Helen Tippell
Digital Copywriter
What's a good interest rate for a loan?
28 July 2026
12 min read
Contents
What is an interest rate and APR?What does representative APR mean?What's a good interest rate for a loan?What affects a personal loan rate?How loan amount and term affect total interest paidFixed vs variable interest rates on loansHow can you get a lower interest rate?How to compare personal loansHow does a personal loan affect your credit score and report?What else should you consider before taking out a personal loan?Frequently asked questions about loan interest ratesWhat APR range should you expect on a personal loan?Interest rates and APRs can be confusing. Understanding what they mean when you want to take out a loan can help you make more confident, informed choices.
What is an interest rate and APR?
APR stands for Annual Percentage Rate. When you take out a loan, you repay the amount borrowed plus interest. Interest is how lenders make a profit, and this is where APR comes in. It is made up of the interest rate and any other charges you may have to pay, such as an arrangement fee.
Arrangement fee = a charge from the lender for processing the loan.
What does representative APR mean?
When you are looking for a loan, you will often see it advertised with a fixed interest rate and a representative APR. This is the typical rate offered to the majority of borrowers who are accepted for that product.
A representative APR is the rate that a lender reasonably expects at least 51% of customers who take out the product through that promotion to receive. Your own rate may be higher or lower.
Representative example
If you borrow £10,000 over 60 months at a representative APR of 15.4%:
Monthly repayments = £240
Total amount repayable = £14,400
In this example there are no additional fees, so the interest rate and the representative APR are the same. Where a loan does include fees, the APR will be higher than the interest rate, because it reflects those fees as well.
Learn more: The truth about APRs and how to find out the rate you'll get before applying.
What's a good interest rate for a loan?
There is no single definition of a "good" interest rate, but as a general rule, the lower the rate, the less overall interest you will pay across the life of the loan. The rate you are offered will depend on a range of factors, including your credit score and history.
Your ClearScore credit score is provided by Equifax and grouped into bands that range from lower to higher scores. A higher score generally reflects a stronger credit history, suggesting you have managed previous credit accounts well, such as repaying what you owe on time and in full. However, lenders also consider other factors, including your existing borrowing and whether repayments are affordable for you. A higher credit score does not guarantee acceptance or that you will receive the advertised interest rate.
Lenders will typically look at a combination of factors when deciding what rate to offer, including your income, the size of the loan you want, and your overall credit history. All of this helps them assess whether you can comfortably make the monthly repayments.
What affects a personal loan rate?
Several things can influence the interest rate you are offered on a personal loan. Your credit score plays a significant role because the information behind it tells lenders how reliably you have managed debt in the past.
As well as the information in your credit report, such as payment history, credit mix, and credit utilisation, lenders may also consider the following when assessing whether you can afford the repayments.
Your income
Having a consistent and steady income can strengthen your case as a borrower. It suggests you have the means to meet regular financial commitments, which lenders view positively when assessing affordability.
Your debt profile
Lenders may look at your existing debts alongside your income and outgoings. This is sometimes referred to as your debt-to-income ratio. If a significant portion of your income is already committed to other debts, lenders may consider you a higher risk, which can affect the rate you are offered.
The size of the loan
The larger the loan, the more interest you will pay overall, because interest is calculated as a percentage of the amount borrowed. Lenders will also want to be confident that you can repay the full amount, including interest, over the agreed term.
The repayment term
Choosing a shorter repayment term means higher monthly payments but less interest paid overall. A longer term lowers your monthly payments but increases the total cost of the loan. Lenders will consider whether the monthly repayment amount is affordable for you based on your circumstances.
How loan amount and term affect total interest paid
It can be difficult to judge whether an interest rate is good value without seeing how it translates into real repayment figures. The table below uses a single representative APR of 15.4% to show how the total cost of a loan changes depending on how much you borrow and over how long. All figures are illustrative and assume no additional arrangement fees.
Loan amount | Term (months) | Monthly repayment | Total interest paid | Total repayable |
|---|---|---|---|---|
| Loan amount £5,000 | Term (months) 24 | Monthly repayment £243 | Total interest paid £832 | Total repayable £5,832 |
| Loan amount £5,000 | Term (months) 36 | Monthly repayment £174 | Total interest paid £1,264 | Total repayable £6,264 |
| Loan amount £5,000 | Term (months) 60 | Monthly repayment £120 | Total interest paid £2,200 | Total repayable £7,200 |
| Loan amount £10,000 | Term (months) 24 | Monthly repayment £486 | Total interest paid £1,664 | Total repayable £11,664 |
| Loan amount £10,000 | Term (months) 36 | Monthly repayment £348 | Total interest paid £2,528 | Total repayable £12,528 |
| Loan amount £10,000 | Term (months) 60 | Monthly repayment £240 | Total interest paid £4,400 | Total repayable £14,400 |
| Loan amount £15,000 | Term (months) 24 | Monthly repayment £729 | Total interest paid £2,496 | Total repayable £17,496 |
| Loan amount £15,000 | Term (months) 36 | Monthly repayment £522 | Total interest paid £3,792 | Total repayable £18,792 |
| Loan amount £15,000 | Term (months) 60 | Monthly repayment £360 | Total interest paid £6,600 | Total repayable £21,600 |
The key takeaway is straightforward: a shorter repayment term means you pay considerably less interest overall, but your monthly outgoings will be higher. For example, borrowing £10,000 over two years rather than five saves you roughly £2,736 in interest at this representative APR - but your monthly repayment doubles. The right balance depends on what you can comfortably afford each month without stretching your budget too thin.
Fixed vs variable interest rates on loans
When comparing personal loans, you will usually encounter two types of interest rate: fixed and variable. Understanding the difference can help you choose the right product for your circumstances and budget.
What is a fixed-rate loan?
A fixed-rate loan locks your interest rate for the entire repayment term. Your monthly repayments stay the same from the first month to the last, regardless of what happens to broader interest rates in the economy. Most UK personal loans are offered on a fixed-rate basis, which makes budgeting straightforward because you know exactly how much you will pay each month and how much the loan will cost in total.
What is a variable-rate loan?
A variable-rate loan has an interest rate that can go up or down during the repayment term. The rate is usually linked to an external benchmark, such as the Bank of England base rate, or set at the lender's discretion. This means your monthly repayments could change, making it harder to predict the total cost of borrowing. Variable rates are less common for personal loans in the UK but are frequently seen with overdrafts and some credit cards.
Which is better for you?
APR on loansWith a fixed rate, your scheduled repayments stay the same for the whole term, so the total cost is known in advance. With a variable rate, the interest rate - and therefore your repayments - can rise or fall during the term, so the total cost is not fixed. Which type is appropriate depends on the terms of the specific agreement and your own circumstances.
How can you get a lower interest rate?
You cannot negotiate a lender's advertised rate directly, but there are steps you can take to put yourself in the strongest possible position before applying.
Compare your options before applying, so you can see what different lenders are offering. You can see which loans may be available to you on ClearScore without affecting your credit score.
Check for early repayment charges (ERCs). If there are none, you may be able to pay your loan off early and reduce the total interest you pay.
Consider a shorter loan term. Paying higher monthly amounts over fewer months can reduce the overall cost of the loan, provided the repayments are affordable for you.
Learn more: How to get the best rate on a loan.
How to compare personal loans
Comparing loans is a useful way to understand what is available to you. Before you start, it helps to have a clear idea of how much you want to borrow and over how many months you would like to repay it.
Searching for loans on ClearScore will leave a soft search on your credit report. Soft searches are not visible to lenders and will not affect your credit score, so you can compare as many loans as you like before deciding to apply. Checking your credit score on ClearScore will not affect it either.
How does a personal loan affect your credit score and report?
When you formally apply for a personal loan, the lender will carry out a hard search, which will appear on your credit report and may temporarily affect your credit score. Provided you keep up with repayments responsibly, the impact is generally short-term.
It is worth avoiding applying for multiple credit products in a short space of time. Several hard searches appearing close together can make lenders more cautious about your application.
What else should you consider before taking out a personal loan?
Before applying, it is important to make sure a personal loan is the right choice for your situation. A loan is a form of debt that must be repaid with interest. You should carefully consider whether you can afford the monthly repayments before you borrow. Missing payments could harm your credit rating and make credit harder or more expensive to access in the future.
ClearScore is a credit broker, not a lender. We provide your credit score and report for free using data from Equifax, along with insights designed to help you understand and take control of your financial health.
Understanding what appears on your credit report can help you make more informed financial decisions. Checking your report regularly, correcting any errors promptly, and building positive financial habits over time may help improve your creditworthiness, though outcomes will depend on your individual circumstances.
Ready to see what is on your credit report? Check your free credit score and report with ClearScore. It takes just a few minutes and could be a useful first step towards better financial wellbeing.
Frequently asked questions about loan interest rates
Is 13.9% APR good for a personal loan?
A rate of 13.9% APR is not unusual and falls within a typical range for borrowers with a fair to good credit history. Whether it represents good value depends on your individual circumstances. If your credit score is in the lower bands - such as On good ground (520-604) or Moving on up (410-519) - 13.9% may be a reasonable offer. However, if you have a strong credit history and a high score, you may be able to find lower rates by comparing options. It is always worth checking what other lenders are offering before committing, as even a few percentage points can make a noticeable difference to the total amount you repay.
What APR is too high for a personal loan?
There is no official threshold, but APRs above 25% to 30% are generally considered expensive for a personal loan. Rates at this level are typically offered to borrowers with lower credit scores or limited credit histories, where lenders perceive a higher risk of missed payments. If you are quoted a rate in this range, it may be worth pausing to consider whether the borrowing is essential and whether taking steps to improve your credit score first could help you access a more competitive deal later.
Does checking my eligibility affect my credit score?
No. When you search for loans on ClearScore, only a soft search is recorded on your credit report. Soft searches are not visible to other lenders and do not affect your credit score. This means you can compare as many options as you like without any impact. A hard search only takes place when you formally submit a full application to a lender.
Can I get a lower rate if I borrow more?
In some cases, yes. Many UK lenders offer their most competitive rates on loans within a mid-range bracket, often between £7,500 and £15,000. Borrowing below or above this range may result in a higher APR. However, you should never borrow more than you need simply to access a lower rate - the total amount of interest you pay will still increase with a larger loan, even if the percentage rate is lower. Always base your borrowing on what you can comfortably afford to repay.
What APR range should you expect on a personal loan?
Personal loan APRs in the UK typically range from around 3% to over 30%, depending on your creditworthiness, the amount you borrow, and the lender. Because rates are tailored to individual circumstances, the APR you are offered may differ significantly from the one advertised. The table below gives a general indication of the APR ranges you might see based on your ClearScore credit-score band. These are illustrative only and should not be taken as guaranteed rates.
ClearScore credit-score band | Indicative APR range | What to expect |
|---|---|---|
| ClearScore credit-score band Soaring high (score 725+) | Indicative APR range Around 3% - 7% | What to expect You may be offered rates at or near the lowest advertised, though this is not guaranteed. Lenders generally view borrowers in this band as lower risk, which may be reflected in more competitive pricing. |
| ClearScore credit-score band Looking bright (score 605-724) | Indicative APR range Around 7% - 11% | What to expect You may still be eligible for competitive loan products, though rates may be slightly above the very best headline deals. The rate you are offered will depend on your individual circumstances. |
| ClearScore credit-score band On good ground (score 520-604) | Indicative APR range Around 11% - 18% | What to expect You may still qualify for many mainstream loan products, though rates will typically be higher than the headline deals reserved for top-scoring applicants. |
| ClearScore credit-score band Moving on up (score 410-519) | Indicative APR range Around 18% - 25% | What to expect Fewer lenders may accept your application, and those that do are likely to charge higher rates to account for the perceived additional risk. |
| ClearScore credit-score band Let's start climbing (score 0-409) | Indicative APR range 25% and above | What to expect Options may be limited, and the rates available are likely to be significantly higher. It may be worth focusing on building your credit score before applying. |
So, what is a good APR for a loan? As a rough guide, anything below around 7% is generally considered competitive for a UK personal loan, while rates between 7% and 15% are fairly typical for borrowers with solid credit histories. If you have been offered a rate of around 11% APR, that sits comfortably within the mid-range and may reflect a good credit profile without being in the very top band. A rate of 13% or 13.9% APR is still within a reasonable range for many borrowers - it suggests there may be room to improve your score for a better deal in future, but it is not unusually high for someone in the On good ground (520-604) to Moving on up (410-519) range. Rates above 20% are generally on the expensive side and are worth reconsidering unless no better options are available to you.
Keep in mind that these ranges shift over time as the Bank of England base rate changes and lenders adjust their products. Always compare current offers before making a decision.
ClearScore Technology Ltd. is an independent credit broker, not a lender. We will receive a commission if you take out a product, but we never rank offers based on that.
Helen Tippell
Digital Copywriter
28 July 2026
12 min read
Contents
What is an interest rate and APR?What does representative APR mean?What's a good interest rate for a loan?What affects a personal loan rate?How loan amount and term affect total interest paidFixed vs variable interest rates on loansHow can you get a lower interest rate?How to compare personal loansHow does a personal loan affect your credit score and report?What else should you consider before taking out a personal loan?Frequently asked questions about loan interest ratesWhat APR range should you expect on a personal loan?Meet the author
Digital Copywriter
Helen Tippell
Helen's our resident Digital Copywriter. She makes personal finance easier to understand so you can be confident about your credit choices.
What's a good interest rate for a loan?
Helen Tippell
Digital Copywriter
28 July 2026
12 min read
Contents
What is an interest rate and APR?What does representative APR mean?What's a good interest rate for a loan?What affects a personal loan rate?How loan amount and term affect total interest paidFixed vs variable interest rates on loansHow can you get a lower interest rate?How to compare personal loansHow does a personal loan affect your credit score and report?What else should you consider before taking out a personal loan?Frequently asked questions about loan interest ratesWhat APR range should you expect on a personal loan?Interest rates and APRs can be confusing. Understanding what they mean when you want to take out a loan can help you make more confident, informed choices.
What is an interest rate and APR?
APR stands for Annual Percentage Rate. When you take out a loan, you repay the amount borrowed plus interest. Interest is how lenders make a profit, and this is where APR comes in. It is made up of the interest rate and any other charges you may have to pay, such as an arrangement fee.
Arrangement fee = a charge from the lender for processing the loan.
What does representative APR mean?
When you are looking for a loan, you will often see it advertised with a fixed interest rate and a representative APR. This is the typical rate offered to the majority of borrowers who are accepted for that product.
A representative APR is the rate that a lender reasonably expects at least 51% of customers who take out the product through that promotion to receive. Your own rate may be higher or lower.
Representative example
If you borrow £10,000 over 60 months at a representative APR of 15.4%:
Monthly repayments = £240
Total amount repayable = £14,400
In this example there are no additional fees, so the interest rate and the representative APR are the same. Where a loan does include fees, the APR will be higher than the interest rate, because it reflects those fees as well.
Learn more: The truth about APRs and how to find out the rate you'll get before applying.
What's a good interest rate for a loan?
There is no single definition of a "good" interest rate, but as a general rule, the lower the rate, the less overall interest you will pay across the life of the loan. The rate you are offered will depend on a range of factors, including your credit score and history.
Your ClearScore credit score is provided by Equifax and grouped into bands that range from lower to higher scores. A higher score generally reflects a stronger credit history, suggesting you have managed previous credit accounts well, such as repaying what you owe on time and in full. However, lenders also consider other factors, including your existing borrowing and whether repayments are affordable for you. A higher credit score does not guarantee acceptance or that you will receive the advertised interest rate.
Lenders will typically look at a combination of factors when deciding what rate to offer, including your income, the size of the loan you want, and your overall credit history. All of this helps them assess whether you can comfortably make the monthly repayments.
What affects a personal loan rate?
Several things can influence the interest rate you are offered on a personal loan. Your credit score plays a significant role because the information behind it tells lenders how reliably you have managed debt in the past.
As well as the information in your credit report, such as payment history, credit mix, and credit utilisation, lenders may also consider the following when assessing whether you can afford the repayments.
Your income
Having a consistent and steady income can strengthen your case as a borrower. It suggests you have the means to meet regular financial commitments, which lenders view positively when assessing affordability.
Your debt profile
Lenders may look at your existing debts alongside your income and outgoings. This is sometimes referred to as your debt-to-income ratio. If a significant portion of your income is already committed to other debts, lenders may consider you a higher risk, which can affect the rate you are offered.
The size of the loan
The larger the loan, the more interest you will pay overall, because interest is calculated as a percentage of the amount borrowed. Lenders will also want to be confident that you can repay the full amount, including interest, over the agreed term.
The repayment term
Choosing a shorter repayment term means higher monthly payments but less interest paid overall. A longer term lowers your monthly payments but increases the total cost of the loan. Lenders will consider whether the monthly repayment amount is affordable for you based on your circumstances.
How loan amount and term affect total interest paid
It can be difficult to judge whether an interest rate is good value without seeing how it translates into real repayment figures. The table below uses a single representative APR of 15.4% to show how the total cost of a loan changes depending on how much you borrow and over how long. All figures are illustrative and assume no additional arrangement fees.
Loan amount | Term (months) | Monthly repayment | Total interest paid | Total repayable |
|---|---|---|---|---|
| Loan amount £5,000 | Term (months) 24 | Monthly repayment £243 | Total interest paid £832 | Total repayable £5,832 |
| Loan amount £5,000 | Term (months) 36 | Monthly repayment £174 | Total interest paid £1,264 | Total repayable £6,264 |
| Loan amount £5,000 | Term (months) 60 | Monthly repayment £120 | Total interest paid £2,200 | Total repayable £7,200 |
| Loan amount £10,000 | Term (months) 24 | Monthly repayment £486 | Total interest paid £1,664 | Total repayable £11,664 |
| Loan amount £10,000 | Term (months) 36 | Monthly repayment £348 | Total interest paid £2,528 | Total repayable £12,528 |
| Loan amount £10,000 | Term (months) 60 | Monthly repayment £240 | Total interest paid £4,400 | Total repayable £14,400 |
| Loan amount £15,000 | Term (months) 24 | Monthly repayment £729 | Total interest paid £2,496 | Total repayable £17,496 |
| Loan amount £15,000 | Term (months) 36 | Monthly repayment £522 | Total interest paid £3,792 | Total repayable £18,792 |
| Loan amount £15,000 | Term (months) 60 | Monthly repayment £360 | Total interest paid £6,600 | Total repayable £21,600 |
The key takeaway is straightforward: a shorter repayment term means you pay considerably less interest overall, but your monthly outgoings will be higher. For example, borrowing £10,000 over two years rather than five saves you roughly £2,736 in interest at this representative APR - but your monthly repayment doubles. The right balance depends on what you can comfortably afford each month without stretching your budget too thin.
Fixed vs variable interest rates on loans
When comparing personal loans, you will usually encounter two types of interest rate: fixed and variable. Understanding the difference can help you choose the right product for your circumstances and budget.
What is a fixed-rate loan?
A fixed-rate loan locks your interest rate for the entire repayment term. Your monthly repayments stay the same from the first month to the last, regardless of what happens to broader interest rates in the economy. Most UK personal loans are offered on a fixed-rate basis, which makes budgeting straightforward because you know exactly how much you will pay each month and how much the loan will cost in total.
What is a variable-rate loan?
A variable-rate loan has an interest rate that can go up or down during the repayment term. The rate is usually linked to an external benchmark, such as the Bank of England base rate, or set at the lender's discretion. This means your monthly repayments could change, making it harder to predict the total cost of borrowing. Variable rates are less common for personal loans in the UK but are frequently seen with overdrafts and some credit cards.
Which is better for you?
APR on loansWith a fixed rate, your scheduled repayments stay the same for the whole term, so the total cost is known in advance. With a variable rate, the interest rate - and therefore your repayments - can rise or fall during the term, so the total cost is not fixed. Which type is appropriate depends on the terms of the specific agreement and your own circumstances.
How can you get a lower interest rate?
You cannot negotiate a lender's advertised rate directly, but there are steps you can take to put yourself in the strongest possible position before applying.
Compare your options before applying, so you can see what different lenders are offering. You can see which loans may be available to you on ClearScore without affecting your credit score.
Check for early repayment charges (ERCs). If there are none, you may be able to pay your loan off early and reduce the total interest you pay.
Consider a shorter loan term. Paying higher monthly amounts over fewer months can reduce the overall cost of the loan, provided the repayments are affordable for you.
Learn more: How to get the best rate on a loan.
How to compare personal loans
Comparing loans is a useful way to understand what is available to you. Before you start, it helps to have a clear idea of how much you want to borrow and over how many months you would like to repay it.
Searching for loans on ClearScore will leave a soft search on your credit report. Soft searches are not visible to lenders and will not affect your credit score, so you can compare as many loans as you like before deciding to apply. Checking your credit score on ClearScore will not affect it either.
How does a personal loan affect your credit score and report?
When you formally apply for a personal loan, the lender will carry out a hard search, which will appear on your credit report and may temporarily affect your credit score. Provided you keep up with repayments responsibly, the impact is generally short-term.
It is worth avoiding applying for multiple credit products in a short space of time. Several hard searches appearing close together can make lenders more cautious about your application.
What else should you consider before taking out a personal loan?
Before applying, it is important to make sure a personal loan is the right choice for your situation. A loan is a form of debt that must be repaid with interest. You should carefully consider whether you can afford the monthly repayments before you borrow. Missing payments could harm your credit rating and make credit harder or more expensive to access in the future.
ClearScore is a credit broker, not a lender. We provide your credit score and report for free using data from Equifax, along with insights designed to help you understand and take control of your financial health.
Understanding what appears on your credit report can help you make more informed financial decisions. Checking your report regularly, correcting any errors promptly, and building positive financial habits over time may help improve your creditworthiness, though outcomes will depend on your individual circumstances.
Ready to see what is on your credit report? Check your free credit score and report with ClearScore. It takes just a few minutes and could be a useful first step towards better financial wellbeing.
Frequently asked questions about loan interest rates
Is 13.9% APR good for a personal loan?
A rate of 13.9% APR is not unusual and falls within a typical range for borrowers with a fair to good credit history. Whether it represents good value depends on your individual circumstances. If your credit score is in the lower bands - such as On good ground (520-604) or Moving on up (410-519) - 13.9% may be a reasonable offer. However, if you have a strong credit history and a high score, you may be able to find lower rates by comparing options. It is always worth checking what other lenders are offering before committing, as even a few percentage points can make a noticeable difference to the total amount you repay.
What APR is too high for a personal loan?
There is no official threshold, but APRs above 25% to 30% are generally considered expensive for a personal loan. Rates at this level are typically offered to borrowers with lower credit scores or limited credit histories, where lenders perceive a higher risk of missed payments. If you are quoted a rate in this range, it may be worth pausing to consider whether the borrowing is essential and whether taking steps to improve your credit score first could help you access a more competitive deal later.
Does checking my eligibility affect my credit score?
No. When you search for loans on ClearScore, only a soft search is recorded on your credit report. Soft searches are not visible to other lenders and do not affect your credit score. This means you can compare as many options as you like without any impact. A hard search only takes place when you formally submit a full application to a lender.
Can I get a lower rate if I borrow more?
In some cases, yes. Many UK lenders offer their most competitive rates on loans within a mid-range bracket, often between £7,500 and £15,000. Borrowing below or above this range may result in a higher APR. However, you should never borrow more than you need simply to access a lower rate - the total amount of interest you pay will still increase with a larger loan, even if the percentage rate is lower. Always base your borrowing on what you can comfortably afford to repay.
What APR range should you expect on a personal loan?
Personal loan APRs in the UK typically range from around 3% to over 30%, depending on your creditworthiness, the amount you borrow, and the lender. Because rates are tailored to individual circumstances, the APR you are offered may differ significantly from the one advertised. The table below gives a general indication of the APR ranges you might see based on your ClearScore credit-score band. These are illustrative only and should not be taken as guaranteed rates.
ClearScore credit-score band | Indicative APR range | What to expect |
|---|---|---|
| ClearScore credit-score band Soaring high (score 725+) | Indicative APR range Around 3% - 7% | What to expect You may be offered rates at or near the lowest advertised, though this is not guaranteed. Lenders generally view borrowers in this band as lower risk, which may be reflected in more competitive pricing. |
| ClearScore credit-score band Looking bright (score 605-724) | Indicative APR range Around 7% - 11% | What to expect You may still be eligible for competitive loan products, though rates may be slightly above the very best headline deals. The rate you are offered will depend on your individual circumstances. |
| ClearScore credit-score band On good ground (score 520-604) | Indicative APR range Around 11% - 18% | What to expect You may still qualify for many mainstream loan products, though rates will typically be higher than the headline deals reserved for top-scoring applicants. |
| ClearScore credit-score band Moving on up (score 410-519) | Indicative APR range Around 18% - 25% | What to expect Fewer lenders may accept your application, and those that do are likely to charge higher rates to account for the perceived additional risk. |
| ClearScore credit-score band Let's start climbing (score 0-409) | Indicative APR range 25% and above | What to expect Options may be limited, and the rates available are likely to be significantly higher. It may be worth focusing on building your credit score before applying. |
So, what is a good APR for a loan? As a rough guide, anything below around 7% is generally considered competitive for a UK personal loan, while rates between 7% and 15% are fairly typical for borrowers with solid credit histories. If you have been offered a rate of around 11% APR, that sits comfortably within the mid-range and may reflect a good credit profile without being in the very top band. A rate of 13% or 13.9% APR is still within a reasonable range for many borrowers - it suggests there may be room to improve your score for a better deal in future, but it is not unusually high for someone in the On good ground (520-604) to Moving on up (410-519) range. Rates above 20% are generally on the expensive side and are worth reconsidering unless no better options are available to you.
Keep in mind that these ranges shift over time as the Bank of England base rate changes and lenders adjust their products. Always compare current offers before making a decision.
ClearScore Technology Ltd. is an independent credit broker, not a lender. We will receive a commission if you take out a product, but we never rank offers based on that.
Helen Tippell
Digital Copywriter
28 July 2026
12 min read
Contents
What is an interest rate and APR?What does representative APR mean?What's a good interest rate for a loan?What affects a personal loan rate?How loan amount and term affect total interest paidFixed vs variable interest rates on loansHow can you get a lower interest rate?How to compare personal loansHow does a personal loan affect your credit score and report?What else should you consider before taking out a personal loan?Frequently asked questions about loan interest ratesWhat APR range should you expect on a personal loan?Meet the author
Digital Copywriter
Helen Tippell
Helen's our resident Digital Copywriter. She makes personal finance easier to understand so you can be confident about your credit choices.