Is 9% interest on a loan high?
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.
Avoid loans with APRs higher than 10% (if possible)
According to Rachel Sanborn Lawrence, advisory services director and certified financial planner at Ellevest, you should feel OK about taking on purposeful debt that's below 10% APR, and even better if it's below 5% APR.
A high-interest loan is one with an annual percentage rate above 36% that can be tough to repay.
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)
Generally, what's considered a bad interest rate is anything higher than 10%. Ideally, you want to get an interest rate that's below 5% — but with little or bad credit, that can be harder to achieve.
But the APR is lower, at 9%—meaning there are fewer fees associated with the loan. All other things being equal, you'll pay less over the life of the loan by picking Loan A—9% on the principal, compared to 10%. A low APR means a lower cost of borrowing overall, and lower monthly payments.
Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.
Key takeaways. Your credit card APR can go up if the prime rate changes, you paid your credit card bill late, your intro APR offer ended or your credit score dropped. If your APR increases, you can work on paying down your balance or transfer your balance to a card with a low or 0 percent intro APR offer.
| Credit score | Average loan interest rate |
|---|---|
| 720–850 | 10.73%-12.50% |
| 690–719 | 13.50%-15.50% |
| 630–689 | 17.80%-19.90% |
| 300–629 | 28.50%-32.00% |
The average personal loan interest rate is 22.39%. That's based on four weeks of data from 18 lenders and the rates they quoted to approximately 192,000 potential borrowers between Mar. 1–31, 2024.
Is 8% bad on a car loan?
Such rates have pushed vehicle loans closer to what's commonly considered high-interest debt — generally, any debt with an interest rate higher than 6% to 8%. If the interest rate on your auto loan is within that range, or exceeds it, here's why it might be a smart move to work toward paying it off early.
The interest rate on a $5,000 loan from a major lender is usually around 6.4% to 35.99%. It's difficult to pinpoint the exact interest rate that you'll get for a $5,000 loan since lenders take many factors into account when calculating your interest rate, such as your credit score and income.
Personal loan rates are so high because the Federal Reserve has increased its target interest rate 11 times since early 2022 in response to high inflation. The interest rates on personal loans tend to go up when the Fed raises its rate.
Rising interest rates have no direct impact on credit scores but they can affect factors that influence scores, such as your total outstanding debt and monthly payment requirements for credit cards and loans with adjustable interest rates.
- HDFC Bank Personal Loan. 10.50% p.a. onwards.
- ICICI Bank Personal Loan. 10.50% p.a. onwards.
- Bajaj Finserv Personal Loan. 13.00% p.a. onwards.
- Fullerton India Personal Loan. ...
- IndusInd Bank Personal Loan. ...
- Kotak Personal Loan. ...
- Standard Chartered Personal Loan. ...
- Cent Personal Loan (Central Bank of India)
- Pay your credit card bill in full every month.
- Consolidate debt with a balance transfer credit card.
- Be strategic about major purchases.
- Use a debt repayment method.
- Make multiple credit card payments per month.
- Tap into savings to pay down debt.
- Consider a personal loan.
The annual percentage rate (APR) is the cost of borrowing on a credit card. It refers to the yearly interest rate you'll pay if you carry a balance, plus any fees associated with the card. APR often varies by card. For example, you may have one card with an APR of 9.99% and another with an APR of 14.99%.
The APR on a credit card is an annualized percentage rate that is applied monthly. If the advertised APR on a credit card is 19%, for example, then an interest rate of 1.58% will be imposed on the outstanding balance each month. As mentioned, any given credit card may come with several different APRs attached.
An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.
| Credit Score | New Car Loan | Used Car Loan |
|---|---|---|
| 700-749 | 12.65% | 12.90% |
| 600-699 | 17.84% | 18.09% |
| 451-599 | 22.56% | 22.81% |
| 450 or lower | 21.40% | 21.65% |
What interest rate can I get with a 700 credit score for a car?
| Credit score | Average APR, new car | Average APR, used car |
|---|---|---|
| Prime: 661-780. | 7.01%. | 9.73%. |
| Nonprime: 601-660. | 9.60%. | 14.12%. |
| Subprime: 501-600. | 12.28%. | 18.89%. |
| Deep subprime: 300-500. | 14.78%. | 21.55%. |
The APR you receive is based on your credit score – the higher your score, the lower your APR. A good APR is around 22%, which is the current average for credit cards. People with bad credit may only have options for higher APR credit cards around 30%. Some people with good credit may find cards with APR as low as 16%.
Is There a Maximum Credit Card APR? There is no federal law limiting the interest credit card companies can charge in general. Credit card interest rates are capped at 36% for active-duty military service members and their covered dependents under the Military Lending Act.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
However, with a 718 credit score, you should qualify for rates on-par with national averages. Also, even though your score qualifies you for a mortgage, it's important to know that the lower your score is, the stronger the rest of your qualifications are generally expected to be.
