Your personal loan interest rate will depend heavily on your profile as a borrower—your credit score, income, and financial history all play a role, among other considerations. There are some personal loan rates on the market below 7.00% as of this writing.
Every workday, Fortune keeps tabs on APR offerings from some of the leading personal lenders. This way, you’ll have the latest rate information immediately on hand if you need to shop for a personal loan, and you can be sure to get the loan that works best for you. Keep reading for what we’re seeing on January 13, 2026.
Personal loan rates on Tuesday, Jan. 13, 2026
- LightStream, with APRs as low as 6.24%
- Wells Fargo, with APRs as low as 6.74%
- American Express, with APRs as low as 6.99%
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How personal loans work
A personal loan is relatively straightforward. You borrow money from a financial institution—whether that’s a bank, credit union, or onlinelender—and agree to pay it back over a set term, oftentimes ranging from one to five years. Your monthly payments will go in part toward the amount you borrowed, called principal, and also toward covering interest charges.
You can pay off a personal loan ahead of schedule, and doing so typically means you’ll pay less interest overall. However, read the fine print carefully, some lenders penalize early payoffs. You’ll want to know upfront if that applies to your loan.
Most personal loans are unsecured, which is another way of saying they don’t require collateral. Because of this, lenders tend to have fairly credit standards. For the best chances of getting approved and being offered a low rate, you’ll want a credit score in the good to excellent range, which generally means a FICO Score of 670 to 850.
What you can use a personal loan for
You can use personal loan funds for almost anything legal. There are some limits—you typically can’t use a personal loan for a down payment on a house, for example. But beyond those exceptions, personal loans give you real financial flexibility. Here are some common situations where borrowing through a personal loan can make sense.
Emergency loans
Life has a way of throwing curveballs. The ideal way to handle unexpected bills is having an emergency fund stashed in a high-yield savings account for these moments. But reality doesn’t always cooperate. A personal loan can bridge the gap when unexpected costs pop up, whether it’s a major car repair, an unexpected vet bill, or something else.
Home improvement loans
A smart home improvement project can increase your home’s value, potentially making it a savvy long-term investment. If you don’t have the cash on hand to fully fund the project from savings, a personal loan could be the answer.
Another option worth considering is a home equity line of credit (HELOC), which might offer a lower rate since it’s backed by your home’s equity.
Debt consolidation loans
High-interest credit card debt can feel suffocating, especially if you’re paying the minimum each month and seeing the vast majority of your payments go toward interest charges. Or, perhaps you’re in a situation where you’re juggling multiple debts across different accounts, each with its own due date and payment amount.
Consolidating these into a single personal loan means one payment, potentially less in interest over the life of the debt, and less mental energy tracking multiple obligations.
Frequently asked questions
What’s a good rate on a personal loan?
Looking at rates in January 2026, landing a personal loan with a rate in the single digits is a win. If you’re offered a 7.00% APR or better, for example, you likely have excellent credit and represent minimal risk to lenders.
Do personal loans charge origination fees?
Origination fees do exist, and they can vary considerably—often ranging from 1% to 10% of the loan amount. That said, plenty of lenders offer personal loans with zero origination fees, so it’s worth keeping an eye on as you shop around.
Are there personal loans for bad credit?
Finding a personal loan becomes significantly harder if your credit score is in the “bad” range (typically below 580 on the FICO scale). Even with a “fair” score (a FICO of 580 to 669), your options will be limited. Your best bet is to aim for at least a “good” score, typically meaning a FICO Score of 670 or higher, to maximize your approval odds and access to low rates.
