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

By Ava Crawford ·
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.

Mozo data shows that you can save a considerable amount of money taking out a personal loan with excellent credit vs with average credit.

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

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 - rates updated daily

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Personal Loan

    Unsecured, Fixed

    interest rate
    comparison rate
    Monthly repayment
    4.99% p.a.to 19.99% p.a.
    4.99% p.a.to 19.99% p.a.based on $30,000
    over 5 years

    Excellent credit score needed to obtain this rate. Enjoy no-fuss personal loans of up to $30,000 with Alex Bank. No hidden early repayment penalties. Terms from 6 months to 5 years. Convenient and fast 100% online approval. Must be over 18 to be eligible. Winner of Mozo's Experts Choice Best New Loan Product award 2021^.

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    Details
  • Hot DealA special low rate starting from 5.45% (6.07% comparison rate)
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    Mozo Experts Choice 2021
    Low Rate Personal Loan (Fixed, Unsecured)

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    5.45% p.a.to 8.48% p.a.
    6.07% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    OurMoneyMarket offer competitive low rates on loans up to $75,000, plus free extra repayments and fee-free redraw facility. Winner of Mozo's Experts Choice Unsecured Personal Loan 2021 award.

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    Details
  • Hot DealNo fees for borrowers with excellent credit
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    Mozo Experts Choice 2021
    No Fee Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.95% p.a.to 17.95% p.a.
    5.95% p.a.to 17.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 with no fees, now and forever. Minimum requirement to earn $22,100 p.a. and have good to excellent credit. Winner of Mozo’s Experts Choice Unsecured Personal Loan 2021 award.

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    Details
  • placeholder
    Personal Loan

    Unsecured, Fixed, Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.39% p.a.to 7.49% p.a.
    6.39% p.a.to 8.19% p.a.based on $30,000
    over 5 years

    With low rates for borrowers with excellent credit, a quick 1 minute rate estimate and simple online application, there’s a lot to love about this loan! You’ll not only benefit from no exit fees, there are also no early repayment fees. To qualify, simply earn above $25,000 and you’ll be on the way to start spending.

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    Details
  • placeholder
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.35% p.a.to 19.09% p.a.
    6.14% p.a.to 19.99% 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'll likely qualify.

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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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