Here are some tips to ensure you’re tapping into the best possible interest rate available for your next mortgage, car loan or credit card.
- Pay your current bills on time.
Late payments reflect badly on your credit history. Credit granting institutions will add a premium to your borrowing rate to compensate for your account’s higher credit risk.
- Close off unused or unnecessary credit card accounts.
This is because too much available credit harms your credit rating, even if you don’t fully utilize it.
- Comparison shop for a better rate.
Don’t settle for the rate initially offered to you. Comparison shop with other credit granting institutions. Use the service of a loan/mortgage broker.
- Don’t forget to ask for a better rate.
Always ask. The worst is they’ll say ‘no’. The best is they'll agree to a better rate for you!
Credit history review
- Regular monitoring of your credit report with the three major credit agencies is necessary to ensure your credit history is accurate. This is because:
- Any inaccuracies may affect your good credit rating;
- Same named person’s negative credit information may have been accidentally included in your report;
- Someone may have stolen your identity and systematically destroyed it.
Notify the agencies immediately if you notice any inaccuracies. Follow up to ensure they are corrected.
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 Sylvia Lim is the author of Finances After 55, and Personal Budgeting Kit.
Sylvia is a Certified Financial Planner and Certified General Accountant with over 20 years of experience providing clients with sound financial advice and services.
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The Three Major Credit Agencies
In the US:
In Canada:
Find more saving and finance tips in Sylvia's books--visit the Books page.
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