Current personal loan statistics in 2026

Core Insights - The article discusses the impact of federal rate changes and inflation on personal loan interest rates, emphasizing the importance for consumers to understand these factors when borrowing [1][4]. Group 1: Interest Rate Dynamics - Personal loan interest rates are influenced by the Federal Reserve's decisions regarding the federal funds rate, with increases leading to higher borrowing costs [4]. - Historical trends show that major economic events, such as recessions, typically result in the Fed lowering rates to stimulate recovery, which in turn affects personal loan rates [5][6]. Group 2: Current Statistics - The average personal loan interest rate is currently 12.21%, with rates from lenders ranging between 6.24% and 35.99% [8]. - As of September 2025, the average personal loan debt per borrower in the U.S. was $11,724, and inflation is reported at 3% month over month [8]. - The Federal Reserve has reduced the federal funds rate three times in 2025, with the current target rate set between 3.5% and 3.75% [8]. Group 3: Credit Score Influence - Credit scores play a significant role in determining personal loan interest rates, with higher scores generally leading to better rates for borrowers [7].