How do I apply for a student loan?

You can apply for a student loan through banks, online lenders, credit unions and the federal government. To apply for a federal student loan, you'll fill out the Free Application for Federal Student Aid (FAFSA), which opens up on Oct. 1 each year. Once you fill it out, you will be notified about your eligibility for federal student loans and other financial aid. To apply for a private student loan, first compare a few lenders to determine which offers the best rates and terms for your needs. You can prequalify with most lenders, which lets you see your loan offer before submitting a formal application. When you've selected a lender, you can apply online, over the phone or in person, if the lender has physical locations.

Will I need a co-signer for private student loans?

Whether or not you need a co-signer for private student loans depends on your financial health. If you have poor credit or little income, a creditworthy co-signer could help you get approved or receive a better interest rate. Some lenders also require co-signers for undergraduate borrowers, regardless of financial health.

Can you get a student loan with bad credit?

You can take out new student loans or refinance your existing loans with bad credit. Most federal student loans don't even check your credit, which makes them a great option for borrowers with little to no credit history. If you are applying for private loans, some lenders cater to borrowers with poor credit, although interest rates may be higher and loan amounts smaller. Before applying for any student loan, check for credit score requirements at each lender and get prequalified if possible.

What are the pros and cons of private student loans?

Private student loans appeal to many borrowers because of their high borrowing limits and low interest rates for good-credit borrowers. They also give you the option of fixed or variable rates, so you can choose the best plan for your budget. However, private student loans have fewer deferment and forbearance options than federal student loans, and borrowers with bad credit could see interest rates in the double digits.

When is refinancing student loans a good option?

Refinancing your student loans may be a good option if you'd like to consolidate multiple loans into a single loan or if interest rates have fallen significantly since you first took out your fixed-rate loan. However, refinancing can only be done through private lenders, so you'll lose options like income-driven repayment and COVID-19 relief programs if you refinance your federal loans.

How do I refinance my student loans?

To refinance your student loans, shop around and compare a few lenders to see which one offers the best rate and repayment terms for your situation, getting prequalified where possible. When you're ready to apply, you can typically apply online, over the phone or in person. Once you're approved and have submitted the necessary documentation, the lender will pay off your existing loans, and you'll begin making your new payments.

Current car loan interest rates

Written by

Rebecca Betterton

Edited by

Rhys Subitch

Mar 24, 2023

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Car loan interest rates change frequently and impact how much you’re going to pay each month. So it’s important to track them when comparing auto loan rates. Bankrate surveys top banks across U.S. markets and crunches the numbers to find average interest rates for common loan terms. Use the below table, which updates weekly, to help you know the best time to buy a new or used car.

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Current auto loan interest rates

Dates	60-month new car	48-month new car	48-month used car	36-month used car
3/22/2023	6.49%	6.45%	7.03%	6.74%
3/15/2023	6.48%	6.44%	7.02%	6.73%
3/8/2023	6.30%	6.27%	6.90%	6.58%
3/1/2023	6.30%	6.27%	6.90%	6.58%
2/22/2023	6.27%	6.25%	6.88%	6.55%
2/15/2023	6.27%	6.25%	6.88%	6.54%
2/8/2023	6.26%	6.23%	6.86%	6.52%
2/1/2023	6.19%	6.16%	6.83%	6.49%
1/25/2023	6.18%	6.17%	6.83%	6.49%
1/18/2023	6.17%	6.16%	6.8%	6.47%
1/11/2023	6.17%	6.15%	6.8%	6.47%
1/4/2023	6.26%	6.25%	7.03%	6.66%
12/28/2022	6.13%	6.12%	6.77%	6.44%

2023 outlook for auto loan interest rates

2022 proved to be a complicated year in all facets of American finance. And now, in 2023, it’s clear the automotive industry will not come out unscathed. Decisions made by the Federal Reserve and the remaining supply chain issues all play a part in how much it's going to cost to finance your next car.

The increased Fed rate, sitting at 4.75 percent to 5 percent following the March meeting, will indirectly affect your rates. So even as sky-high vehicle prices have fallen 4 percent since its peak this past summer, the increase in interest rates will still result in a more expensive experience overall.

But while the federal funds rate influences lender’s rates, it is not the only consideration. Lenders will also look at your credit score, amount financed and your loan term. With all of this in mind, consider approaching your next loan with extra care. Be sure to apply for preapproval and shop multiple lenders.

What’s the difference between new and used car interest rates?

Loans for newer cars tend to have lower interest rates than those for used cars. Lenders see newer cars as less of a risk — they’re less likely to break down and lenders can identify exactly how much they’ll depreciate over time. Newer cars also have more predictable resale value than older cars, and that predictability results in a lower interest rate.

Average interest rate by loan type

As an example, here are the interest rates for new and used cars as of Dec. 14, 2022.

Term	New	Used
36 months	6.06%	6.43%
48 months	6.09%	6.74%
60 months	6.1%	7.86%

Auto loan rates by credit score

Credit scores of 740 or higher — what’s considered very good — will help you qualify for the lowest auto loan interest rates. But even if your credit score is lower, you may still qualify for a decent rate.

Here’s a breakdown of average interest rates by credit score, according to Experian’s 2022 third quarter data.

Credit score	New cars	Used cars
781 to 850 (super prime)	3.84%	3.69%
661 to 780 (prime)	4.9%	5.47%
601 to 660 (nonprime)	7.25%	9.81%
501 to 600 (subprime)	10.11%	15.86%
300 to 500 (deep subprime)	12.93%	19.81%

Ready to compare rates from top lenders?

New loan rates Refinance rates

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_{All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.}