Personal loan rates saw an uptick last week, with the average rate on a three-year loan for high-credit borrowers rising to 15.46%, a 0.42% increase from the previous week. Conversely, the average rate on five-year personal loans slightly decreased. Despite these fluctuations, prequalifying with lenders can still secure reasonable rates based on your creditworthiness and other factors. Rates are influenced by several elements, including your credit score, with the most favorable rates typically available to those with scores of 720 or higher. It's advisable to check your credit score and improve it if necessary before applying to get the best possible terms. Prequalification, which involves a soft credit check, can help gauge what specific rates you might qualify for without affecting your credit score.
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