Is an APR of 6% good?

Asked by: Dr. Claire Kling  |  Last update: February 2, 2026
Score: 4.2/5 (69 votes)

Generally, a good APR for a car loan might look something like this: Excellent Credit (750+): 3% or lower for new cars, 4% or lower for used cars. Good Credit (700-749): 4-5% for new cars, 5-6% for used cars. Fair Credit (650-699): 6-7% for new cars, 7-8% for used cars.

Is 6% interest rate high?

A “good” mortgage rate is different for everyone. In today's market, a good mortgage interest rate can fall in the high-6% range, depending on several factors, such as the type of mortgage, loan term, and individual financial circumstances.

What is an acceptable APR rate?

According to the Service Quality Measurement (SQM) Group , the industry standard for a good FCR rate falls between 70 and 79 percent, which means about 30 percent of tickets take more than one interaction to resolve.

What APR rate is too 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.

What is a really good APR rate?

To determine if an APR is good or not, look at the average rates for people with the same credit score as you. For someone with a good or very good credit score, an APR of 20% could be good, while a 12% APR may be good for someone with an excellent score. If your score is lower, an APR of 25% could be considered good.

Car Loans - What's the difference between an Interest Rate & APR?

23 related questions found

Is 6% a good APR?

For used vehicles, the average interest rate can range from 7.13% APR with Super Prime to 21.55% for Deep Subprime. If you can get a rate under 6% for a used car, this is likely to be considered a good APR.

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.

What is a bad percentage of APR?

Car Loan APRs by Credit Score

Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. 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.

Is 7% a good rate for a personal loan?

A good personal loan interest rate is typically one that's lower than the national average rate, which is 12.17% as of Q3 2023. Because interest rates can vary based on a number of factors, including economic conditions, that average can fluctuate over time.

Is an APR of 8% good?

Generally, a good APR for a car loan might look something like this: Excellent Credit (750+): 3% or lower for new cars, 4% or lower for used cars. Good Credit (700-749): 4-5% for new cars, 5-6% for used cars. Fair Credit (650-699): 6-7% for new cars, 7-8% for used cars.

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.

What is the best way to loan money?

The best way to loan money to family, friends, or businesses
  • Get it in writing! When lending money, a written Loan Agreement or Promissory Note is your best friend. ...
  • Choose an appropriate amount of interest. ...
  • Set an appropriate repayment timeline. ...
  • Consider asking for collateral or a Deed of Trust.

Who has a 6% interest rate?

Benefits of 6% interest savings accounts

Currently, there's only two accounts that pay 6% APY — Digital Federal Credit Union's savings account and Boeing Employees' Credit Union's savings account — and they only pay 6.17% APY on a small portion of your balance.

Is 6% good for a mortgage?

With that in mind, getting a rate in the mid to low 6% range is pretty good, according to Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage. But affordability is relative to your overall financial situation.

What is the 6 interest rate rule?

Creditors must reduce the interest rate on debts to 6% for liabilities incurred before you enter active duty. If the debt is a mortgage, the reduced rate extends for one year after active military service.

Is a 6% loan bad?

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.

How much is a $20,000 loan for 5 years?

A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.

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.

What is a good credit score?

There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.

Is APR monthly or yearly?

For credit cards, the interest rates are typically stated as a yearly rate. This is called the annual percentage rate (APR).

How much would a $5000 personal loan cost a month?

The monthly payment on a $5,000 loan ranges from $68 to $502, depending on the APR and how long the loan lasts. For example, if you take out a $5,000 loan for one year with an APR of 36%, your monthly payment will be $502.

Does Affirm offer 0 APR?

Affirms offers up to 36-month payment programs at a rate of 0% APR or between 10-36% APR based on customers' credit. With no fees or compounding interest, what you see is what you pay.