How to get better interest rates on your home, car, and personal loans

Mind your credit
Credit history is the main determinate of interest rate. Credit history is so central to the lending industry because it is a score that gives lenders and idea of the type of borrower that you will be. If your credit score is low, then lenders assume that you are a bad money manager and that you are irresponsible when it comes to paying your debts. As a result, the only way that lenders will allow you to borrow their money is if they increase the interest rate in order to protect their investment. When you are perceived as being a high-risk borrower your interest rate will also be high. If on the other hand your credit score is high, meaning that you have shown a history of responsible borrowing and repayment of loans as well as mature use of credit, then your interest rate will be low. Not only will having a better credit score get you a better interest rate, but your loan will be highly desired. Banks will not just see you as a decreased risk but they will also see lending you money as a positive investment. Having stellar credit will put the lenders in a position to negotiate a lower interest rate with you, not the other way around.
Managing credit is simple in concept but more complicated to live by. Sometimes it is difficult to exercise restraint and to be wise with our money. Here are a few basic tips for increasing your credit score. Working on improving your credit will take time to really make a drastic difference so start now!

 Do not carry a balance of more than 15% of your credit card's total limit.
 Do not make too many inquiries into your credit history at least 90 days before you will be requesting a loan (when you access your credit it looks to lenders as if you are trying to get loans, doing so too often will make you a higher risk).
 Show stability in your job and residence for at least 2 years before applying for a home loan or any loan for a considerable amount of money.
 The more opened and diverse credit accounts that you have opened and under control the better your credit score.
 The length of time that you have been building credit accounts for about 15% of your score, so start building creditworthiness as early as possible.
 Make your payments on time. Collections agency inquiries and bankruptcies send giant red flags to lenders. You must show an ability to re-pay your loans or no one is going to lend you money and if they do your interest rate will be very high.

Shop around
If you are in the market for a smaller loan like for a car or a minor construction loan, it is a good idea to shop around to find the financial institution with the best interest rates for your circumstance. In addition to finding different interest rates also consider how the terms of the loan differ. Look for any fees, charges or penalties that may be part of the loan agreement.

Go with a loan officer not affiliated with any one bank.
Loan officers with good reputations in the business will have relationships with lenders all over the country. With more lenders to choose from you are more likely to have people competing for your loan and therefore you have a greater likelihood of obtaining a better interest rate. When you are looking for a home loan, even a portion of a percentage difference in the interest rate that you get can mean the difference between paying hundreds or thousands more over the length of the loan. .05 or even .005% may not seem like very much now but times that by 12 payments a year for 30 years and you will be surprised how much it can add up to. Do your homework and find a loan officer who is knowledgeable enough to know how to get you the best interest rate available.