Best Personal Loan Rates This Week, July 1, 2025: Rates Rebound After Recent Dip

Personal loan rates are on the rise again. This week, the average APR for a 3-year loan climbed to 13.87%, while 5-year loans ticked up to 19.53%.

Although the Fed kept rates steady in June, lenders are still adjusting their offers as economic uncertainty continues.

If you're looking to consolidate debt or cover a large expense, locking in a rate now could save you money -- especially if rates continue to climb. Here's a look at the best personal loan rates available this week.

Weekly rate trends

Both 3-year and 5-year personal loan rates moved higher this week, reversing some of the declines seen in recent months. According to Credible, average APRs ticked up slightly across the board -- though they're still lower than the highs for the year that we saw back in early May.

Borrowers with top-tier credit continue to land some of the most competitive offers, often under 9%, especially for shorter-term loans. While the Fed hasn't made any changes to interest rates yet, markets are still eyeing potential cuts later in the 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

Finding the right personal loan depends on your financial goals and credit profile. Here's what to keep in mind when weighing your options:

• Know your credit score: Lenders use your credit score to set your rate. Generally, scores above 700 qualify for the lowest APRs. If your score is lower, you can still get approved -- but expect higher rates or more restrictions.
• Look beyond the interest rate: Focus on the APR, which includes both the interest rate and any fees. A slightly higher rate with no fees can be cheaper than a low-rate loan with a big upfront cost.
• Ask about discounts: Some lenders offer rate reductions for setting up autopay or using a linked bank account. These small perks can save you money over time.
• Prequalify with no risk: Many lenders let you check your estimated rate with a soft credit pull, so you can compare offers without impacting your score.

When a personal loan makes sense

A personal loan can be a smart move -- if you use it strategically. Here are a few of the most common reasons people borrow:

Debt consolidation

Combine multiple high-interest balances into one lower-rate loan. You'll streamline your payments and get a fixed timeline to pay off what you owe.

Emergency costs

For unexpected expenses like medical bills or urgent repairs, personal loans provide fast funding -- sometimes within one business day.

Large purchases

Whether it's a home upgrade, major life event, or relocation, a personal loan can help you manage big costs with fixed payments and predictable rates.

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.

Check your rate with Upstart -- 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've been thinking about consolidating high-interest debt or funding a big expense, now's a smart time to act. With rates still elevated but holding steady, borrowers with strong credit have a window to lock in better terms.

See our favorite personal loans to start comparing.