What Is the Average Personal Loan Amount?

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Dori Zinn
Dori Zinn
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Dori Zinn is a personal finance journalist with more than a decade helping people understand money. Her work has appeared in Wirecutter, CNET, Credit Karma, Huffington Post, and more.
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Published July 06, 2023
Reviewed by Andy Smith
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Vikki Velasquez
Vikkie Velasquez
Fact checked by Vikki Velasquez
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Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area.
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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 $8,018 in new personal loan balances as of the fourth quarter (Q4) of 2022.

Key Takeaways

  • The average personal loan amount in America was $8,018 in the last quarter of 2022.
  • This balance is up by almost $1,000 from the year prior and more than $2,000 since Q4 2020.
  • There were over 22 million consumers with unsecured personal loans in Q4 2022.

Average Personal Loan Balance

The average balance of new unsecured personal loans in the United States was $8,018 in the final quarter of 2022, according to a February 2023 report from TransUnion. This is up from $7,104 during the same time a year before. The average balance was much lower in Q4 2020, at $5,739, having dropped from $6,211 in Q4 2019.

Q4 2022 Q4 2021 Q4 2020
Average Balance of Unsecured Personal Loans $8,018 $7,104 $5,739
Total Balances Owed $222 billion $167 billion $145 billion
Number of Consumers with Unsecured Personal Loans 22.5 million 19.9 million 19.3 million

Meanwhile, the average debt per borrower was $11,116 in Q4 2022—up from $9,622 in Q4 2021. Serious borrower delinquency (i.e., loans that are more than 60 days past due) rose to 4.14%—the highest it has been in more than a decade.

Average Personal Loan Rates

Interest rates for personal loans shift as the economy changes. Although interest rates aren’t directly impacted by the Federal Reserve, federal funds rate increases can affect the economy, which can lead to personal loan rate increases. The national average on a personal loan was 11.21% in Q4 2022, according to the Fed.

Average Personal Loan Balance by State

Per a 2023 report from Experian, each state experienced an increase in its average personal loan balance in 2022 compared to the year prior. Hawaii had the biggest one, with its average personal loan balance rising 20.1% year over year (YOY). The District of Columbia experienced the smallest bump, up by just 0.1% in the same time frame.

In terms of the actual amount of debt, Washington had the highest average personal loan balance at $30,648, though this only represented a 2.2% YOY growth since 2021. Conversely, Georgia had a much smaller average, at $14,838, while its increase from the previous year was much higher, at 10.2%.

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 expenses.

What Is a Good Rate for a Personal Loan?

Interest rates vary based on your 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 over 11%. If you can find an interest rate that’s below the national average, then you know you’ve found a good rate for a personal loan.

Can You Pay off a Personal Loan Early?

Most lenders typically won’t penalize you for paying off your loan early unless you pay it off very soon after it originated. In most cases, you can pay off your loan before 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 credit score to take a temporary dip, as your lender will conduct a 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 online 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 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 three 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 continue 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.

  1. TransUnion Newsroom. “Amidst Stubbornly High Inflation, Consumers Continue to Turn to Credit Cards, Home Equity to Maintain Stability.”

  2. Board of Governors of the Federal Reserve System. “Consumer Credit—G.19.”

  3. Experian. “The Average Personal Loan Balance Rose 7% in 2022.”

  4. myFICO. “Credit Checks: What Are Credit Inquiries and How Do They Affect Your FICO® Score?”

  5. myFICO. “What Is Payment History?”

  6. Consumer Financial Protection Bureau. “What’s a Credit Inquiry?”

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