Best Personal Loan Rates This Week, July 15, 2025: Borrowers Catch a Small Rate Break

Personal loan rates dipped slightly this week, offering a small window of relief for borrowers. The average APR for a 3-year loan dropped to 13.72%, while 5-year loans fell to 19.21%.

Even with the Fed keeping rates steady, lenders continue to tweak their offers amid economic uncertainty. If you're planning to consolidate debt or cover a big expense, now could be a good time to secure a lower rate.

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

Weekly rate trends

Personal loan rates dipped slightly this week, with average APRs for both 3-year and 5-year terms moving down.

The drop offers a small break for borrowers, especially those with excellent credit who continue to qualify for rates under 9%. While the Fed hasn't made any changes to interest rates yet, many are still watching 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

Before applying for a personal loan, it's important to understand how lenders determine your rate -- and what factors can help you save.

• Check your credit score first. Your credit score is one of the biggest factors lenders consider. A score above 700 typically unlocks the most competitive APRs, but even if yours is lower, you may still qualify -- just expect higher rates or stricter terms.
• Don't just look at the interest rate. The annual percentage rate (APR) gives a more accurate picture because it includes fees. In some cases, a loan with no fees and a slightly higher APR might cost you less overall.
• Look for built-in savings. Some lenders offer small rate discounts when you sign up for autopay or have an account with them. It may not seem like much, but these perks can cut your costs over the life of the loan.
• Prequalify to compare offers. Most lenders let you check your estimated rate with a soft credit pull -- no impact on your score. It's a low-risk way to shop around and find the best deal.

When it makes sense to use a personal loan

Personal loans can be a smart tool -- if you're using them for the right reasons. Here are a few of the most common (and practical) uses:

To consolidate high-interest debt

Combining multiple debts into a single loan with a lower fixed rate can simplify your finances and save you money on interest.

For emergency expenses

When unexpected bills pop up -- like a surprise medical charge or urgent home repair -- a personal loan can give you quick access to cash, often within a day.

To cover big purchases

Whether you're planning a major move, renovating your home, or paying for a wedding, personal loans offer predictable payments and fixed payoff dates that make budgeting easier.

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

With rates inching down slightly this week, borrowers with strong credit may want to take action while conditions hold more-or-less steady. A personal loan could help you lock in a better deal and manage expenses on your own terms.

Take a look at this week's top-rated personal loan offers to find one that works for you.