If you’re making payments on anything at all, you’re probably looking, or at least interested in lower interest rates. In some cases, you may blame the company that holds the debt and sets the rates. But, the truth is that you have more control over those rates than you realize.
Your credit score and other elements of your credit report are the most significant factors when it comes to interest rates. The lower your score is, the higher your rates will be. You can get lower rates by raising your score, but it takes some time.
Though your credit score helps determine your interest rates, it pays to shop around… sometimes literally. Don’t apply to every place you see, but find one that seems as if you have a good chance of qualifying. Then, try to condense your debts as much as you can so that you can reduce the interest rates on multiple accounts.
When you’re shopping around, don’t just focus on interest. The same company may have a variety of plans. For instance, one company might offer you a $100 bonus for signing up, but they get that back in interest later on, so you really aren’t getting anything.
~Here’s to Your Financial Health!