First, let's take a look at what affects your interest rate:
Personal factors like your credit score and the type of loan you choose
Economic factors like inflation and Canada’s prime lending rate
You can’t control economic conditions, but you can control the personal factors that a lender considers when determining the interest rate on your loan.
Here are three tips that can rebuild your credit score and lower the interest rate on your next personal loan:
Use less than 25% of your credit card balance – staying under this threshold can help improve your credit score
Limit credit inquiries – by doing so, this will reflect positively on your credit score
Choose a secured loan if you’re a homeowner
Watch this video to learn more.