Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were higher for 3- and 5-year loans when compared to fixed-rate loans for the seven days before. Personal loans have become a popular way to consolidate and pay off credit card debt and other loans. They can also be used to cover unexpected expenses like medical bills, take care of a major purchase or fund home improvement projects.
As shown in the chart above, a good credit score can mean a lower interest rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms. Many factors influence the interest rate a lender might offer you on a personal loan. But you can take some steps to boost your chances of getting a lower interest rate. Here are some tactics to try. Generally, people with higher credit scores qualify for lower interest rates.