Best Personal Loan Rates This Week, August 12, 2025: 3-Year and 5-Year Move in Opposite Directions Again

Personal loan rates headed in different directions again this week. The average APR for a 3-year loan dropped to 13.07%, while 5-year rates rose to 19.81%.

The Fed chose to keep rates steady at its July 30 meeting, but lenders are still adjusting their offers. If you're planning to borrow, now could be a good time to shop around.

Below, we've rounded up the best personal loan rates available this week.

Weekly rate trends

Personal loan rates split again this week. The average APR for 3-year loans dipped somewhat, while 5-year rates continued their rise. That means short-term borrowers may catch a small break, but longer-term loans are getting more expensive.

The Fed left the federal funds rate unchanged at its July 30 meeting. Still, lenders are making moves of their own as the economy remains uncertain. If you have strong credit, you could still lock in a rate below 9%, especially on shorter terms. Many are keeping an eye on the Fed for possible cuts later this year.

Average personal loan interest rates

Here's a quick look at the average personal loan rates this week.

How to compare personal loan rates

Getting a good personal loan isn't just about picking the lowest number. Here's what to look for:

• Know your credit score. It's one of the biggest things lenders consider. A score over 700 usually gets you the best rates. If yours is lower, you might still qualify -- but expect to pay more.
• Check the APR, not just the interest rate. APR includes fees, so it gives a better picture of what the loan will really cost. A higher rate with no fees might actually be cheaper than a "low-rate" loan with extra costs.
• Look for small savings. Some lenders knock down your rate if you set up autopay or already bank with them. These tiny discounts can make a real difference over time.
• Prequalify before you apply. Many lenders let you see your rate without hurting your credit. It's a simple way to compare options and avoid surprises.

When a personal loan might make sense

A personal loan can be a smart way to cover big expenses -- if you have a clear plan for how to use it. Here are a few common reasons people borrow:

• To pay off debt. Rolling multiple high-interest credit cards into one loan with a lower fixed rate can help you save and stay on track.
• For unexpected bills. Emergency repairs or medical costs can pop up fast. A personal loan gives you quick cash -- sometimes within one business day.
• To cover big costs. Home improvements, weddings, or major moves can get expensive. A personal loan helps you break that cost into smaller monthly payments.

Our top pick this week: Upstart

Upstart is our top pick this week for its fast funding, wide loan range, and flexibility to pay off your loan early with no prepayment penalties. While it does charge an origination fee, qualified applicants can score lower rates than many traditional lenders offer -- making it a standout option right now.

Read our full Upstart review to learn more and check your rate -- there's no impact to your credit score, and you could get your funds in as little as one business day.

Bottom line

This week, 3-year rates dipped a decent amount while 5-year rates crept up again. The Fed hasn't changed rates this year, but lenders are still reacting to the economy. If you're thinking about borrowing, locking in a short-term rate now could save you money -- especially if your credit is strong.

Take a look at this week's best personal loan offers to see what works for you.