Personal loan rates are on the rise, but borrowers with good credit can still find competitive rates. As of early April, the average rate for a three-year loan for those with credit scores above 720 was 15.52%, while five-year loans jumped to 21.04%. Prequalification processes offered by lenders can provide a more accurate rate based on individual creditworthiness without impacting credit scores. Actual loan approval requires a formal application and a hard credit check. Experts advise checking credit reports months before applying to improve chances of securing the best rates. A strong credit score, a lower debt-to-income ratio, and paying down existing debts can lead to more favorable loan terms.
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