The interest rate you can land on a personal loan depends heavily on your borrower profile and how the lender’s algorithm evaluates the risk of lending you money. Your credit score, income, and other factors play a role. With that said, we’re seeing some personal loans on the market with APRs (annual percentage rates) starting below 7.00%.
Each workday, Fortune examines APRs on personal loans from several major personal lenders to keep you informed. When you’re ready to apply for a personal loan, you’ll have the information you need to pick the one that works for your situation.
Keep reading to check out rates on January 23, 2026.
Personal loan rates on Friday, Jan. 23, 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
A personal loan means borrowing money from a financial institution—a bank, credit union, or online lender—and committing to pay it back over a set term, usually one to five years. Your monthly payments go in part toward principal, which is the amount you borrowed, and in part to cover the interest the lender charges you for the privilege of borrowing.
You can typically pay off a personal loan early, which can save money on interest compared to what you’d pay if you kept the loan for the full term. The catch is that some lenders charge prepayment penalties, so you’ll want to check the loan agreement to see if that’s the case.
Personal loans are usually unsecured, which means they don’t require borrowers to put up collateral. However, that means lenders have fairly stringent requirements. For the best chances of approval and a low rate, borrowers should have a credit score in the good to excellent range, which is generally considered a FICO Score of 670 to 850.
What you can use a personal loan for
Personal loan funds can be used for almost any legal purpose. A few exceptions exist—you can’t typically use a personal loan toward a home purchase down payment, for instance. Otherwise, personal loans offer substantial flexibility. Here are some common situations where a personal loan might be right for your needs.
Emergency loans
Life presents unexpected challenges now and then. The best-case scenario is having enough in an emergency fund that you keep in a high-yield savings account to cover surprises. That’s not always how things work out, though. A personal loan might bridge the gap when you face sudden expenses—whether it’s a costly car repair or an unexpected trip to the vet.
Home improvement loans
A thoughtfully planned home improvement can boost your property’s value, potentially making it a sound long-term investment. If you don’t have the cash reserves to complete the project from your own pocket, a personal loan for home improvements might fit the bill. You might also explore a home equity line of credit (HELOC) for a potentially lower rate, as you’re borrowing against the equity you’ve built up.
Debt consolidation loans
You could be weighed down by high-interest credit card balances, watching the interest accumulate month after month. Or perhaps you’re managing multiple debts spread across different accounts, each with different payment dates and amounts.
Rolling these into one personal loan means a single monthly payment, potentially less interest paid over the life of your debt, and less to stress about.
Frequently asked questions
What’s a good rate on a personal loan?
In January 2026, we think landing a personal loan with a single-digit APR is considered a big win. An offer of 7.00% APR or lower generally indicates you have excellent credit and present minimal lending risk.
It’s worth knowing that interest rate and APR aren’t exactly the same. Your APR tends to be higher than the interest rate because it encompasses the interest plus any associated fees on the loan.
Do personal loans charge origination fees?
Some lenders may charge origination fees ranging from 1% to 10%. But there are many lenders on the market that do not charge origination fees on their personal loans, so you should bear this in mind as you comparison shop for the right loan.
Are there personal loans for bad credit?
If your credit score drops to the “bad credit” zone (usually meaning below 580 FICO), approval becomes difficult. With a “fair” score (normally 580 to 669 FICO), you’re still going to face slim pickings.
Work toward at least a good credit score, usually defined as a FICO Score of 670 or higher, to boost your approval prospects and access better rates.
