Personal loan interest rates rose this week for both the 36-month and 60-month loan terms. Here are the average personal loan rates offered to well-qualified applicants with a credit score of 720 or greater, as of April 10: Three-year personal loan term: 19.22% (up from 17.92% a week ago).
(up from 17.92% a week ago). Five-year personal loan term: 19.97% (up from 17.4% a week ago). Personal loan rates vary widely based on creditworthiness. Borrowers with very good or excellent credit scores will see much lower interest rates than those with fair or poor credit. Often, borrowers with bad credit will apply for a secured personal loan that uses an asset as collateral in order to achieve lower rates:
A peer-to-peer loan is usually an unsecured personal loan funded by institutional investors and obtained through an online platform. P2P lenders may work with consumers or small businesses.
Some well-known marketplaces include Prosper and Funding Circle.
Like traditional lenders, P2P lenders may consider factors such as your debt-to-income ratio and credit score for loan approval. But P2P platforms often rely on automated systems and algorithms to evaluate your creditworthiness, set loan terms and determine interest rates.
The marketplace handles all aspects of the loan, from determining eligibility to underwriting and collecting payments.
More flexible qualification requirements than other types of loans. P2P marketplaces are usually open to everyone, including borrowers with