While boring, there’s a bountiful list of reasons to be the responsible friend in the group and nurture your credit score. Among them: Prime credit score borrowers can continue to get ahead as banks cut prime interest rates on Thursday, opening up more financial options.
It’s Like a Reward
National banks JP Morgan Chase, Wells Fargo, Citigroup and Bank of America dropped their prime lending rates to 7.25%, down from 7.5%, following the Federal Reserve board’s interest rate cut.
Bank of America announced the change in a press release: “The prime rate is set by Bank of America based on various factors, including the bank’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans,” the bank said.
The 7.25% is the lowest prime lending rate for borrowers in nearly three years, since it sat at 7% in November 2022.
The move from the national banks came as the Federal Reserve lowered its interest rates in response to economic instability, inflation, tariffs and an unsatisfactorily low number of new jobs added across sectors.
In the Bureau of Labor Statistics’ August Employment Situation Summary, only 22,000 new jobs were added in nonfarm sectors, and the unemployment rate rose from 4.2% to 4.3%.
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Your Gain
Prime borrowers, or those with credit scores above 660, are eligible for the lowered interest rates. If you’ve been in need of financial assistance lately, now’s the time to make your move. Whether it’s funds toward debt consolidation, medical expenses, credit card debt, tuition payments, moving costs or wedding expenses, a personal loan can give you a temporary boost to get you back on your feet. Check out Forbes Advisor’s list of the best personal loans.
| COMPANY | FORBES ADVISOR RATING | MINIMUM CREDIT SCORE | CURRENT APR RANGE | LOAN AMOUNTS | LEARN MORE |
|---|---|---|---|---|---|
   | 650 | 8.99% to 35.49% with all discounts | $5,000 to $100,000 | Via Credible.com’s Website | |
| | 620 | 7.99% to 35.99% | $1,000 to $50,000 | Via Credible.com’s Website | |
 | 660 | 6.49% to 25.79% | $5,000 to $100,000 | Via Credible.com’s Website | |
 | 600 | 7.90% to 35.99% | $1,000 to $60,000 | Via Credible.com’s Website | |
| | Not disclosed | 8.99% to 17.99% | $600 to $50,000 | Via MoneyLion’s Website | |
| | 640 | 7.95% to 29.99% | $5,000 to $40,000 | Compare rates from participating lenders via Forbes Advisor | |
| | 720 | 7.99% to 24.99% | $1,000 to $50,000 for existing U.S. Bank customers and up to $25,000 for new customers | Via MoneyLion’s Website | |
| | 300 | 6.60% to 35.99% | $1,000 to $75,000 | Read Our Review | |
| | 600 | 7.99% to 35.99% | $2,000 to $25,000 | Via MoneyLion’s Website |
Especially if you’re planning a large purchase, now’s the time to get in on lower interest rates. Banks like SoFi offer personal loans from $5,000 to $100,000. While the bank requires a minimum credit score of 650 to qualify, prime borrowers are already in the clear. Perks include no origination or late fees as well as rate discounts for repeat borrowers.
For lower interest rates, LightStream has a rate guarantee to beat out competitors, no origination fees, as well as rate discounts for setting up autopay.
When shopping around for a personal loan, be sure to compare interest rates, payment terms, perks and fees to find the right match.
Bottom Line
It pays to be responsible. Prime borrowers can take advantage of lower interest rates to take out a personal loan toward tackling debt or planning for a large purchase.
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