Compare Insurance, Mortgage Rates & Credit Cards (2024)

FAQs

Do mortgages have higher interest rates than credit cards? ›

Interest on credit cards tends to be higher than on mortgages or auto loans. CNBC Select answers why issuers charge such high interest and how you can avoid it.

Bankrate offers a mortgage rates comparison tool to help you find the right rate from a variety of lenders. Keep in mind: Mortgage rates change daily, even hourly, based on market conditions, and vary by loan type and term.

While the vast majority of insurance companies use credit-based insurance scores to help determine the price of insurance, it is banned in the states of Massachusetts, Michigan, Hawaii, and California.

Comparing mortgage offers helps you find the lowest possible rate, which can ultimately save you thousands in interest. If you're not careful about how you comparison-shop, though, you could unnecessarily hurt your credit score, which can make it harder to qualify for the best rate.

Secured loans typically offer some of the lowest interest rates due to the collateral provided by the property. The loan is secured by the home, gold, or any vehicle, which reduces the risk for the lender.

Even people with good credit scores make mistakes, and a bank may charge a penalty APR on your credit card without placing a negative mark on your credit report. Penalty APRs typically increase credit card interest rates significantly due to a late, returned or missed payment.

What's a good insurance score? Insurance scores using the LexisNexis Risk Classifier range from 200 to 997. According to the company, a score of 770 or better is considered good and will get you favorable rates.

What states don't use credit scores for insurance? ›

Most major car insurance companies like GEICO, Progressive and State Farm factor in your credit score when giving you a quote. However, if you live in California, Hawaii, Massachusetts, or Michigan, you're in luck—these states don't allow credit history to affect your auto insurance rates.

A lower homeowners insurance premium doesn't necessarily mean your escrow payment will decrease. Even if your insurance cost goes down, your mortgage payment or property taxes might independently increase and offset the lower premium.

Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 705, based on VantageScore^® data from March 2024.

The Bottom Line

Personal loans have relatively lower interest rates than credit cards, but they must be repaid over a set period of time.

You'll get the money relatively quickly and know how much to pay monthly. A loan typically gets you a better interest rate than a credit card, assuming your credit score's good. It might be for you if you want to consolidate your debts or make a larger purchase.

However, in 2022, rates experienced a notable increase due to factors like inflation and Federal Reserve actions, climbing from 3.22% in January to a high of 7.08% by October. At present, mortgage rates have pulled back from the peak they reached last year and are hovering between the high 6% and low 7% range.

Interest rates on credit cards tend to be significantly higher than with a line of credit. Many credit cards offer reward programs, which is a clever way of getting your budget to go further (i.e. cashing in points for groceries, merchandise or travel).