Recent declines in personal loan interest rates present an opportunity for qualified borrowers to secure better financing options. As of mid-October 2024, those with credit scores of 720 or higher can find average rates of 14.73% for three-year loans and 21.19% for five-year loans, reflecting a decrease of 1.15% and 1.04% respectively from the previous week. However, the actual rate a borrower receives will depend on their creditworthiness and lender offerings. To find the best rates, potential borrowers are encouraged to utilize prequalification processes offered by various lenders, which involve soft credit checks that do not affect credit scores. While prequalification can provide a clearer picture of available options, it does not guarantee loan approval. To maximize chances of securing favorable rates, individuals should check their credit scores in advance and take steps to improve them if necessary, such as paying down debts and correcting any errors on their credit reports.
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