Here's Why July Might Be a Smart Month to Lock in a Personal Loan

The economy's giving off mixed signals right now. Inflation is cooling, but not quite down to the Federal Reserve's 2% target. Interest rates are high, but cuts keep getting kicked down the road. Tariff worries continue to grow, but their overall effect is still unclear.

Nobody quite knows what's coming next.

That's why July might be one of the better months to lock in a personal loan. You can get a predictable rate, consolidate debt before back-to-school and holiday expenses kick in, and not have to stress about whether lenders will tighten their standards later this year.

Personal loans offer fixed rates and predictable payments

One of the biggest benefits of a personal loan is stability.

Unlike credit cards with variable APRs, most personal loans come with fixed interest rates and a set payoff timeline. That means your payments won't change, even if the Fed shakes things up later this year.

Right now, the average personal loan APR is 12.65% for borrowers with good credit, according to Bankrate. That's about half the average APR of credit cards, which sits at around 24.33%.

Here's a quick side-by-side comparison of how that looks with a $10,000 loan and a five-year payback period.

If you're carrying credit card balances, consolidating with a personal loan could save you thousands in interest. Compare today's top debt consolidation loan options and see what rate you qualify for.

Summer is expensive -- plan ahead with stable financing

I track my expenses religiously, and I can tell you without a doubt the most expensive months in my household are July, August, November, and December.

Family vacations, backyard projects, kids in summer camps, etc. -- it can be an expensive season for many families across the U.S.

Taking a personal loan can help you:

• Fund a home project with one lump-sum payment
• Consolidate debt before school and holiday spending starts in the fall
• Lock in financing before costs change

Some folks even use personal loans as a cash cushion heading into back-to-school season or the fall holiday blitz.

Approval could get tougher later in the year

If you're thinking about applying for a personal loan, timing can make a big difference.

Lenders tend to adjust their offers based on broader economic conditions. With potential interest rate shifts, inflation, and market volatility still on the table, loan terms could change in the months ahead.

That might mean fewer promotional rates, stricter approval criteria, or higher credit score requirements.

There's no perfect month to borrow money. But July checks a lot of boxes with lending standards being pretty flexible (for now) and summer spending in full swing.

So if you're planning to knock out some credit card debt, tackle a big expense, or simply lock in some stability before the financial picture potentially gets murkier, now's a smart time to act. Find the right personal loan for your needs and lock in your rate today.