Getting the lowest possible interest rate is critical because it directly affects the cost of your loan. That also explains why it’s economical to choose the shortest repayment term (and highest monthly payment) that you can realistically afford. Interest will have less time to accumulate, which means paying less overall.Personal loans often come with lower interest rates than credit cards. As of December 2025, the average personal loan rate is 12.21%, while the average credit card rate is 19.72%. Borrowers ...