Best Personal Loan Rates This Week, Sept. 9, 2025: Rates Rise Again
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Personal loan rates ticked up again this week. The average APR for a 3-year loan rose to 13.73%, while 5-year rates climbed to 19.87%.
The Fed is expected to cut rates at its next meeting on Sept. 17, so this latest bump could be short-lived. Still, lenders are moving ahead of the curve -- and rates may not drop right away.
If you're thinking about taking out a loan, now's a smart time to shop around. Below, we've gathered the best personal loan rates available this week.
Weekly rate trends
Both 3-year and 5-year personal loan rates rose again this week, giving borrowers a slight bump in costs. The increase was modest -- and with a Fed rate cut expected in just a little more than a week, it may not last long.
If your credit is in great shape, you might still find offers under 11%, especially on shorter-term loans. With bigger changes likely around the corner, keeping tabs on weekly shifts could help you lock in a better deal at the right time.
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 | 13.73% | Up from 13.71% | Down from 15.37% |
| 5 years | 19.87% | Up from 19.33% | Down from 21.46% |
How to compare rates for personal loans
Personal loan offers can look similar on the surface -- but the details matter. Here's how to spot the best deal for your situation:
- Start with your credit score. It plays a big role in the rate you'll be offered. If your score is 700 or higher, you'll have a better shot at low APRs. Lower scores can still qualify, but the rates may be steeper or come with extra conditions.
- Look beyond the interest rate. The APR includes fees, so it's a better way to gauge the true cost of a loan. A slightly higher APR with no fees could actually cost you less than a "low-rate" loan with big upfront charges.
- Ask about built-in discounts. Some lenders lower your rate if you set up autopay or already have an account with them. It's a small tweak that can save you real money over time.
- Prequalify to shop around. Most lenders let you check your rate with a soft credit pull, so there's no risk to your score. It's one of the easiest ways to compare offers side by side.
When a personal loan could be the right move
Not every situation calls for a personal loan -- but when used wisely, it can help you take control of your finances. Here are a few smart reasons to borrow:
- Paying off high-interest debt. Combining credit card balances into one loan with a fixed rate can make your payments simpler -- and potentially lower what you pay in interest.
- Handling unexpected costs. From medical bills to emergency home repairs, personal loans can provide quick cash -- sometimes within 24 hours.
- Covering big expenses. Planning a move, home upgrade, or major event? A personal loan helps spread out the cost into manageable monthly payments with a clear 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
Rates are heading back up -- for now. Both 3-year and 5-year loan terms rose again this week. Even though the Fed hasn't made a move yet, lenders are still making slight adjustments.
If you're thinking about borrowing, now might still be a good time to lock in a decent rate, especially if your credit score is high. Check out this week's top personal loan offers to see what's still on the table.
FAQs
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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.
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Even though the Fed has kept rates steady so far in 2025, lenders still adjust their offers based on market trends and the broader economy.
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.