Average personal loan interest rates for 3-year loans and 5-year loans have risen since this time last week.
During the week ending Oct. 5, 2025:
- Average personal loan interest rates on 3-year loans were at 13.43% APR, up from 13.07% last week and down significantly from 15.22% a year ago.
- Average personal loan interest rates on 5-year loans were at 19.20% APR, up more than half a percentage point from 18.57% last week and down sharply from 22.06% a year ago.
The latest trends in personal loan interest rates from the Credible marketplace are updated weekly. Personal loan interest rates are expressed in terms of annual percentage rate or APR.
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 interest rate trends by year
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
Personal loan interest rates 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. On the other hand, borrowers with fair credit may expect much higher APRs.
Here's the current range of prequalified APRs for borrowers in different credit score categories on the Credible marketplace:
- Excellent credit: 10.75% on 3-year loans, 16.48% on 5-year loans
- Very good credit: 13.40% on 3-year loans, 19.47% on 5-year loans
- Good credit: 19.99% on 3-year loans, 24.35% on 5-year loans
- Fair credit: 29.05% on 3-year loans, 31.84% 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.
Personal loan interest rates by loan purpose
What you use a personal loan for also affects the interest rate. See how average interest rates for each top loan purpose below vary. Data is sourced from the Credible personal loan marketplace and based on closed loans data from October 2024 through September 2025.
Disclosure: Based on personal loans closed from October 2024 through September 2025. Source: Credible.
Where are personal loan interest rates headed?
Personal loan interest rates increased this week following a brief dip after the Fed's quarter-point cut at its September meeting. The target range for the federal funds rate is at 4.00% to 4.25%, down from a high of 5.25% to 5.50% last year.
The Fed's most recent economic projections indicate that two more rate cuts are possible by the end of the year, which could have rates resume a downward trajectory. However, other conditions are at play, including a weakening credit environment, which could potentially mitigate the impact of future (and recent) rate cuts.
Read More: The Fed's Effect on Personal Loan Rates Explained
See other personal loan interest 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 $65 million of disbursed loans in September — over 65% 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 $23,161 and $22,262, respectively.
Home improvement was the next most common loan purpose, with nearly $7.5 million disbursed in September. The average amount for home improvement loans was $19,988.
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 7,600 5-star Trustpilot reviews and a TrustScore of 4.8/5.
FAQ
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