This Week's Personal Loan Rates: May 20, 2025—Rates Inch Down Again
Rates on personal loans declined last week, giving qualified borrowers a chance to secure a reasonable interest rate and finance a project, purchase or even unexpected bills.
From May 12 to May 17, the average fixed interest rate on a three-year personal loan was 14.20% for borrowers with a credit score of at least 720 who prequalified on Credible.com's personal loan marketplace. That's down 1.07 percentage points from the previous week, according to Credible.com. The average rate on five-year personal loans fell last week from 20.37% to 19.70%.
The rate you'll actually receive depends on several factors, including your credit profile and the loans available through your chosen lender. Borrowers with the highest credit scores are likely to receive rates significantly lower than average.
These rates are accurate as of May 17, 2025, and based on the three-year fixed rate.
Related: Best Personal Loans
Personal loan rates fluctuate frequently, and each lender determines and sets different rates. While your rate isn't guaranteed until you sign your loan agreement, you can get an idea of average lender rates below.
The table below compares personal loan rates for three- and five-year terms to help you understand rate trends. Lenders typically consider your loan term and credit history to determine your interest rate.
Your credit score plays a major role in the interest rate a lender offers for a personal loan. Lenders use your credit profile and other factors to evaluate your risk as a borrower. In general, the higher your credit score, the lower the interest rate you'll receive.
The table below compares average personal loan interest rates by credit score, showing how much your score can affect your rate and how much you could save over time.
Since each lender sets its own personal loan rates, use these three simple steps to compare personal loan interest rates:
Related: 5 Personal Loan Requirements To Know Before Applying
We recommend you get a personal loan only when it's necessary. If you're considering a personal loan, these steps can help you understand if it's the right choice:
In some cases, getting a personal loan may not be the best decision. For example, we don't recommend a personal loan if you can't afford the monthly payments or if you can wait to save up the money you need.
Personal loans are available through a variety of institutions, which should help you find a lender that meets your needs. Your credit profile and financing needs typically determine the best lender for you. You can get personal loans from:
While borrowers with strong credit typically get more favorable interest rates, lenders also rely on current market conditions to set interest rates. If you have good credit but your annual percentage rate (APR) is high, it may mean interest rates are generally high. That said, it can also mean your income isn't high enough to qualify for lower rates or your debt-to-income ratio (DTI) is too high.
High personal loan interest rates are a result of current market conditions and/or low credit scores. Lenders set their interest rates based on the economy and your credit profile. If you want to get the lowest rates possible, work on improving your credit score and debt-to-income (DTI) ratio before applying.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
Summer Surge: AI Data Centers And Soaring Heat Test Texas Power Grid
Texas is poised to set a new record for peak energy demand this summer, driven by scorching temperatures and surging needs from new data centers and air conditioning use. The Electric Reliability Council of Texas (ERCOT), the state's power grid operator, projects a peak demand of 87,500 megawatts, surpassing the August 2023 record of 85,464 megawatts and significantly higher than the 74,650 megawatts in 2021. The increase is fueled, in part, by data centers powering AI and cloud storage, which is expected to grow from 2,400 megawatts next year to over 22,000 megawatts by 2030. Rising cryptocurrency production is also contributing to the demand for electricity, although it is expected to account for only a third of the demand for data centers within five years. Despite the strain, ERCOT anticipates the grid will meet demand, bolstered by increased solar production and battery storage capacity. However, emergency alerts are most likely in August after 9 p.m., when solar output declines. 'It has become statistically challenging to record a hotter-than-normal summer,' ERCOT forecaster Chris Coleman wrote, per Axios Dallas. He noted that six of Texas' 10 hottest summers have occurred in the last decade. Last summer ranked as the seventh-hottest on record, despite above-average rainfall. ERCOT expects energy use to continue rising over the next five years as Texas' population grows and summers intensify, pushing the grid to adapt to unprecedented demand.
Yahoo
13 minutes ago
- Yahoo
4 Signs Stagflation Could Be Coming in 2025
You've heard of inflation (and know how terrible it is), but have you heard of 'stagflation'? It's also terrible. Merriam-Webster defines stagflation as 'persistent inflation combined with stagnant consumer demand and relatively high unemployment.' Yikes. Find Out: Read Next: Some economic experts think that stagflation in the U.S. is on the horizon. Why? What signs indicate stagflation is coming and what can you do to financially prepare for it? A slowing GDP (gross domestic product) growth — when the economy's output starts to decline or contract — is a big red flag warning of stagflation. And that flag was waved earlier this year. GDP decreased at an annual rate of 0.3% in the first quarter of 2025 (January, February and March), according to the advance estimate released by the U.S. Bureau of Economic Analysis [2]. 'The Federal Reserve now projects real GDP growth at 1.4% for 2025, down from 1.7% in its March projection,' said Alex Tsepaev, CSO at B2PRIME Group. 'The OECD and World Bank have also downgraded U.S. growth expectations due to trade tensions and policy uncertainty. Additionally, the Conference Board's Leading Economic Index (LEI) declined again in May, marking a 2.7% drop over the past six months, which is approaching recessionary territory.' Learn More: Back to the word so closely tied to 'stagflation' — inflation. A key sign of stagflation is persistent inflation. This is also called 'sticky inflation,' and we see it hover around essentials like food and fuel. 'These categories are less sensitive to interest rate hikes, which makes them persistently expensive,' said Dane May, principal and co-founder at DePaolo & May Strategic Wealth. 'These are non-discretionary expenses that strain household budgets. When consumers are forced to spend more on essentials, they cut back elsewhere. That slows economic growth and makes inflation more painful because it's tied to necessities rather than luxury or optional spending.' Another key warning sign of stagflation is a weakening labor market. With this, we see a decrease in job openings, layoffs and rising unemployment rates. Right now, the labor market is showing signs of weakening. 'Recent jobs data has consistently missed economists' expectations,' said Jake Falcon, CRPC, CEO at Falcon Wealth Advisors. 'Employers added far fewer jobs in February than in January, and unemployment claims have risen. This softening labor market is a classic precursor to economic stagnation.' Next comes falling consumer sentiment, which, yes, we're also seeing right now in the U.S. as people pull the reins on spending. 'Concerned by the inflationary outcome of the ongoing tariff war, people begin to feel pessimistic about the economy, which leads to reduced spending and investment,' Tsepaev said. 'Indeed, retail sales fell 0.9% in May, worse than expected, as consumers reduced their purchases of big-ticket items, such as cars and other luxuries. Likewise, companies become cautious about expanding due to uncertainty or rising costs.' So how do you fortify your finances to shelter from stagflation? First, double down on your investing strategy. One of the awesome things about investing is that if you do it right and diversify, you can hedge against inflation. 'Consider Treasury Inflation-Protected Securities (TIPS), commodities and real assets like real estate,' Falcon said. 'If you are missing these in your portfolio now is a time to get a second opinion.' It's always the right time to pay off high-interest debt, but there's nothing like the high probability of stagflation to put the pressure on. 'When inflation increases, the true value of debt goes down,' said Fei Chen, investment expert and founder and CEO at 'But interest rates can also increase as central banks attempt to stem inflation, which increases the cost of borrowing. Paying off high-interest debt or fixing rates before inflation spirals out of control can provide some mitigation.' The U.S. appears to be on the precipice of stagflation, but the economy can change rapidly and without notice. It's important to keep up with the news (calmly and without letting it provoke you to, say, drop an investment without heavy consideration and research) and stay flexible. 'Regularly review your financial plan and adjust as needed,' Falcon said. 'Make sure your portfolio is aligned with your financial plan.' More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on 4 Signs Stagflation Could Be Coming in 2025
TechCrunch
17 minutes ago
- TechCrunch
OpenAI reportedly ‘recalibrating' compensation in response to Meta hires
In Brief With Meta successfully poaching a number of its senior researchers, an OpenAI executive reportedly reassured team members Saturday that company leadership has not 'been standing idly by.' 'I feel a visceral feeling right now, as if someone has broken into our home and stolen something,' Chief Research Officer Mark Chen wrote in a Slack memo obtained by Wired. In response to what appears to be a Meta hiring spree, Chen said that he, CEO Sam Altman, and other OpenAI leaders have been working 'around the clock to talk to those with offers,' and they've 'been more proactive than ever before, we're recalibrating comp, and we're scoping out creative ways to recognize and reward top talent.' Over the past week, various press reports have noted eight researchers who departed OpenAI for Meta. Altman even complained on a podcast that Meta was offering '$100 million signing bonuses,' a description that Meta executives have pushed back against internally.
