Understanding APR in Personal Loans
APR reflects the total cost of a personal loan, including interest and fees. It varies by credit score, income, and loan terms. Comparing APRs helps borrowers assess true costs.
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Latest reporting and analysis tagged with personal loans.
APR reflects the total cost of a personal loan, including interest and fees. It varies by credit score, income, and loan terms. Comparing APRs helps borrowers assess true costs.
Borrowers with high credit scores and stable incomes are securing personal loans with APRs below the national average, as lenders offer competitive rates to creditworthy applicants.
Banks, credit unions, and online lenders offer unsecured loans without collateral, including personal loans, student loans, and credit cards, with varying terms based on creditworthiness.
Consumers consider personal loans to consolidate high-interest credit card debt, with average APRs of 12.19% versus 19.64% for cards. Options include balance transfers and debt management plans.
David Kimball, chairman and CEO of Prosper, comments on personal loan advantages and drawbacks, noting they are not a one-size-fits-all solution.
Recent data reveals average personal loan interest rates at 12.19%, with balances averaging $11,724. The Federal Reserve has cut rates three times in 2025, influencing borrowing costs.
Bankrate data shows average personal loan rates at 12.19% as of Jan. 14, 2026, with LightStream offering the lowest rate at 6.24%. Rates vary by lender type and borrower credit.