The interest rate you’ll pay on a personal loan depends on your borrower profile, such as your credit score, income, and overall financial standing, and how each lender’s algorithm evaluates you. That said, we’ve identified some personal loans with APRs (annual percentage rates) that start under 7.00% as of this writing.
Fortune monitors APR ranges from some of the leading personal lenders each business day. This helps ensure you have fresh, reliable information when you’re shopping for a personal loan that will match your needs.
Personal loan rates on Wednesday, Jan. 21, 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
Taking out a personal loan is a way of borrowing money from a financial institution, which may be a bank, credit union, or online lender. You commit to repaying it over a specific term, typically one to five years, with consistent monthly payments. Each payment will be split between two things: the principal, meaning the original amount you borrowed, and the interest, which is what the lender charges for the privilege of borrowing.
Paying off your personal loan early is usually an option, and it often saves you money in the long run since you should end up paying less interest overall. But, some lenders charge prepayment penalties, so you’ll want to make sure before you take a loan out that the lender you’re going with does not.
Personal loans are usually unsecured, meaning you don’t need to put up collateral. The flip side is that lenders have pretty high credit requirements for these products. If you want the best shot at approval and the lowest rates, your credit score should be in the good to excellent range—generally defined as a FICO Score between 670 and 850.
What you can use a personal loan for
Personal loan proceeds can go toward almost any legal purpose. There are exceptions—most lenders won’t let you use a personal loan for a house down payment, for instance. Beyond those restrictions, personal loans offer considerable flexibility to help you reach your financial goals. Consider these common scenarios where a personal loan might be the right move.
Emergency loans
Unexpected expenses happen to everyone. While it’s ideal to have an emergency fund stored in a high-yield savings account, your emergency fund might not always be enough to cover the entirety of the expense. When sudden costs arise, like an urgent home repair or an unexpected vet bill for care your pet needs, a personal loan might help bridge the financial gap.
Home improvement loans
A well-planned home renovation can add real value to your property, making it a solid long-term financial decision. If you don’t have enough savings to cover the project entirely with cash, the right personal loan could be the solution. You could also look into a home equity line of credit (HELOC), which might offer a lower rate as your home serves as collateral.
Debt consolidation loans
Maybe you’re carrying credit card debt with an interest rate so high it feels punishing, as you watch your monthly payment get largely eaten up by interest charges. Or maybe you’re managing several different debts with various payment schedules and amounts.
Rolling everything into one personal loan with a single monthly payment simplifies your finances—and can potentially reduce the interest you pay over time as you work toward becoming debt free.
Frequently asked questions
What’s a good rate on a personal loan?
Based on what we’re seeing in January 2026, landing a personal loan with a single-digit rate is solid. If you’re offered a 7.00% APR or lower, that demonstrates that you have strong credit and look like a pretty safe bet to the lender.
It’s useful to note here that interest rate and APR are slightly different. Your APR will usually be higher than the interest rate because it includes both the interest and any fees associated with borrowing.
Do personal loans charge origination fees?
Some lenders charge origination fees, and they can vary pretty dramatically, generally falling anywhere from 1% to 10% of your loan. But there are many lenders out there offering personal loans with no origination fees at all, so make sure to watch for that when comparison shopping.
Are there personal loans for bad credit?
You’ll face challenges getting approved for a personal loan if your credit score has fallen into “bad credit” territory (normally meaning below 580 on the FICO scale). With a “fair” score (typically 580 to 669 FICO), your options are still very slim.
Work toward at least a good score, generally meaning a FICO of 670 or higher, to improve your odds of approval and get access to better rates.
