A 20% APR is not good for mortgages, student loans, or auto loans, as it’s far higher than what most borrowers should expect to pay and what most lenders will even offer. A 20% APR is reasonable for personal loans and credit cards, however, particularly for people with below-average credit. You still shouldn’t settle for a rate this high if you can help it, though.
20% Is a Good APR For:
Credit cards
A 20% APR is reasonable but not ideal for credit cards. The average APR on a credit card is 22.75%.
Personal loans
A 20% APR is decent for personal loans, though it is far from the lowest rate available. Personal loan APRs tend to range from around 4% to 36%, and the rate you can get depends on factors such as your credit score, income, and current debt obligations, as well as the lender you choose.
20% Is NOT a Good APR For:
Mortgages
A 20% APR is very expensive for a mortgage. The average 30-year fixed mortgage rate is around 3%.
Student loans
A 20% APR is not good for student loans. The rates on federal student loans tend to be around 3% to 5%. Private student loans’ rates range from 1% to 12%.
Auto loans
A 20% APR is not good for auto loans. APRs on auto loans tend to range from around 4% to 10%, depending on whether you buy new or used.
This answer was first published on 05/13/21 and it was last updated on 10/19/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.