Is 17.00% a Good Personal Loan Rate? (2024)

FAQs

Is 17.00% a Good Personal Loan Rate? ›

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)

Yes, 17.00% is a good personal loan rate for people with good credit.

But you're paying 17 percent interest. You don't need me to tell you this, but that's really, really high. High interest rates mean you spend a lot more time being underwater in a loan, and as long as you're underwater, your options for getting out of this car loan will go from bad to worse.

A good APR for a credit card is around 17% or below. A credit card APR in this range is on par with the interest rates charged by credit cards for people with excellent credit, which tend to have the lowest regular APRs.

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)

What is an ideal debt-to-income ratio? Lenders typically say the ideal front-end ratio should be no more than 28 percent, and the back-end ratio, including all expenses, should be 36 percent or lower.

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.

Key takeaways

Personal loans are typically unsecured, which means there's no collateral to back the loan. Your credit score plays a significant role in determining your personal loan interest rate, and a poor credit score can result in a higher interest rate.

Anything below the average credit card interest rate — 23.55% for new offers, as of February 2023, according to a LendingTree study — is generally considered a good APR, and anything above that rate is considered high.

APR, or annual percentage rate, represents the annual cost of borrowing money, including fees, expressed as a percentage; for credit cards, APR is generally just interest. Understanding a credit card's APRs, including how they are calculated, can help you compare offers and find the right card for you.

Is 17 percent interest on a car loan? ›

So if you're buying a new car and your credit score is above 500, 17% is definitely a rip off. As for used cars, the average interest rate for people with credit scores between 501 and 600 is 17.11%. Therefore, if you're buying a used car and your credit score is below 600, it's a fair deal.

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.

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.

What Is a Good LTV? Most lenders use 80% as the threshold for a good loan-to-value (LTV) ratio. Anything below this value is even better.

A 15% APR is good for credit cards and personal loans, as it's cheaper than average. On the other hand, a 15% APR is not good for mortgages, student loans, or auto loans, as it's far higher than what most borrowers should expect to pay. A 15% APR is good for a credit card. The average APR on a credit card is 22.89%.

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.