{"id":256,"date":"2025-06-03T10:00:11","date_gmt":"2025-06-03T10:00:11","guid":{"rendered":"https:\/\/valentinefranc.com\/?p=256"},"modified":"2025-06-03T11:33:49","modified_gmt":"2025-06-03T11:33:49","slug":"this-weeks-personal-loan-rates-june-3-2025-rates-rise-again","status":"publish","type":"post","link":"https:\/\/valentinefranc.com\/index.php\/2025\/06\/03\/this-weeks-personal-loan-rates-june-3-2025-rates-rise-again\/","title":{"rendered":"This Week\u2019s Personal Loan Rates: June 3, 2025\u2014Rates Rise Again"},"content":{"rendered":"

Last week, personal loan rates increased.<\/strong> However, it\u2019s still possible for highly qualified borrowers to pick up a reasonable interest rate on a personal loan. If you\u2019re interested in financing a major purchase or project, it\u2019s a good time to shop for a loan.<\/p>\n

From May 26 to May 31, the average fixed rate on a three-year personal loan was 13.93% for borrowers with a credit score of at least 720 who prequalified on Credible.com\u2019s personal loan marketplace. The rate was 12.99% the previous week, according to Credible.com. The average rate on a five-year personal loan fell 1.01 percentage points last week to 18.71% from 19.72%.<\/p>\n

Remember, well-qualified borrowers may be offered rates well below average. The rate you\u2019ll actually receive depends on several factors, like your credit profile and the loan terms you choose.<\/p>\n

These rates are accurate as of May 31, 2025, and based on the three-year fixed rate.<\/p>\n

Related: <\/strong>Best Personal Loans<\/a><\/span><\/p>\n

Current Personal Loan Interest Rates for June 3, 2025<\/strong><\/h2>\n

Personal loan rates<\/a><\/span> fluctuate frequently, and each lender determines and sets different rates. While your rate isn\u2019t guaranteed until you sign your loan agreement, you can get an idea of average lender rates below.<\/p>\n

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Personal Loan Rate Trends Over Time<\/strong><\/h3>\n

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.<\/p>\n

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Personal Loan Rates by Credit Score<\/strong><\/h3>\n

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\u2019ll receive.<\/p>\n

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.<\/p>\n

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Get the Lowest Personal Loan Rates<\/strong><\/h2>\n

Each lender sets its personal loan rates, so we recommend using these steps to land the best rates:<\/p>\n

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  1. Prequalify with multiple lenders.<\/strong> Prequalifying for a personal loan<\/a><\/span> lets you check your eligibility and potential rates without impacting your credit score. While this doesn\u2019t guarantee you\u2019ll receive a loan, it can allow you to compare possible amounts and terms between lenders.<\/li>\n
  2. Review your offers.<\/strong> Once you\u2019ve seen if you prequalify, review and compare offers to find the best option. Consider the interest rate, loan amount, repayment terms and any fees. Depending on your financial situation, you also might want to consider lenders who don\u2019t charge late payment fees or prepayment penalties.<\/li>\n
  3. Apply.<\/strong> Once you\u2019ve selected a lender, submit an application online or in person. Gather your documentation, including bank statements, pay stubs and identification. This requires a hard credit check that temporarily drops your score by a few points.<\/li>\n<\/ol>\n

    Related:<\/strong> 5 Personal Loan Requirements To Know Before Applying<\/a><\/span><\/p>\n

    Should I Get a Personal Loan?<\/strong><\/h2>\n

    We recommend you get a personal loan only when it\u2019s necessary. If you\u2019re considering a personal loan, these steps can help you understand if it\u2019s the right choice:<\/p>\n

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    1. Identify why you need funds.<\/strong> Before taking out a personal loan, understand how you would use the funds. Some common personal loan uses include home improvement, debt consolidation and covering emergency expenses. It\u2019s best to avoid using personal loans for nonessential expenses that you could potentially save up for, like vacations and holiday gifts.<\/li>\n
    2. Determine how much financing you need.<\/strong> Once you identify why you need the funds, calculate how much you need to cover your costs. This amount will typically inform you of the loan amount you need or if you can use an alternative.<\/li>\n
    3. Consider personal loan alternatives.<\/strong> If you only need to borrow a small amount of money, such as under $2,000, consider alternative options such as a payday alternative loan<\/a><\/span> (PAL) or a buy now, pay later<\/a><\/span> service.<\/li>\n
    4. Find a lender that fits your needs.<\/strong> If you can\u2019t find an alternative that fits your needs, find a personal loan lender that provides sufficient financing.<\/li>\n<\/ol>\n
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      \n Pro Tip<\/span>\n <\/div>\n
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      In some cases, getting a personal loan may not be the best decision. For example, we don\u2019t recommend a personal loan if you can\u2019t afford the monthly payments or if you can wait to save up the money you need.<\/p>\n<\/div>\n<\/div>\n

      Where Can You Get a Personal Loan?<\/strong><\/h2>\n

      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:<\/p>\n