subject: How Your Credit Score Affects Interest Rates On Loans [print this page] Although you may only think of your credit score as the number that helps you qualify for loans and credit cards, it plays an even greater role. If you qualify to borrow money, your credit score also affects the interest rate you will be offered. In general, a higher credit score will earn you a lower interest rate. This could translate into big savings, which is why you should pay attention to making your score as good as you can get it.
What is an Excellent Credit Score?
Most lenders offer the lowest interest rates to borrowers who have a credit score of 775 or higher, which is excellent credit. To get your score this high, you will need to pay on time for all of your bills and have several years of credit history under your belt. Although your credit score can mathematically be higher than 775, it generally wont get you better rates because youre already in the top tier.
When Does Your Credit Score Affect Interest Rates?
Lenders look at your score when you apply for the loan or credit card, so thats when your score counts. If your score goes up or down later, it wont do anything to your interest rate. This means that you need to put your best foot forward when you apply. If you had a bad credit score when you first got a loan, consider refinancing once your score has improved so you can qualify for a lower interest rate and cut the cost of your debt.
How Can You Learn About and Improve Your Credit Score?
Here at CreditNowUSA, we want you to be educated when it comes to your score so you can get the best deals on loans. We will look up your credit score for free and provide monitoring so you can track when your score goes up or down. Seeing when it fluctuates can help you identify when the best time is to apply for a loan and get the lowest possible interest rate.
For more information, go to Credit Score at http://www.creditnowusa.com/Credit-Score
