A credit score is crucial when applying for a loan. If your credit score is too low, it may result in a very high loan Annual Percentage Rate (APR), or in the worst case, a rejection of your loan application. Below are the typical APRs associated with different credit scores:
| Score | Level | Typical APR (reference only) |
|---|---|---|
| Credit Score A | Excellent | <5% |
| Credit Score B | Good | 5%-7% |
| Credit Score C | Good | 5%-7% |
| Credit Score D | Fair | 8%-12% |
| Credit Score E | Fair | 8%-12% |
| Credit Score F | Fair | 12%-45% |
| Credit Score G | Poor | 12%-45% |
| Credit Score H | Poor | >45% |
| Credit Score I | Near Bankruptcy | - |
| Credit Score J | Near Bankruptcy | - |
The above APRs and levels are provided by banking professionals for reference only. The final rate will be determined by individual credit institutions based on your personal circumstances.
Please note that excessive price comparisons can lower your credit score. When you apply for credit with a bank or financial institution, whether it's a credit card, loan, or mortgage, the lender will assess your application based on their lending criteria. Additionally, they may review your credit record through TransUnion as part of the evaluation process. Too many inquiries can lower your credit score. TransUnion recommends checking your credit report at least 3 months before applying for a mortgage, and conducting price comparisons on comparison websites before making a formal application to credit institutions.