personal loan rates dipped slightly from a week prior for those with excellent credit the average interest rates on personal loans with 60month terms hit 1412 and for 36month terms 1316 according to the latest data from bankrate for the week ending march 21st overall averages for personal loans also fell for personal loans with 60month terms average interest rates were 2345 while personal loans with 36month terms rates were 2249 you can see the lowest rates you can qualify for here there are a number of reasons a personal loan may be right and wrong for you some of the pros are that personal loans can be used for just about anything from home improvement projects to debt consolidation they also typically get funded faster than other loans sometimes in as little as about a day and unlike home equity loans or helocs personal loans don’t always need to be secured so you don’t need to worry about having collateral to take out a personal loan  there’s an important caveat though personal loans are known to carry higher interest rates than many other loans in part because they are unsecured lenders want to know they’ll be covered in the event the borrower can’t pay them back it’s also important to know that failing to follow a personal loan repayment schedule can dock your credit score and while it may be tempting to use a personal loan for discretionary expenses experts strongly advise against it the promise of quick access to cash is certainly an upside to taking out a personal loan but they come with costs most loans have an origination fee which can typically range from 1 to 8 of the amount of the loan the origination fee is generally deducted off the top of the loan so you may actually need to borrow more money that you think depending on how much you need and what portion will be used to pay the fees when your loan funds personal loans are generally granted to borrowers needing anywhere from 1000 to 100000 they are disbursed from a bank credit union or online lender repayment terms for personal loans usually last between one and seven years and are usually repaid monthly along with interest how to get a personal loan having a solid credit score before you apply will help you lock in better interest rates experts often recommend prequalifying for personal loans so that you can get a sneak peek at what rates you may pay looking into prequalified loans doesn’t affect your credit score and can be helpful in terms of identifying varying apr rates and repayment terms this guide will help you understand the necessary documents and information you need to get a personal loan