Best Personal Loan Rates This Week, August 26, 2025: 3-Year and 5-Year Rates Dip

Personal loan rates dropped this week for both 3-year and 5-year terms. The average APR for a 3-year loan is down to 13.31%, while 5-year rates fell to 18.69%.

The Fed held rates steady at its last meeting, but a rate cut is widely expected in September. Lenders are already adjusting in anticipation, which could mean more changes ahead.

If you're planning to borrow, now's a great time to shop around and see what kind of deal you can get. Below, we've rounded up the best personal loan rates available this week.

Weekly rate trends

Personal loan rates dipped this week, with both 3-year and 5-year terms seeing welcome drops. It's a good sign for borrowers -- especially with a potential Fed rate cut now expected at the September meeting, just weeks away.

If your credit is strong, you could still lock in a rate below 9%, particularly on shorter-term loans. With bigger changes possibly on the horizon, now might be a smart time to compare offers.

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 the best deal on a personal loan starts with understanding what matters most. Here's how to evaluate your options:

• Start with your credit score. Your credit health plays a big role in the rate you'll get. If your score is 700 or higher, you're more likely to land the lowest APRs. Lower scores can still qualify, but usually come with higher costs or tighter terms.
• Focus on the full picture. The APR -- not just the interest rate -- gives you a clearer sense of the loan's true cost since it includes fees. Sometimes, a no-fee loan with a slightly higher APR can be cheaper in the long run.
• Ask about available discounts. Many lenders shave off a bit from your rate if you enroll in autopay or have an existing account with them. These small savings can add up over time.
• Prequalify before you apply. Most lenders let you see potential offers with a soft credit check, which doesn't hurt your score. That makes it easy to shop around and compare rates without commitment.

When a personal loan makes sense

Used wisely, a personal loan can help you take control of your finances or handle big expenses. Here are a few smart ways people use them:

Debt consolidation

Rolling multiple high-interest balances into a single fixed-rate loan can simplify your payments and potentially lower what you pay in interest over time.

Unexpected expenses

Need fast cash for a surprise medical bill or emergency home repair? Personal loans can deliver funds quickly -- sometimes as soon as the next business day.

Big-ticket purchases

From moving costs to major renovations or wedding expenses, a personal loan can help you budget with predictable payments and set payoff terms.

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

If you're considering a personal loan, now could be a good time to explore your options. Rates appear to be trending downward -- giving borrowers with strong credit a chance to lock in favorable terms.

Ready to compare? Check out these standout personal loan offers to find the right fit for your needs.