determine whether a rate offer is genuinely good for your situation:

Origination fees vs. zero fees. A 10% APR from a zero-fee lender is better than a 9.5% interest rate with a 4% origination fee — the latter's APR is ~13%. Always compare APRs, never raw interest rates. The five major zero-fee online lenders (LightStream, SoFi, Marcus, Discover, Achieve) offer APR = interest rate. For the origination fee deep-dive: Personal Loan Origination Fee: How to Avoid or Reduce It (Article 38).
Fixed vs. variable rate. Nearly all personal loan rates are fixed — the APR does not change over the loan term. Variable-rate personal loans exist but are uncommon and carry the risk of payment increases if market rates rise. Always confirm the rate is fixed before accepting.
Prepayment penalty. A 10% APR loan with a prepayment penalty may cost more than an 11% APR loan without one if you pay off early. For the full rate forecast and whether refinancing may be worthwhile: Personal Loan Rate Forecast 2026–2027: What Experts Say (Article 36).
Autopay discount applicability. Most lenders offer 0.25%–0.50% off for autopay enrollment. Verify whether the quoted APR includes or excludes the autopay discount — some lenders quote the pre-discount rate, others quote post-discount. For the autopay savings detail: Autopay Discount on Personal Loans: How Much Can You Save? (Article 35).