Money

Personal Loan Statistics

By Becca Bennett

Data & Guides Money Personal Loan Statistics

Personal loans can be used to cover a variety of expenses, offering a useful financial tool when used responsibly. The latest TransUnion data from the fourth quarter of 2025 shows that 26.4 million Americans owe a total of $276 billion in unsecured personal loans. [1] “TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion” https://newsroom.transunion.com/q4-2025-ciir/

But what exactly do people use personal loans for, and do they really make our financial situations better? A survey on behalf of Self asked 2,268 adults about their use of personal loans to find out how we use them. This article also delves into personal loan statistics across the U.S.

Key statistics

• In the U.S., 26.4 million people currently have an unsecured personal loan, owing a total of $276 billion to lenders as of Q4 2025.
• The number of consumers with personal loans has increased by 7.8% since 2024, and total unsecured personal loan balances have grown by 9.9%.
• Washington has the highest average personal loan balance, at $28,715, while Hawaii has the lowest at $15,808.

Key survey findings

• The average amount people borrowed with their most recent personal loan is $318.
• The highest proportion of personal loan users (36.9%) say that using a loan made their financial situation better.
• Around one-third (34.7%) of personal loan users say they have missed at least one payment on a loan.
• Getting into debt (89.2%), high interest rates (88.5%), and credit score impacts (80.1%) are the biggest concerns about taking out a personal loan.

What is a personal loan?

A personal loan is money you can borrow from a bank, online lender, or credit union, and use to pay for a variety of expenses. Personal loans are a type of installment credit whereby the borrower receives the loan as a lump sum and repays the funds in regular installments over time.

You can use a personal loan for a wide range of expenses, for example, consolidating debt, home improvement projects, emergency expenses, or large purchases.

Total personal loan balances in the U.S.

Unsecured personal loan balances have also increased compared to Q4 of 2024, rising by 9.9% from a total of $251 billion to $276 billion in Q4 2025. In the fourth quarter of 2022, the total unsecured personal loan balance in the U.S. was $222 billion, indicating a 24.3% increase between 2022 and 2025.

Sources [1] “TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion” https://newsroom.transunion.com/q4-2025-ciir/

How many people use personal loans?

Data from TransUnion shows that the number of consumers with unsecured personal loans in Q4 2025 was 26.4 million. This figure has grown by 7.8% from 24.5 million in Q4 2024, and by 17.3% compared to Q4 2022.

Source [1] “TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion” https://newsroom.transunion.com/q4-2025-ciir/

According to a survey on behalf of Self, 47.6% of survey respondents have taken out a personal loan at some point in their lives. Of those who have used loans, 28.8% say they have used personal loans a few times in the past 10 years, while 24.2% say they use personal loans multiple times a year.

How often people use personal loans
How often people borrow money using personal loans	% of respondents
I’ve only used a personal loan once	23.0%
A few times in the last 10 years	28.8%
Once a year	24.1%
Multiple times a year	24.2%

Personal loan users by demographic

The rate of personal loan usage among survey respondents was fairly even across demographics, but men are slightly more likely than women to have taken out this kind of loan at least once (49.4% vs 46%)

People aged 79 or over report the highest rate of personal loan usage, with 52.6% of people in this group reporting having used one at least once. People aged 28-43 use personal loans the least; 43.4% of respondents in this age range say they have ever used a personal loan.

Respondents borrowed an average of $318 with their most recent personal loan

Of those surveyed, the most common amount people had borrowed with their most recent personal loan was $1-$50, with 20% of personal loan users saying they borrowed this much. This was followed by $301-$499 (19.6%), and $51-$100 (18.8%). Across all respondents, the average amount borrowed with their most recent loan was $318.

Credit reporting data does not include cash advance loans or payday loans, although in our survey consumers may have considered these to be personal loans.

This data may suggest that people in the survey are using smaller, short-term types of personal loans, like payday loans or payday cash advances, rather than longer-term installment loans.

How much people borrowed with their most recent personal loan
Amount borrowed with most recent personal loan	Percentage of respondents
$1-$50	20.0%
$51-$100	18.8%
$101-$200	17.8%
$201-$300	16.3%
$301-$499	19.6%
$500-$750	1.9%
$751-$1,000	1.7%
$1,001-$2,500	1.3%
$2,501-$5,000	0.4%
$5,001-$7,500	0.4%
$7,501-$10,000	0.4%
More than $10,000	1.5%

Why do people use personal loans?

Unlike auto loans and mortgages, which lend money for specific purchases, a personal loan can be used to pay for more or less any expense. It could be for a new kitchen, a wedding, an unexpected expense like a funeral, or consolidating existing debts into one repayment.

85.7% have used a personal loan to pay regular bills

We asked personal loan users what expenses they had taken out personal loans for in the past 10 years. Respondents could select all options that applied to them.

The most common reason for taking out a personal loan is paying regular bills like rent and utilities (85.7%), followed by living expenses like groceries and gas (85%), and a new car is the third most common reason (80.5%).

Reasons people have taken out a personal loan in the past 10 years
Reason for personal loan	Percentage of respondents
To pay regular bills eg. mortgage, rent, utilities	85.7%
Living expenses, eg. groceries, gas	85.0%
New car	80.5%
Medical bills	72.2%
Car repairs	53.6%
Vacation	2.2%
Unexpected or emergency cost	2.1%
Wedding	2.0%
Business expenses	1.9%
Home improvement	1.7%
New baby	1.3%
Making a large purchase	0.9%
Consolidating debt	0.6%
Moving house	0.5%
Funeral	0.3%
Divorce expenses	0.1%
Other	0.2%

Data note: Respondents were able to select more than one answer.

The most common reasons selected here reflect borrowing over the past 10 years, while the low-dollar borrowing in the section above reflects respondents’ most recent personal loans. This accounts for the difference in responses here compared to the borrowing amounts in the previous section.

The impact of using personal loans

Borrowing money through personal loans can impact people in different ways, depending on their current financial situation and the reason for borrowing.

34.6% of personal loan users surveyed say that their experience of using them was generally positive, while 29.6% said their experience was negative overall. The highest proportion of borrowers (35.7%) said that their experience with personal loans was generally neutral.

Negative impacts of personal loans

Though many people described their experience of personal loans as generally positive, most respondents said they had experienced some negative impacts as a result of using one.

More than nine in ten (92.4%) of respondents said they had experienced depression in relation to their use of a personal loan, while 89.8% had felt stressed, 85.5% had lost sleep, and 79% had suffered anxiety.

Another study on behalf of Self found that 29.7% of people didn’t talk about their debts because of shame, and 19.6% kept quiet to avoid burdening others.

36.9% of personal loan users say it improved their situation

Of those who have used a personal loan, 36.9% said that it made their financial situation better, while 30.1% said it made it worse, and 33.1% said it didn’t change anything.

How personal loans impacted people’s financial situations
How did a personal loan change your financial situation	Percentage of respondents
Made it better	36.9%
Made it worse	30.1%
Didn’t change it	33.1%

In addition to this, half (50.8%) of people who have used a loan in the past said they would be happy to use one again.

Average personal loan balance by state

When breaking down the average personal loan balance by state from Experian, Washington has the highest average balance as of September 2025 at $28,715, down 0.2% compared to September 2024. Hawaii has the lowest average personal loan balance at $15,808 (an increase of 3.3% YoY), followed by Illinois at $15,874 (up 0.8% YoY).

Six states have seen an increase of over 5% in average personal loan balances from 2024 to 2025, including Connecticut (8.5%), Virginia (6.8%), and Maryland (6.6%).

Sources [2] Experian, “Average Personal Loan Balance Grows 1.7% in 2025” https://www.experian.com/blogs/ask-experian/research/personal-loan-study/

Data from September of each year

Missing payments on personal loans

Around one-third (34.7%) of borrowers surveyed say they have missed at least one payment on a personal loan, and 54.2% say they have paid a late fee on a loan.

According to TransUnion, the borrower-level 60+ DPD delinquency rate on consumer loans is 3.99% as of Q4 2025. This is up compared to 3.57% in Q4 2024, but down compared to 4.14% in Q4 2022. [1] “TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion” https://newsroom.transunion.com/q4-2025-ciir/

Why do people not use personal loans?

Of the respondents who said they had never used a personal loan, the majority (51.2%) said they would consider borrowing through this method if they needed money.

Although 91.6% said they had never needed to take out a loan, 89.2% said that high interest rates would put them off using one, while 88% said they were worried about getting into debt with a loan.

Reasons people have not used personal loans
Reasons people haven’t used personal loans	Percentage of respondents
I’ve never needed one	91.6%
High interest rates	89.2%
Worried about getting into debt	88.0%
Feeling stigma or shame about taking out a loan	74.3%
I have borrowed money from other sources	1.2%
I have applied but have been rejected	0.6%
Family or friends have had bad experiences with loans	0.2%
Other	0.1%

Data note: Respondents were able to select more than one answer.

Concerns about using personal loans

Any type of borrowing comes with certain risks, including the potential to get into debt and the impact on your credit score.

Among all survey respondents (including those who had and hadn’t used personal loans), the main concerns they had around personal loan borrowing were getting into debt (89.2%), high interest rates (88.5%), and the impact on their credit score (80.1%).

Concerns people have about taking out personal loans
Concerns about using personal loans	Percentage of respondents
Getting into debt	89.2%
High interest rates	88.5%
The impact on your credit score	80.1%
Fees and penalties	71.6%
Getting approved for the loan	54.3%
What other people will think	0.4%

Data note: Respondents could select more than one answer.

Alongside this, 28.4% of respondents said that high interest rates would impact their decision to take out a personal loan, but 25% said it would not impact their decision.

Frequently asked questions about personal loans

How do you get approved for a personal loan?

Approval for personal loans depends on a number of factors that represent your ability to pay back the loan. To increase your chances of getting approved, you’ll need a good credit score, a stable income, and a low debt-to-income ratio. Some lenders may have a minimum credit score to approve you for a personal loan. [3] Experian, “6 Personal Loan Requirements to Know Before You Apply” https://www.experian.com/blogs/ask-experian/personal-loan-requirements/

How much can you borrow with a personal loan?

The amount of money you can borrow through a personal loan also depends on your credit score and debt-to-income ratio. Typically, loan amounts can vary from $500 to $50,000 or more. Some banks and other lenders may have a cap of $20,000 for personal loans, while others will offer a lot more to borrowers with exceptional credit scores. [4] Forbes, “How Much Money Can You Get With a Personal Loan?” https://www.forbes.com/advisor/personal-loans/how-much-personal-loan-can-i-get

Are there restrictions on how personal loans can be used?

You can use a personal loan for a wide variety of expenses, but there may be some things that you may not be able to use a loan to pay for. These could include:

• College tuition
• A down payment on a house purchase
• Gambling or illegal purchases
• Business expenses

Certain lenders also have specific restrictions on what you can use their personal loans for, so it’s best to check with each lender to understand any limitations.

[5] Credible, “What You Can’t Use a Personal Loan For” https://www.credible.com/personal-loan/what-cant-you-use-a-personal-loan-for

Methodology

A survey was carried out on behalf of Self in April 2026, which asked 2,268 adults about their use of personal loans.

The breakdown of respondents was as follows:

Gender:

• Female - 52.2%
• Male - 47.8%

Age range:

• 18-27 - 18.2%
• 28-43 - 26.5%
• 44-59 - 19.9%
• 60-78 - 17.6%
• 79+ - 17.8%

Sources

• ^[1] “TransUnion 2026 Originations Forecast Shows Continued Positive Momentum Amidst Moderate Expansion” https://newsroom.transunion.com/q4-2025-ciir/
• ^[2] Experian, “Average Personal Loan Balance Grows 1.7% in 2025” https://www.experian.com/blogs/ask-experian/research/personal-loan-study/
• ^[3] Experian, “6 Personal Loan Requirements to Know Before You Apply” https://www.experian.com/blogs/ask-experian/personal-loan-requirements/
• ^[4] Forbes, “How Much Money Can You Get With a Personal Loan?” https://www.forbes.com/advisor/personal-loans/how-much-personal-loan-can-i-get
• ^[5] Credible, “What You Can’t Use a Personal Loan For” https://www.credible.com/personal-loan/what-cant-you-use-a-personal-loan-for