Average personal loan rates for 3- and 5-year terms have fallen since this time last week. After five consecutive weeks of rising rates, 5-year rates dipped more than 1 percentage point. Rates for 3-year terms fell slightly from last week and continue to fluctuate since reaching a two-year low in early May.
Here are the latest trends in personal loan interest rates from the Credible marketplace, updated weekly. Personal loan interest rates below are expressed in terms of annual percentage rate or APR.
During the week ending August 24, 2025:
- Average personal loan rates on 3-year loans were at 13.31% APR, down slightly from 13.57% last week and down significantly from 15.88% a year ago.
- Average personal loan rates on 5-year loans were at 18.69% APR, down significantly from 20.07% last week and down sharply from 21.69% a year ago.
Read More: APR vs Interest Rate: Understanding the Differences
Current personal loan rates
Where we get our data
Credible is a personal loans marketplace that partners directly with lenders to offer loans for a wide range of credit profiles and loan purposes. Because of the relationships with our bank and fintech partners, we have access to the most current rates that real borrowers are being approved for, along with average rates by credit score and loan purpose, how easy or hard it is to get approved, and more. The data we use is primary source data, updated weekly, and does not include any personally identifiable information about borrowers.
Personal loan historic rate trends
The chart below shows average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender.
Tip
Personal loans are a popular way to consolidate and pay off credit cards and other debt. Prequalify to gauge whether you're likely to get approved for a personal loan and the rates you might qualify for.
Current personal loan interest rates by credit score
Rates on personal loans tend to range between 6.49% APR and 35.99% APR, but the rate you qualify for depends on factors including your credit score and the length of the repayment term. For example, the data chart below shows that borrowers with excellent credit scores are more likely than others to qualify for APRs in the low to mid-teens on 3-year loans and 5-year loans. It also shows that rates for longer-term loans tend to be higher, regardless of credit score.
Here are current ranges for average interest rates for borrowers in different credit score categories, according to Credible personal loan marketplace data:
- Excellent credit: 11.18% on 3-year loans, 16.73% on 5-year loans
- Very good credit: 13.52% on 3-year loans, 19.16% on 5-year loans
- Good credit: 20.56% on 3-year loans, 24.43% on 5-year loans
- Fair credit: 29.33% on 3-year loans, 31.66% on 5-year loans
Borrowers with bad credit tend to receive the highest APRs of any credit score category, with rates typically falling in the 32% to 36% range. Keep in mind that all lenders use different methods to evaluate borrowers, which is why it's important to prequalify with several.
Where are interest rates headed?
While rates continue to fluctuate across different types of credit and savings accounts, the federal benchmark that helps determine interest rates remains unchanged. The Federal Reserve voted to hold rates steady at its most recent meeting on July 30, as it did at previous meetings in January, March, May, and June. However, Fed chair Jerome Powell signaled a possible rate cut in September at an economic policy conference last Friday.
The target range for the federal funds rate currently sits at 4.25% to 4.50%. This is down from a high of 5.25% to 5.50% last year, prior to the Federal Reserve's September, November, and December rate cuts. As of August 25, the CME FedWatch forecasting tool predicts an 84.3% chance that the range will be lowered to 4.00% to 4.25% at the next meeting in September.
See other personal loan rates:
- Credit card consolidation loan interest rates
- Debt consolidation loan interest rates
- Home improvement loan interest rates
- Bad credit personal loan interest rates
What are personal loans used for?
The most common use for a personal loan is debt consolidation, according to Credible marketplace data. Debt consolidation, including credit card refinancing, accounted for over $75 million of disbursed loans in July — about 63% of people approved for a loan via the Credible marketplace used it for either debt consolidation or credit card refinancing. The average disbursed loan amounts for debt consolidation and credit card refinancing were $26,222 and $22,984, respectively.
Home improvement was the next most common loan purpose, with over $10 million disbursed in July. The average amount for home improvement loans was $20,463.
About Credible
Credible is a multi-lender marketplace that empowers consumers to compare prequalified rates across dozens of lenders based on their credit score, income, and other financial factors. Credible's integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options ― without putting their personal information at risk or affecting their credit score.
Credible also provides no-cost credit monitoring tools that help you manage debt and check your credit score for free.
The Credible marketplace provides an unrivaled customer experience, as reflected by more than 7,503 5-star Trustpilot reviews and a TrustScore of 4.8/5.
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