Get the Best Interest Rate on Your Loan: Here’s How

Updated: Mar 18

Photo by Etty Fidele on Unsplash

When you’re getting ready to apply for a loan, finding one with a low-interest rate can save you a lot of money. A good interest rate can help keep your monthly payments down and reduce the amount you’ll pay over the life of the loan.

Whether you’re looking for a personal loan, mortgage, or car loan, here’s how to get the best rate possible.

Get Your Credit Loan-Ready

The first step to scoring a low-interest rate is checking your credit report and score—and doing what you can to improve your score, if necessary. Lenders use your credit score and credit history to help decide whether to approve your application and to set your loan’s interest rate and terms. In the months leading up to applying for a loan, it’s important to check your credit score and report regularly.