Best Personal Loan Rates This Week, August 19, 2025: Rates on the Rise

Personal loan rates moved higher this week for both shorter and longer-term loans. The average APR for a 3-year loan climbed to 13.57%, while 5-year rates hit 20.07%. Even though the Fed held rates steady at its July 30 meeting, lenders are still making changes based on market trends.

If you're thinking about borrowing, it's a good time to compare offers and lock in a rate before they go even higher.

Below, we've rounded up the best personal loan rates available right now.

Weekly rate trends

Both 3-year and 5-year personal loan rates moved up this week, nudging borrowing costs a bit higher across the board. It's a small shift, but one worth watching -- especially if you're thinking about locking in a loan soon.

The Fed kept rates steady at its July 30 meeting, but lenders are still adjusting based on the broader economic picture. If your credit is in great shape, you may still qualify for rates under 9%, particularly on shorter terms. Looking ahead, many are waiting to see if the Fed will cut rates 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

Choosing a personal loan is -- personal. What's right for you may not be right for someone else. Here's what to look at when you're comparing lenders:

• Check your credit score: Your credit score plays a huge role in your interest rate. Most lenders reserve their lowest APRs for borrowers with good to excellent credit (typically 700+). If your score is lower, you may still qualify, but at a higher rate or with stricter terms.
• Focus on APR: Don't just look at the interest rate. The annual percentage rate (APR) includes fees and gives you the true cost of borrowing. A loan with a slightly higher interest rate but no origination fee might actually be cheaper than one with a lower advertised rate and hefty upfront costs.
• Watch for discounts: Some lenders offer rate reductions if you set up autopay or link a checking account. These perks can shave a few tenths of a percent off your rate, which can really add up over the life of the loan.
• Prequalify without hurting your credit: If you don't want to hurt your credit score, prequalifying can be categorized as a soft credit pull, which won't impact your score. This is a great way to compare real offers side by side before committing.

Who should get a personal loan?

A personal loan shouldn't be something you get just to get. But in the right situation, it can be a powerful tool to manage your money more efficiently. Here are a few use cases:

• Debt consolidation: If you're carrying balances on multiple credit cards, a personal loan can help simplify things. Many borrowers with solid credit use personal loans to refinance high-interest debt into one lower-rate monthly payment. (And a major bonus: fixed terms mean there's a clear end in sight.)
• Emergency expenses: When something unexpected comes up -- a medical bill, urgent car repair, or last-minute travel -- personal loans offer quick access to cash. Most lenders offer fast approval and funding, sometimes as soon as the next business day.
• Big-ticket purchases: If you're planning a home renovation, wedding, or relocation, a personal loan can help you cover the cost with predictable payments and fixed interest. It's often a better option than putting large expenses on a credit card, especially if you qualify for a lower rate.

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

Even though the Fed hasn't made any moves yet in 2025, lenders continue adjusting to the changing economy. This week that meant minor increases to both 3-year and 5-year loans.

If you're thinking about consolidating debt, covering an emergency, or financing a major purchase, check out our favorite personal loans and find the best rate for you.