Personal loan rates for 3-year terms fell to 13.44% APR during the week of July 13-18, according to data from Credible, marking a 0.47 percentage point drop from the previous week’s 13.91% and offering borrowers some relief in the credit market.
The decline reflects modest movement in personal lending costs as market conditions shift. For borrowers with excellent credit, rates can be significantly lower, though those with fair or poor credit may face rates well above the average.
Five-year personal loan rates moved in the opposite direction, rising to 18.03% from 17.82% the week prior, according to Credible data. This divergence between shorter and longer-term rates is common when borrowers have different expectations about future economic conditions.
What’s Driving These Movements
Personal loan rates are influenced by multiple factors beyond the Federal Reserve’s actions. While the Fed has kept its benchmark rate steady, inflation remains a key consideration for lenders. According to Credible’s analysis, the annual inflation rate fell to 3.5% in June but still sits above the Federal Reserve’s 2% target, which constrains the likelihood of near-term rate cuts.
Your credit score plays a larger role than broad economic trends in determining your actual rate. Borrowers with credit scores above 780 averaged rates around 11.80% for 3-year loans, while those with scores between 720 and 779 saw rates near 15.72%, according to Credible’s marketplace data for the same week.
Debt consolidation remains the most common use of personal loans, accounting for more than 68% of approvals through Credible’s marketplace in June, with average loan amounts of roughly $24,675 for consolidation and $23,160 for credit card refinancing.
The next Federal Open Market Committee meeting is scheduled for late July, and market watchers will monitor any signals about future rate policy. Until then, borrowers shopping for personal loans should compare offers from multiple lenders, as rates vary significantly based on creditworthiness, loan term, and loan purpose.
Sources
- Credible — Personal loan APR data for 3-year and 5-year terms for week ending July 19, 2026; inflation context and rate factors
- Forbes Advisor — Confirmed 3-year rate of 13.44% APR and 0.47 percentage point weekly decline; rate trends by credit score
