Interest rate ranges: how is your rate determined?
You may have seen personal or car loans advertised with an interest rate given as a range. So what are these ranges, what determines your rate and how can you get a better deal?

You may have seen personal or car loans advertised with an interest rate given as a range. So what are these ranges, what determines your rate and how can you get a better deal?
What are interest rate ranges on personal loans?
A personal loan interest rate range is simply the minimum and maximum interest rates that a lender may charge on one of its personal loan products. This means that if you successfully apply for a particular personal loan from a lender, you could be charged any interest rate in the advertised range for that product. The exact rate a lender charges typically depends on a borrower’s personal circumstances, including the details of their loan application.
How is your personal loan or car loan interest rate determined?
The interest rate you’ll be offered will generally be based on how much the lender trusts you to make loan repayments on time, which partly depends on your credit score. There may be other factors taken into consideration too, such as whether your personal loan will be secured or unsecured and if you have a guarantor, according to the Australian government’s Moneysmart website. National Australia Bank (NAB), for example, considers factors such as your credit history, information given on the application form and any details it has on file (for existing customers) in deciding the interest rate to charge personal loan customers. Whether you’re buying a car, want to consolidate debt or have other expenses, negotiating a better interest rate on your personal loan could save you money in the long run.
The comparison rates for car loans are based on credit of $30,000 and a term of 5 years, unsecured, unless otherwise stated.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
What is a credit rating or score?
Your credit rating (or credit score) is a numerical representation of your perceived trustworthiness as a borrower. It sums up a wide range of information on your lending, borrowing and bill-paying history into a single number. Lenders often use this information to help them decide if lending you money is worth the risk.
Get your free credit score check
What are the credit score bands?
Here’s a breakdown of the credit score ranges of three of Australia’s largest credit score providers: Equifax, Experian and Illion. A higher number means a better credit score, and a better credit score means you’re more likely to be perceived as trustworthy by lenders. A lower score, on the other hand, means that lenders may view you as risky, which in turn may result in you paying a higher interest rate, or not being approved for your preferred loan.
Equifax credit score bands
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Below average |
Average | Good | Very good |
Excellent | |
---|---|---|---|---|---|
Equifax score range |
0-459 | 460-660 | 661-734 | 735-852 | 853-1,200 |
Experian credit score bands
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Below average |
Fair | Good | Very good |
Excellent | |
---|---|---|---|---|---|
Experian score range |
0-549 | 550-624 | 625-699 | 700-799 | 800-1,000 |
Illion credit score bands
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Zero score |
A low score |
Room for improvement |
Good | Great | Excellent | |
---|---|---|---|---|---|---|
Illion score range |
0 | 1-299 | 300-499 | 500-699 | 700-799 | 800-1,000 |
Sources: Equifax, Experian and Illion.
How does my credit score affect interest rate ranges?
Depending on how a lender assesses your application, the interest rate range available to you for a personal loan may change. For example, a lender may group applicants using categories such as excellent, good, average and below average, letters such as A, B, C, D, or colours such as orange, blue and green. This differentiates borrowers based on criteria including their credit scores as part of the loan application process.
Here are some example credit score and interest rate range categories from a variety of providers on Canstar’s database, for applicants seeking a $20,000 unsecured personal loan with a three-year term in New South Wales (NSW), at the time of writing.
Credit score and interest rate ranges – unsecured personal loans
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MoneyPlace | ||
---|---|---|
Category | Fixed interest rate |
Comparison rate* |
A – Excellent | 7.24% – 9.39% | 7.24% – 11.49% |
B – Very Good | 9.79% – 11.99% | 11.89% – 14.85% |
C – Good | 12.49% – 17.49% | 15.36% – 21.22% |
OurMoneyMarket | ||
Category | Fixed interest rate |
Comparison rate* |
Excellent | 6.57% – 9.29% | 7.59% – 10.33% |
Very Good | 6.69% – 9.99% | 7.71% – 11.03% |
Good | 7.99% – 11.99% | 9.02% – 13.04% |
Plenti | ||
Category | Fixed interest rate |
Comparison rate* |
Excellent | 7.99% – 8.99% | 7.99% – 11.05% |
Very Good | 9.99% – 12.49% | 12.06% – 14.59% |
Good | 12.99% – 14.99% | 15.10% – 17.12% |
Source: Canstar, 07/08/2024. *Read the Comparison Rate Warning. Examples taken from Canstar’s database and shown in alphabetical order by provider, with fixed interest rate and comparison rate ranges applying at the time of writing. The comparison rate on personal loans includes most of the fees and charges on the loan in question, such as establishment fees. Specific interest rate and comparison rate ranges for personal loans will differ from provider to provider and other terms and conditions may apply. Contact the provider for these details.
Compare Low Interest Personal Loans
How can I get a better interest rate on my personal loan?
If you don’t have a loan yet, working towards improving your credit score may put you in a stronger position to get a better interest rate if and when you do decide to apply. You can also compare different personal loan products, such as secured loans, unsecured loans and car loans and their providers with Canstar. Comparing different loan providers may lead to a better interest rate and deal. Personal loans usually have lower interest rates than credit cards, but like any credit product, there are still risks involved. Their interest rates are still considered high compared to other credit types. Before you go ahead with a loan, you may like to consider creating a budget first. You could also use a tool such as Canstar’s Personal Loan Repayment Calculator to help ensure you can make repayments in the long run. For existing customers, negotiating with your provider could be an excellent step to take, if you want to get a better interest rate on a personal loan.
If you’re experiencing financial difficulty however, you can call the National Debt Helpline on 1800 007 007 to speak to a financial counsellor for free.
What else should I consider in choosing a personal loan?
Canstar releases annual Personal and Car Loan Star Ratings Awards that you may find helpful to identify products and providers that represent outstanding value overall. With Canstar’s unique methodology, both price and features are compared across personal and car loan products in our database.
There’s also peer-to-peer (P2P) lending, which provides an alternative to banks for a range of borrowers and loan types. Peer-to-peer lending works by matching borrowers with private lenders, usually on a marketplace type platform. It’s important to consider if this type of lending is suitable for your personal needs.
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Additional repayments
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Redraw facility
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Top-up facility
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Application fee: $0
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Annualised fee: $0
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Loan terms available: 1 year to 7 years
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Additional repayments
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Redraw facility
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Top-up facility
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Application fee: $0
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Annualised fee: $0
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Loan terms available: 5 years
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Additional repayments
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Redraw facility
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Top-up facility
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Application fee: $0
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Annualised fee: $0
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Loan terms available: 3 years to 7 years
Fast quote. No account required.
Won't affect your credit score. GET YOUR RATE NOW.
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Additional repayments
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Redraw facility
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Top-up facility
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Application fee: $575
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Annualised fee: $0
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Loan terms available: 3 years to 7 years
Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promotion products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promotion products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
Cover image source: HAKINMHAN/Shutterstock.com
This article was reviewed by our Content Editor Alasdair Duncan before it was updated, as part of our fact-checking process.

- What are interest rate ranges on personal loans?
- How is your personal loan or car loan interest rate determined?
- What is a credit rating or score?
- What are the credit score bands?
- How does my credit score affect interest rate ranges?
- How can I get a better interest rate on my personal loan?
- What else should I consider in choosing a personal loan?
^Read the Comparison Rate Warning.
Try our Personal Loans comparison tool to instantly compare Canstar expert rated options.
^Read the Comparison Rate Warning.