Is 35 apr high for a personal loan?

Asked by: Laverna Mosciski  |  Last update: June 19, 2025
Score: 4.5/5 (8 votes)

No, 35% is not a good personal loan rate. An APR of 35% is a lot higher than the national average personal loan rate, and even people with bad credit can find lower rates by comparing personal loan offers and getting pre-qualified before applying.

Is an APR of 35% high?

A high APR for a credit card is one that's above the national average. Currently, the average APR is around 25%, so an APR that exceeds that is considered high.

Is 35% high interest?

The trouble is that 35% can also be considered a high interest loan. Even at 35%, you'd throw away about $2,210 in interest that you do not need to pay.

Why is my APR so high on a personal loan?

Personal loan rates are much higher because they are most often unsecured loans. This essentially means that the lender has no means such as security or collateral to fall back on in case a borrower defaults on payments.

How to avoid APR on a personal loan?

In order to get the best rates and fees — and a lower or 0% APR — you'll need to have a good or excellent credit score. The good news: There are steps you can take to raise your credit score. Start by paying at least your minimum due on time every month, keeping your balances and disputing credit report errors.

The Pros and Cons of Personal Loans

29 related questions found

Why is my APR so high with good credit?

Even people with good credit scores make mistakes, and a bank may charge a penalty APR on your credit card without placing a negative mark on your credit report. Penalty APRs typically increase credit card interest rates significantly due to a late, returned or missed payment.

Is 35% interest on a loan bad?

No, 35% is not a good personal loan rate. An APR of 35% is a lot higher than the national average personal loan rate, and even people with bad credit can find lower rates by comparing personal loan offers and getting pre-qualified before applying.

How much is 26.99 APR on $3000?

How much is 26.99 APR on $3,000? An APR of 26.99% on a $3,000 balance would cost $67.26 in monthly interest charges.

Is 34% APR legal?

13 states cap the APR between 36% and 60%. 13 states cap the APR at more than 60%. Three states—Idaho, Utah, and Wisconsin—require only that the loan not be “unconscionable” (a legal principle that bans terms that shock the conscience). Two states—Delaware and Missouri—impose no cap at all.

How to pay off a personal loan early?

  1. Make bi-weekly payments. Instead of making monthly payments toward your loan, submit half-payments every two weeks. ...
  2. Round up your monthly payments. ...
  3. Make one extra payment each year. ...
  4. Refinance. ...
  5. Boost your income and put all extra money toward the loan.

What does 35 APR mean?

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%.

What is a good APR for a personal loan?

A good interest rate on a personal loan is anything lower than the market's average rate. But a good rate for you depends on your credit score. For example, if you have excellent credit, a rate below 11 percent would be considered good, while 12.5 percent would be less competitive.

Do I pay APR if I pay on time?

An APR is the interest rate you are charged for borrowing money. In the case of credit cards, you don't get charged interest if you pay off your balance on time and in full each billing cycle. Card issuers express this rate annually, but to find your monthly interest rate, simply divide by 12.

How much is the monthly payment for a $60000 personal loan?

The monthly payment on a $60,000 loan ranges from $820 to $6,028, depending on the APR and how long the loan lasts. For example, if you take out a $60,000 loan for one year with an APR of 36%, your monthly payment will be $6,028.

Is APR charged monthly?

Your credit card's APR is the interest rate you are charged on any unpaid credit card balances you have every month. Your monthly statement may break down your credit card APR yearly, but you can break it down to a monthly APR yourself.

How much would a $20,000 loan cost per month?

The monthly payment on a $20,000 loan ranges from $273 to $2,009, depending on the APR and how long the loan lasts. For example, if you take out a $20,000 loan for one year with an APR of 36%, your monthly payment will be $2,009.

What is the highest legal interest rate on a personal loan?

We'll kind of go a little bit more in depth on how that's calculated based on your interest rate and points on a few slides. But yeah, so big picture California says 10%, that's what you can charge on a loan and if you exceed 10%, you have a usury problem.

How much interest on a loan is too much?

However, the rate for consumer loans is capped at 12 percent unless they are “supervised loans,” which includes credit card debt, made by a “supervised lender.” These loans are capped at 36 percent.

How do I get my APR lowered?

How can I lower my credit card APR?
  1. Paying your bills on time.
  2. Keeping your balances low.
  3. Paying off any debt in a timely manner.
  4. Diversifying your credit mix if possible.
  5. Keeping overall credit utilization low.
  6. Tools like Chase Credit Journey can help you understand your credit score and help you improve it.

What is considered a high APR for a loan?

Look for an APR below 36%, which consumer advocates agree is the highest rate an affordable loan can have, and make sure the monthly payments fit comfortably in your budget.

What can I do if my APR is too high?

8 Ways to Combat High APR Problems
  1. What is high APR and how can you lower it? ...
  2. #1: Negotiate lower interest rates. ...
  3. #2: Target your debt by APR. ...
  4. #3: Devote all extra cash to debt elimination. ...
  5. #4: Set up a repayment plan with the creditor. ...
  6. #5: Consolidate the debt with a personal loan.