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.
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.
