Is 13.00% a Good Personal Loan Rate? (2024)

FAQs

Is 13.00% a Good Personal Loan Rate? ›

Yes, 13.00% is a good personal loan rate for people with good credit. Applicants with a credit score of 660+ could qualify for a personal loan with a 13.00% APR if they choose the right lender and have enough income to afford the loan.

In general, the higher your credit score, the lower the rate will be. Individuals with excellent credit, which is defined as any FICO credit score between 720 and 850, should expect to find personal loan interest rates at about 9% to 13%, and many of these individuals may even qualify for lower rates.

Thirteen percent is high when it comes to auto loans, but rates can far exceed this, so if you're offered a 13% interest rate you need to weigh your options and decide if 13% is a good rate for you. If you're buying a car with an interest rate of 13%, odds are it's because you have bad credit or a thin credit file.

A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)

There's no single answer to “what is a good APR?” The ideal APR (the yearly interest rate you'll pay if you carry a balance) will depend on the type of card you're applying for, as well as your credit score. If you have excellent credit and you're applying for a barebones credit card, you might find APRs as low as 13%.

Deciding what constitutes a good APR for a personal loan therefore relies on various factors. The suitability of an annual percentage rate (APR) for a personal loan varies based on several factors but typically ranges between 6% and 12%.

But depending on the lender, the borrower's credit score and financial situation and other factors, personal loan interest rates can generally range from under 6% to 36%—although higher interest rates aren't unheard of in states where it's allowed.

Avoid loans with APRs higher than 10% (if possible)

“That is, effectively, borrowing money at a lower rate than you're able to make on that money.”

What is a normal amount for a personal loan? ›

The exact range varies from lender to lender. For example, among the best personal loan lenders, there are lenders that offer loans from $1,000 to $50,000, $2,000 to $30,000, and $5,000 to $100,000. The average loan amount for new borrowers is $8,200, according to recent personal loan statistics.

According to a Bankrate study, the average personal loan interest rate is 12.22 percent as of May 5, 2024. However, the rate you get depends on various factors including your credit score, the type of lender you apply with and even where you live.

In most circ*mstances, a 12% interest rate on a personal loan definitely qualifies as a good rate unless the borrower has nearly perfect credit. To guarantee that you will be able to qualify for an interest rate near 12%, you will need to have a good to excellent credit score of over 700 points.

A high-interest loan has an annual percentage rate above 36%, the highest APR that most consumer advocates consider affordable. High-interest loans are offered by online and storefront lenders that promise fast funding and easy applications, sometimes without checking your credit.

A good interest rate on a personal loan is generally on the low end of the range, which currently starts around 7 percent. For example, if you have excellent credit, a rate below 11 percent would be considered good, while 12.5 percent would be less competitive.

At this time, 10% is a good interest rate for a personal loan for a borrower with good credit. Anything below the national average personal loan interest rate, set by the Federal Reserve, is considered a good personal interest rate. Borrowers with poor credit scores will likely be offered a higher interest rate.