Last week, rates on personal loans slipped. Qualified borrowers can still pick up a decent interest rate, providing the opportunity to finance a project, purchase or unexpected bills.

From January 17 to January 21, the average fixed rate on a three-year personal loan was 10.88% for borrowers with a credit score of 720 or higher who prequalified on Credible.com’s personal loan marketplace. The rate was 11.47% the previous week, according to Credible.com. The average rate on a five-year personal loan rose 0.54% last week to 13.48% from 12.94%.

The most qualified borrowers generally receive the best rates. In fact, well-qualified borrowers may receive a rate that’s significantly lower than average. The rate you receive depends on numerous factors, including your creditworthiness and the loans available through your chosen lender.

Related: Best Personal Loans January 2022

How to Get the Best Rates

The interest rate your receive on a personal loan is based on a number of factors. This includes your overall creditworthiness, credit score, income and debt-to-income (DTI) ratio. Two quick ways to help you receive more favorable rates include paying down existing debt to help lower your DTI and improving your credit score.

Rod Griffin, senior director of consumer education and advocacy at Experian, recommends “checking your credit report and scores three to six months before you apply for a personal loan,” as this will give you enough time to make any necessary improvements.

While qualification requirements differ across lenders, a minimum credit score of 720 will typically yield you the best terms. If your score falls below this marker, and you’re on a quest for the lowest rate possible, you can take action to improve your score. Try strategies like lowering your credit utilization ratio, removing errors from your credit report and paying your bills early or on time.

How to Calculate Your Personal Loan Payments

To see if it fits into your budget, it’s important to estimate how much you’ll pay on a monthly basis—and how much you’ll pay in interest over the life of the loan. One of the easiest ways to do this is with a personal loan calculator. You’ll need your loan rate, term and amount.

For example, let’s say you have a personal loan with a $5,000 loan amount, 10.88% fixed interest rate and a term of 36 months. The Low Cost Advisor personal loan calculator shows your monthly payment would be around $163 and you’d pay roughly $883 in interest over the life of the loan. Overall, you would owe $5,883, which includes both principal and interest.

Personal Loan Rates by Credit Score

Here are the average estimated interest rates for personal loans based on VantageScore risk tiers, according to Experian. Please note that interest rates are determined and set by lenders. The rates provided are estimations.