Rate Benchmarks
Is My Interest Rate Good? How to Know in 30 Seconds
The 30-second rate check
You don't need to be a financial expert. Three steps:
Step 1: Know your credit score
If you don't know it, check it free on Credit Karma. Takes 2 minutes. You can't evaluate a rate offer without this number.
Step 2: Look up the average for your score range
Use our Rate Benchmark Tool or check our guides: personal loan rates, auto loan rates.
Step 3: Compare
- Your rate is below the average: Great deal. Take it (after checking fees).
- Your rate is within the average range: Fair. You could try negotiating or shopping one more lender.
- Your rate is 2-3+ points above average: Shop around. You can do better.
- Your rate is above 36% APR: Predatory. Do not accept. Read why.
Remember: Compare APR, not just the interest rate. APR includes fees and is the true cost of borrowing. Learn the difference →
Why your rate might be higher than average
If your offer is above average for your credit score, common reasons include:
- High debt-to-income ratio
- Thin credit file (short history)
- Recent delinquencies or collections
- Unstable income or short employment history
- You're at a lender that doesn't compete on rate for your profile
Most of these are fixable. Visit CreditBoostTips.com for free guides on improving your credit score before applying.