Best Personal Loan Rates This Week, Sept. 3, 2025: Rates Creep Back Up
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Personal loan rates inched higher this week for both 3-year and 5-year terms. The average APR for a 3-year loan rose to 13.71%, while 5-year rates climbed to 19.33%.
A rate cut is expected at the Federal Reserve meeting in two weeks, however, so hopefully this increase proves to be temporary.
If you're thinking about borrowing, now's a good time to compare offers. Below, we've rounded up the best personal loan rates available this week.
Weekly rate trends
Personal loan rates ticked up this week for both 3-year and 5-year terms, pushing borrowing costs a bit higher. It's a small bump, and hopefully a short-lived one -- especially with a Fed rate cut expected in just two weeks at the September meeting.
If you've got strong credit, you may still be able to snag a rate under 9%, particularly on shorter-term loans. And with a potential shift in rates coming soon, it's a good idea to keep an eye on weekly movement to help pin down the best time to apply.
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 | 13.71% | Up from 13.31% | Down from 16.08% |
| 5 years | 19.33% | Up from 18.69% | Down from 21.14% |
How to compare rates for personal loans
Not all personal loans are created equal -- and the best deal for you depends on a few key factors.
- Check your credit score first. It's one of the biggest things lenders use to decide your rate. If your score is 700 or higher, you'll likely qualify for lower APRs. But even with a lower score, you might still get approved -- it just may come with a higher rate or stricter terms.
- Don't stop at the interest rate. The APR tells the full story, since it includes both interest and fees. Sometimes, a loan with a slightly higher APR but no fees ends up costing less overall.
- Ask about rate discounts. Some lenders offer a break if you set up autopay or already bank with them. These small savings can add up, especially over a multi-year loan.
- Prequalify to compare offers. Most lenders let you check your estimated rate with a soft credit pull. That means you can shop around without hurting your score.
When a personal loan might make sense
Personal loans aren't one-size-fits-all -- but they can be a smart way to handle big costs or clean up your finances. Here's how people commonly use them:
- To consolidate debt. If you've got credit card balances with high interest, a personal loan can roll them into one monthly payment with a fixed rate and clear payoff date.
- To cover surprise expenses. Life throws curveballs -- like medical bills or emergency repairs. Personal loans can provide fast funding, sometimes within one business day.
- To fund major purchases. Whether you're moving, upgrading your home, or planning a big event, a personal loan can help you spread out the cost with set monthly payments.
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
After a short dip, personal loan rates are inching higher again -- both 3-year and 5-year terms saw increases this week. While the Fed's next move is still two weeks out, lenders aren't waiting.
If you've been thinking about borrowing, now might be a smart time to lock in a rate in case they move higher before they start trending down -- especially if your credit's in good shape.
Take a look at this week's top personal loan offers and see what kind of deal you can still grab.
FAQs
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Even though the Fed kept rates steady at its last meeting on July 30, lenders still adjust their offers based on market trends and the broader economy.
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Shorter terms generally offer lower rates but higher monthly payments. Choose based on your budget and goals.
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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.
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.