If you’re like many people that have applied for a personal loan, you might feel at least a little bit persecuted. The bank advertises these low rates, and you hear about friends and family who are able to get loans at great rates, yet when you apply, you don’t get the same great rates.
Have you ever wondered why that is? Of course you have. To understand why this happens, however, you need to understand something about how personal loan rates work: Banks can charge what they want. There are federal laws that determine what rates banks can charge for military personnel, but other than that there is little in the way of federal regulation that deals with personal loan rates.
You also need to know that your credit score plays a major role in the rate the bank is willing to give you. Accordingly, here are some things you can do to keep the old credit score in a manageable position:
Photo via christine [cbszeto]