A good credit score can lead to a better interest rate
10/05/2010
By Credit.com Staff
The best interest rates go to the people with the highest credit score, according to a report from CNN Money.
As a result, it's important for consumers to make an effort to improve their credit score prior to applying for a loan of any type. While this process isn't easy, it can pay large dividends for those who diligently work to repair their rating.
The report said consumers who have a score above 740 will see the best interest rates available. While those between 700 and 740 are considered prime candidates, they won't get top APRs.
Consumers whose credit score is below 680 will have trouble obtaining a loan, and those who are able to do so will be penalized with harsh interest rates. The report said those who have a rating below 620 will likely not even be considered for a loan.
Many lenders have tightened restrictions regarding who they will allow to borrow money as a result of the economic downturn.
