Lenders group borrowers into score bands and set a price for each. The published range on a loan, such as 7.49% to 19.99%, describes the best and worst outcomes. Where you land depends on your score, income, existing debt and the loan itself.
The bands most lenders use
Scores of 720 and above are generally treated as excellent, 690 to 719 as good, 630 to 689 as fair, and anything below that as limited. The exact cutoffs vary by lender and product, which is why the same score can qualify for the best rate at one lender and the middle of the range at another.
A small move can matter
On a $25,000, five-year loan, the difference between a 9% and a 13% APR is about $3,000 in interest over the life of the loan. Moving up a tier before you borrow, by paying down revolving balances or correcting report errors, is often worth waiting a month or two for.
What moves a score fastest
Payment history and credit utilization carry the most weight. Paying cards down below 30% of their limits, and ideally below 10%, often helps within one or two statement cycles. Disputing inaccurate negative items can help too, but it takes longer.
Put it into practice
Compare real offers by total cost, or test a payment first.
This guide is for general information and is not financial, legal or tax advice.