Best Personal Loan Rates This Week, July 8, 2025: Rates Rise Again

Personal loan rates are continuing their upward climb. This week, average APRs rose again, reaching 14.36% for 3-year loans and 19.64% for 5-year terms.

Despite the Fed holding rates steady last month, lenders are still adjusting in response to market uncertainty. If you're thinking about consolidating debt or financing a major purchase, now might be a smart time to act -- especially if rates keep heading higher.

Below, we highlight the top personal loan offers available this week.

Weekly rate trends

Personal loan rates climbed again this week, with both 3-year and 5-year terms seeing modest increases. The average APR rose slightly across the board, according to Credible, though rates remain below the peak levels reached in early May.

Borrowers with strong credit are still finding the best deals -- often below 9% -- especially for shorter loan terms. And while the Fed has held interest rates steady, there's speculation that cuts could still be coming 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

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.

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're considering a personal loan, now could be a good time to explore your options. Rates remain elevated but mostly stable -- 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.