Consumers with credit scores below 601 tend to pay interest rates that are 17% or more for used cars, astronomically high interest rates that make cars harder to afford, and that make it more likely that a car will ultimately get repossessed.
“A 17% interest rate is high for people with credit scores in the 700s. But remember that a credit score isn't the only determinant of your rate. Other factors include: Debt-to-income ratio.
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 a good APR for a car loan with my credit score and desired vehicle? If you have excellent credit (750 or higher), the average auto loan rates are 5.07% for a new car and 5.32% for a used car. If you have good credit (700-749), the average auto loan rates are 6.02% for a new car and 6.27% for a used car.
A high APR (“annual percentage rate”) car loan is one that charges higher-than-average interest rates. The legal limit for car loans is around 16% APR, but you will find lenders that get away with charging rates of 25% or more.
A 15% APR on a car loan is astronomically high. At this level, most financial experts would agree that your money and time are better spent fixing your credit than adding more debt in the form of a car loan.
Car loan interest rates should not exceed 25%. But because car loan rates vary, what might be too much interest on a car loan for one person might actually be a very low rate for another. Car loan APRs range from 0% to 25% or higher since they are largely determined by your credit score.
Interest of 12% is really high, but since you've already bought the car, you can make your payments on time for six to 12 months and then refinance at a lower rate. “
What interest rate can I get with a 700 credit score for a car? Having a 700 credit score puts you in the “prime” category for borrowing. According to Experian, the average rates for this category are 3.51% for new-car loans and 5.38% for used-car loans.
A 10% APR is not good for auto loans. APRs on auto loans tend to range from around 4% to 10%, depending on whether you buy new or used.
Generally, a good interest rate for a personal loan is one that's lower than the national average, which is 9.41%, according to the most recently available Experian data.
From 2017 through 2020, the average ranged from as low as 4.42% to 5.5%. If your interest is around those averages or lower, then it's probably a good rate.
“It never hurts to shop around for car loan rates, just as you would with car insurance. But 2.49% for 48 months sounds like a pretty solid deal. My advice is to sign the paperwork on that deal before you let it get away. It's unlikely you'll be able to find a better rate anywhere else.
According to Experion, having a 705 credit score is considered a good score. A 705 credit score is typically good enough for people to qualify for decent interest rates on loans, home mortgages, and car loans.
Paying off a car loan early can save you money — provided there aren't added fees and you don't have other debt. Even a few extra payments can go a long way to reducing your costs. Keep your financial situation, monthly goals and the cost of the debt in mind and do your research to determine the best strategy for you.
In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.
A 20% APR is not good for auto loans. APRs on auto loans tend to range from around 4% to 10%, depending on whether you buy new or used.
A credit card APR below 10% is definitely good, but you may have to go to a local bank or credit union to find it. The Federal Reserve tracks credit card interest rates, and an APR below the average would also be considered good.
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.
“The Federal Reserve raising interest rates this year is just one factor that's likely going to make buying a car more expensive.” The combined factors of the chip shortage and the pandemic caused sky-high prices for new and used vehicles through 2021 and into 2022.
For used vehicles, the average interest rate can range from 3.61% APR with Super Prime to 19.87% for Deep Subprime. If you can get a rate under 6% for a used car, this is likely to be considered a good APR.