Is 12% a good rate for personal loan

Quick And Easy Personal
Loans Up To $2500

By CreditNinja
Modified on June 18, 2023

The interest rate for a personal loan is dependent on several varying factors, so determining whether 12% is a good rate is not quite so simple. Your credit score and the term length of the loan will have a significant impact on the interest rate you may qualify for. A better credit score will enable you to access lower and more competitive interest rates when applying for personal loans. What counts as a “good rate” on a personal loan varies considerably based on the borrower’s creditworthiness and financial stability as well as the lender.

A good indicator of what interest rate you should be looking to get from a lender of personal loans is the average rate for each credit score classification. The interest rate could be a little higher or lower depending on the lender or other qualifying factors like proof of income. The average interest rate on a personal loan for a borrower with excellent credit within the range of 720 and 850 points is between 10% and 12.5%. For a good credit score between 690 and 719 points, the average rate is 13% – 16%. 

The lower the borrower’s credit score is, the higher the interest rates become to compensate for the increased risk the lender takes on. A fair credit score of 630 to 689 points has an average interest rate of around 17.5% to 20%. And finally, poor credit scores under 629 points have an average interest rate for personal loans of 28% to 32%. In most circumstances, a 12% interest rate on a personal loan definitely qualifies as a good rate unless the borrower has nearly perfect credit.

To guarantee that you will be able to qualify for an interest rate near 12%, you will need to have a good to excellent credit score of over 700 points. Improving your credit score is not necessarily something that you can do overnight. It takes effort, consistency, and some patience. Some of the best things you can do to boost your credit score include making on-time payments, reducing your credit utilization ratio, and taking a break from applying for new credit for a while to pause new hard inquiries. 

Loan Application
Can I get a personal loan with a credit score of 500
Is 12% a good rate for personal loan
Which bank gives personal loan easily
Is a personal loan taxable income
What is a personal signature loan
Can I get a business loan with my ein number
Is a $5,000 loan hard to get
What do you need for a personal loan
Can I get a personal loan without proof of income
Can I get a loan with no credit
What is the minimum credit score for a personal loan
Can you get a personal loan completely online
Are there any payday loans that don’t do credit checks
Do all payday loans use teletrack
How many payday loans can you get in one day
How many payday loans can you have in iowa
How do I avoid loan origination fees
Mortgage refinancing with bad credit
What is the minimum to get a credit card consolidation loan
What are credit card consolidation loan interest rates going for
What is the interest rate on debt consolidation loans
Why debt consolidation loans are bad
What is a fair interest rate for debt consolidation loans
When applying for a loan which type is better, credit card refinancing or debt consolidation
Where To Get an $800 Loan, No Credit Check, Safe and Secure
How can I get a $500 loan with no credit check
How to get a debt consolidation loan with poor credit and existing loans
How hard is it to get a credit card consolidation loan
How to answer the questions they ask when applying for a credit card consolidation loan
Where can I get the best loan for a credit card consolidation
When you get a consolidation loan and pay off credit cards does this cancel the card
Do you have to close your credit card accounts when you get a debt consolidation loan
How to get a credit card consolidation loan with a low credit score
Mortgage refinancing with bad credit

Quick And Easy Personal Loans Up To $2500*