A credit score is important to determine whether you qualify for credit, such as a loan or credit card. But did you know that it also influences the interest rate lenders will offer you?

If you have a higher credit score, lenders will feel comfortable providing you with a lower interest rate because you are considered less of a risk, and you will pay less overall.

Check your credit report to see how you can improve your score.

Lenders reward good credit scores with lower interest rates.

Here's some other ways to help you get a more favourable interest rate and increase your chances of credit approval:

1. Make sure you don't miss a payment

Lenders look at your entire credit history, including whether you've missed a payment or not. On ClearScore, you can see whether you have missed a payment or are overdue.

2. Keep an eye on your credit report

Your credit report is a good way to check whether there's a mistake or if you're a victim of identity fraud – both of which could affect your reputation.

3. Shop around

Each bank has different procedures and approval requirements – and some are stricter than others. That's why it's a good idea to check all your options. On ClearScore, we show you offers from multiple banks and partners across the country, so you can decide what's best for you.