Best Personal Loan Rates This Week, Sept. 16, 2025: Rates Move Opposite Directions Prior to Fed Meeting
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Personal loan rates went in different directions this week. The average APR for a 3-year loan rose to 13.89%, while 5-year rates slipped almost half a percentage point to 19.39%.
All eyes are on the conclusion of the Fed's meeting tomorrow, where a rate cut is widely expected. But lenders aren't waiting to make changes -- and any drop in borrowing costs may take time to show up.
If you're planning to borrow, it's a good moment to compare offers and lock in a rate that works for you. Below, we've rounded up the best personal loan rates available this week.
Weekly rate trends
This week brought a split: 3-year personal loan rates edged up, while 5-year rates slipped slightly. The moves were minor, but they come just ahead of a big moment -- the Fed is widely expected to cut rates when its meeting wraps up tomorrow.
If your credit is strong, you may still see offers under 11%, especially for shorter terms. With a potential rate shift just around the corner, it's a good time to keep an eye on trends and compare your options.
Average personal loan interest rates
Here's a quick look at the average personal loan rates this week.
| Loan Term | Average APR | Week-Over-Week Change | Year-Over-Year Change |
|---|---|---|---|
| 3 years | 13.89% | Up from 13.73% | Down from 15.29% |
| 5 years | 19.39% | Down from 19.87% | Down from 22.01% |
What to know before comparing personal loan rates
Personal loans can look alike at first glance, but the fine print makes all the difference. If you're shopping for a loan, here are a few things to keep in mind:
- Check your credit score. The better your score, the better your rate. A score above 700 usually opens the door to the lowest APRs. But even if you're under that mark, you may still qualify -- just expect higher rates or stricter terms.
- Focus on the APR. Interest rates only tell part of the story. APR includes fees, which gives you a clearer look at what you'll actually pay. A no-fee loan with a higher rate can still be the better deal.
- Look for lender perks. Some lenders shave a little off your rate if you set up autopay or have an account with them already. It's a small win that can pay off over time.
- Compare without hurting your credit. Most lenders offer prequalification with a soft credit check. That lets you shop around for the best rate with zero impact to your score.
When a personal loan might make sense
A personal loan isn't right for every situation -- but it can be a helpful tool if used wisely. Here are a few common reasons borrowers take one out:
- To consolidate debt. Merging multiple high-interest credit cards into one fixed-rate loan can simplify your payments and help you save on interest.
- To cover emergency expenses. Whether it's a surprise medical bill or an urgent home repair, personal loans can provide fast cash -- often within a day.
- To fund a major expense. From home renovations to weddings or big moves, a personal loan can break a large cost into predictable monthly payments with a fixed end date.
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
Personal loan rates headed in two different directions this week. The average APR for 3-year terms climbed slightly, while 5-year rates dipped. The Fed is widely expected to cut interest rates at tomorrow's meeting, but lenders are already making moves ahead of the news.
If you're thinking about borrowing, now could be a smart time to explore your options -- especially if you're leaning toward a longer-term loan. Check out this week's top personal loan offers to see which one fits your needs.
FAQs
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If the Federal Reserve lowers its benchmark rate, personal loan rates may also drop over time. Lenders often adjust their offers after Fed moves, so a cut could make borrowing a little cheaper -- though the impact isn't always immediate.
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Applying may cause a small dip in your score, but a personal loan can help your credit score over time if you use it wisely.
Paying on time every month builds a positive payment history, and consolidating credit card debt with a loan can lower your credit utilization ratio, which is a big factor in your score. It can also contribute to your credit mix.
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Shorter terms generally offer lower rates but higher monthly payments. Choose based on your budget and goals.
Our Research Expert
Brooklyn Sprunger is a full-time Content Manager and Personal Finance Writer at Motley Fool Money, where she oversees product reviews and ratings while also writing about credit cards, bank accounts, investing, auto insurance, and other personal finance topics. She has worked in financial content since 2018, including more than four years at The Motley Fool. When she’s not writing or editing, Brooklyn is likely hiking and watching the Tennessee Vols.