Table of Contents

What Is the Average Personal Loan Amount?

By

澳洲幸运5官方开奖结果体彩网:Dori Zinn

Updated September 13, 2024

Reviewed by

Andy Smith

Fact checked by

Vikki Velasquez

Man looking over personal loan documents — pixdeluxe / Getty Images

Personal loans are on the rise—not just in how many people are getting them, but in how much people are borrowing. The amount of funding offered as part of a personal loan can vary wildly depending on the borrower. Americans averaged around $11,687 in personal loan balances as of the second quarter (Q2) of 2024.

Key Takeaways

The average personal loan amount in America was $11,687 in the second quarter of 2024.
There were over 23.9 million consumers with unsecured personal loans in Q2 2024.
The average interest rate in Q2 is 11.92%.

Average Personal Loan Balance

The average balance of 澳洲幸运5官方开奖结果体彩网:unsecured personal loans in the United States was $11,687 in the second quarter of 2024, according to an August 2024 report from TransUnion. This is up from $11,548 during the same time a year prior.

Serious borrower 澳洲幸运5官方开奖结果体彩网:delinquency (i.e., loans that are more than 90 days past due) increased slightly from 2.06% in 2023 to 2.26% in 2024.

Average Personal Loan Rates

澳洲幸运5官方开奖结果体彩网:Interest rates for personal loans shift as the economy changes. Although interest rates aren’t directly set by the 澳洲幸运5官方开奖结果体彩网:Federal Reserve, 澳洲幸运5官方开奖结果体彩网:federal funds rate increases can affect the economy, which can lead to personal loan rate increases. The national average on a personal loan was 11.92% in Q2 2024, according to the Fed.

Average Personal Loan Balance by State

Per a 2023 report from Experian, almost all states experienced an average increase in personal loan debt, growing by 9.3%. Althoug꧅h this is down from the 17% growth in personal debt that Americans experienced in 2023, some states saw hig✱her rates of personal loan debt.

The District of Columbia had the biggest jump in personal loan balance, with its average rising 10.3% 澳洲幸运5官方开奖结果体彩网:year over year (YOY). Wyoming, the only state to see personal loan balance decrease, experienced a drop of 0.4% in the same time frame.

In terms of the actual amount of debt, Washington state had the highest average personal loan balance at $31,438, though this only represented a 2.7% YOY growth since 2022. Conversely, the District of Columbia had a much smaller average, at $13,507, despite its large YOY increase.

How Do People Use Personal Loans?

cnjem.commissioned 澳洲幸运5官方开奖结果体彩网:a national survey of 962 U.S. adults between Aug. 14, 2023, to Sept. 15, 2023, who had taken out a personal loan to learn how they used their loan proceeds and how they might use future personal loans. Debt consolidation was the 澳洲幸运5官方开奖结果体彩网:most c🍬ommon reason people borrowed money, followed by home improvement and other large expenditures.

What Can People Use a Personal Loan for?

You can use a personal loan for almost anything. For instance, you may need some cash to cover an emergency, such as an unexpected home repair, medical bill, or car maintenance. Some borrowers use personal loans to fund major expenses, including moving, adoption, or weddings. However, most lenders typically won’t authorize a personal loan for education e💟xpenses.

What Is a Good Rate for a Personal Loan?

Interest rates vary based on your 澳洲幸运5官方开奖结果体彩网:credit history, how much you want to borrow, your potential lender, and more. Right now, the national average interest rate for unsecured personal loans is nearly 12%. If you can find an interest rate that’s below the national average, then you know you’ve found 澳洲幸运5官方开奖结果体彩网:a good rate for a personal loan.

Can You Pay Off a Personal Loan Early?

Most lenders typically won’t penalize you for payi𝕴ng off your loan early unless you pay it off very soon after it originated. In most cases, you can pay off your loan b♏efore the final payment is due without incurring any extra charges or fees.

Does a Personal Loan Hurt Your Credit Score?

Completing a loan application can cause your 澳洲幸运5官方开奖结果体彩网:credit score to temporarily dip, as your lender will conduct a 澳洲幸运5官方开奖结果体彩网:hard inquiry to obtain your credit report. Your score will typically rebound after a couple of months. If you miss a payment or fall behind on what you owe, that could hurt your credit score as well. If you miss enough payments and default on your loan, you will have a harder time borrowing money in the future.

Where Can You Get a Personal Loan?

Personal loans are available from many types of banks, including global financial institutions and local community banks. You can also check your local credit unions, even if you aren’t a member. Compare those terms and rates with o💙nline lenders to see which one💛 would offer you the lowest interest rate, fewest fees, and repayment terms suited to your budget.

If available, see if you can get 澳洲幸运5官方开奖结果体彩网:pre-qualified for a personal loan. This won’t hurt your credit score, and it will give you an idea of how likely you are to be approved for a loan.

The Bottom Line

The number of people taking out new unsecured personal loans has been on the rise over the past several years, as has the average personal loan balance in the U.S. While this isn’t a surprise, given the wide variety🌳 of uses that personal loans have for those in need of funding, it remains to be seen if this growth will continu💫e next year.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

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