If you’re shopping for a personal loan this week, here’s the good news: 3-year loan rates dipped slightly, while 5-year rates inched up, breaking a monthlong streak of mostly falling rates. According to Credible data, the average APR for a 3-year personal loan is 13.88%, while 5-year loans now average 19.25%.

The Federal Reserve held rates steady at its June 18 meeting, and while cuts are still expected later this year, that doesn’t guarantee lower personal loan rates. Lenders don’t always pass Fed cuts through immediately — especially in an uncertain economy — and rates can even rise if credit markets tighten.

If you’re carrying high-interest credit card debt or need funds soon, waiting may not be practical. Today’s rates could still be among the better offers you’ll see for a while. It’s worth comparing lenders and prequalifying now to lock in the best deal before conditions shift.

Weekly rate trends

According to the latest data from Credible, average personal loan rates decreased slightly this week for 3-year terms, while 5-year rates rose. The dip in 3-year rates follows a sharp increase the previous week, while the uptick in 5-year terms breaks a monthlong streak of mostly falling rates. Despite the mixed movement, rates remain below their early May highs, and borrowers with strong credit continue to see offers under 9%.

While the Fed has held steady for now, cuts are still projected later in the year. Borrowers with strong credit are continuing to see offers below 9% — especially for debt consolidation and shorter terms.

Average personal loan interest rates

Here’s a quick look at the average personal loan rates this week.

How to compare personal loan rates

Choosing a personal loan is — personal. What’s right for you may not be right for someone else. Here’s what to look at when you’re comparing lenders:

• Check your credit score: Your credit score plays a huge role in your interest rate. Most lenders reserve their lowest APRs for borrowers with good to excellent credit (typically 700+). If your score is lower, you may still qualify, but at a higher rate or with stricter terms.
• Focus on APR: Don’t just look at the interest rate. The annual percentage rate (APR) includes fees and gives you the true cost of borrowing. A loan with a slightly higher interest rate but no origination fee might actually be cheaper than one with a lower advertised rate and hefty upfront costs.
• Watch for discounts: Some lenders offer rate reductions if you set up autopay or link a checking account. These perks can shave a few tenths of a percent off your rate, which can really add up over the life of the loan.
• Prequalify without hurting your credit: If you don’t want to hurt your credit score, prequalifying can be categorized as a soft credit pull, which won’t impact your score. This is a great way to compare real offers side-by-side before committing.

Who should get a personal loan?

A personal loan shouldn’t be something you get just to get. But in the right situation, it can be a powerful tool to manage your money more efficiently. Here are a few use cases:

Debt consolidation

If you’re carrying balances on multiple credit cards, a personal loan can help simplify things. Many borrowers with solid credit use personal loans to refinance high-interest debt into one lower-rate monthly payment. (And a major bonus: fixed terms mean there’s a clear end in sight.)

Emergency expenses

When something unexpected comes up — a medical bill, urgent car repair, or last-minute travel — personal loans offer quick access to cash. Most lenders offer fast approval and funding, sometimes as soon as the next business day.

Big-ticket purchases

If you’re planning a home renovation, wedding, or relocation, a personal loan can help you cover the cost with predictable payments and fixed interest. It’s often a better option than putting large expenses on a credit card, especially if you qualify for a lower rate.

Bottom line

Rates are still on the higher side, but the Fed’s decision to hold — for now — could give borrowers with good credit a valuable window of opportunity. If you’re thinking about consolidating debt, covering an emergency, or financing a major purchase, it’s smart to act before lenders make any changes.

Compare multiple lenders and prequalify while rates are relatively stable — you could lock in a better deal before the market shifts.

See our favorite personal loans and find the best rate for you.