The interest rate on your personal loan ultimately depends on your profile as a borrower—your credit score, track record of repaying your debts, and your income all factor in. We’re seeing some competitive personal loans with APRs (annual percentage rates) starting below 7.00%.
Fortune reviews APR information from several leading personal lenders each business day. We do this so you have up-to-date rate data as you prepare to apply for a personal loan that works for your situation. Read on to see where personal loan rates are at on January 15, 2026.
Personal loan rates on Thursday, Jan. 15, 2026
- LightStream, with APRs as low as 6.49%
- 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
When you take out a personal loan, you’re getting funds from a financial institution, which might be a bank, credit union, or online lender. You agree to repay the money over a fixed term, usually between one and five years, with regular monthly payments. These payments go toward the principal (what you originally borrowed) and interest (the cost of borrowing from the lender).
Paying off your personal loan ahead of schedule is often possible, and it usually means paying less interest overall. Just be aware that some lenders impose early repayment penalties, so it’s crucial to understand all the terms before you sign.
Most personal loans are unsecured, meaning no collateral is required. As a result, lenders tend to have fairly strict credit standards. For your best chance at approval and favorable rates, you’ll want a credit score in the good to excellent range—typically a FICO Score of 670 to 850.
What you can use a personal loan for
You can direct personal loan funds toward nearly any legal purpose. There are some limitations—you generally can’t use a personal loan for a house down payment, for example. Beyond those restrictions, personal loans are remarkably versatile. Here are some common situations where taking out a personal loan might make good financial sense.
Emergency loans
Life doesn’t always go according to plan, and unexpected expenses crop up. Ideally, you’d have an emergency fund earning interest in a high-yield savings account. But, reality and the ideal don’t always line up, and maybe your emergency fund isn’t enough to cover the cost of the expense. A personal loan can help bridge the gap in situations such as this, whether you’re dealing with an urgent car repair, an emergency vet bill, or something else.
Home improvement loans
The right home improvement project can enhance your home’s value and represent a smart investment over time. If you lack the savings to fully fund the project on your own, a personal loan for home improvements could be the solution. Alternatively, consider a home equity line of credit (HELOC), which might provide a lower rate since you’re borrowing against the equity in your home.
Debt consolidation loans
You might be struggling with a credit card balance and feeling buried under monthly interest charges. Or maybe you’re juggling multiple debts with different due dates and payment amounts, which makes managing them exhausting.
Converting these into a single personal loan with one monthly payment can streamline your finances and might even reduce the total interest you’ll pay.
Frequently asked questions
What’s a good rate on a personal loan?
Looking at January 2026 rates, securing a personal loan with a rate in the single digits is a win. If you’re quoted a 7.00% APR or less, for example, it’s a sign you likely have excellent credit and are viewed as a very low-risk borrower.
It’s important to note interest rate and APR are not identical. Your APR will generally be higher than your interest rate since it factors in interest charges plus any fees related to your loan as well.
Do personal loans charge origination fees?
Origination fees do exist, and generally fall within a range of 1% to 10% of your loan amount. But, there are numerous lenders that offer personal loans with no origination fee, so pay attention to this when shopping around.
Are there personal loans for bad credit?
Getting approved for a personal loan becomes much tougher if your credit score is in the “bad credit” range (which typically means below 580 FICO). Even with a “fair” score (usually 580 to 669 FICO), your choices will be quite limited.
Work toward at least a “good” credit score, usually a FICO Score of 670 or higher, to maximize your approval chances and qualify for competitive rates.
