Best Personal Loan Rates This Week, July 29, 2025: Rates See a Bump

Personal loan rates moved higher across the board this week. The average APR for 3-year loans rose to 13.96%, while 5-year rates climbed to 19.62%.

Even though the Fed hasn't made any changes yet this year, the next Fed meeting concludes tomorrow, so lenders may soon be adjusting their offers in response. If you're thinking about borrowing, it may be worth locking in a rate before they rise further.

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

Weekly rate trends

Personal loan rates moved higher across the board this week, with both 3-year and 5-year terms seeing increases. It's a modest shift, but one that could signal continued volatility as lenders respond to ongoing economic uncertainty.

Borrowers with excellent credit are still in the best position to lock in low rates -- often below 9%, especially on shorter-term loans. While the Fed has yet to adjust its benchmark rate, speculation around possible cuts later this year continues to influence the lending landscape.

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 means understanding how lenders set your rate -- and knowing where you can save.

• Check your credit score. It's one of the biggest factors in determining your rate. Scores above 700 usually qualify for the lowest APRs, but even if your score's lower, you may still get approved -- just with higher rates or stricter terms.
• Pay attention to the APR, not just the rate. APR includes both interest and fees, giving you a clearer sense of the loan's total cost. In some cases, a slightly higher APR with no upfront fees can be the better deal.
• Look for discounts. Some lenders reduce your rate if you set up autopay or have an account with them. These small incentives can add up over the life of your loan.
• Prequalify without hurting your credit. Many lenders let you check your estimated rate using a soft credit pull. It's a quick, risk-free way to compare offers before you commit.

When a personal loan makes sense

A personal loan can be a smart option -- if it fits your needs and you use it strategically. Here are a few common scenarios:

• Consolidating debt: Merging high-interest credit card balances into a single fixed-rate loan can simplify your finances and reduce what you pay in interest.
• Handling emergencies: From urgent car repairs to medical bills, personal loans offer fast access to funds -- sometimes within just one business day.
• Covering major expenses: Whether you're moving, remodeling your home, or planning a big event, a personal loan gives you predictable payments and a clear repayment timeline.

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

Both 3-year and 5-year personal loan rates ticked up this week, a reminder that borrowing costs can shift quickly. If you're planning to take out a loan, locking in a rate sooner rather than later could help you avoid further increases -- especially if you have strong credit.

Explore this week's top personal loan offers to find one that fits your needs and budget.