Excellent credit scores could save borrowers over $4k on personal loan rates

By Ava Crawford · · 2 min read
Fact Checked
Advertiser disclosure
two girls sitting in living rooms looking at an ipad looking at good personal loan rates because they have excellent credit

Everyone knows that when applying for a personal loan, having a good credit score can give you an advantage. But just how much of an advantage does a good credit history provide?

After crunching the numbers, it seems that squeaky clean credit can actually make all the difference when it comes to interest rates on your personal loan. Your credit score can be the deciding factor between an extremely competitive interest rate and a fairly high interest rate on your personal loan.

Surveying the over 200 personal loans in the Mozo database showed that you can save a considerable amount of money taking out a personal loan with excellent credit vs with average credit.

  • The average interest rate for a borrower with an average credit score on a $30,000 personal loan paid back over 5 in the Mozo database years is 13.18%, costing you an average of $11,122 in interest.
  • The average personal loan interest rate in the Mozo database for a borrower with excellent credit on the same loan amount and terms is 7.65%, costing you an average of $6,197 in interest.
  • Having excellent credit could save you $4,925 in interest on a $30,000 personal loan paid back over 5 years.*

Some lenders operate on a credit-based tiered interest rate system and reserve the best rates for borrowers with stellar credit. So if you’ve put in the long-term work of maintaining a perfect credit record, then why not reap the benefits with a personal loan that will reward you for that?

So, if you’ve got top notch credit and you’re after a personal loan to match, check some top picks below

Top low interest personal loans - last updated 20 April 2024

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
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    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
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  • Featured Product
    Mozo Expert Choice Badge
    Low Rate Personal Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
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    Details
  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.57% p.a.to 24.99% p.a.based on $30,000
    over 5 years

    Roll multiple debts into one loan to streamline your finances with one set of repayments and one interest rate. Competitive fixed interest rates with no monthly or early repayment fees and flexible repayment options. Easy online application and funding in as little as 24 hours (subject to approval).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
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    Details

**Based on 39 unsecured personal loans in the Mozo database that offer a range of interest rates depending on the applicant. Savings calculated as difference between the average of the lowest rates (7.65%) and the average of the mid-point from each products range of rates available (13.18%).

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.