Back to Blog

Credit Interest

Paying with Credit Card

Have a low credit score? You can still get a loan. Learn how.


When you take out a loan, your credit score can have an impact on your interest rate. The lower your credit score, the higher your interest rate will be. Now, that doesn’t mean you shouldn’t get a loan, but it does mean that you should work with your financial institution to reduce your interest rate as your credit score improves. Say you have a C credit score and the best interest rate you can find is 8% for a sixty-month term. Just apply for the loan, and let the loan consultant know that you want to improve your credit so that you can get that loan repriced to a lower interest rate in the future. The consultant can give you some ideas for improving your credit score, and we’ll ask you to come back once you have achieved these goals. When your credit has improved, they can reprice the loan at a lower interest rate based on your improved credit score and the term of the original loan. In other words, if you’re able to raise your score to an A plus, you may be able to get a 4% interest rate, or even lower, at the original 60 month term. Then you can choose to make your lower payments to improve your cash flow or keep the payments the same to reduce the loan faster.


Worried about Your Credit?

This eBook can help you improve your score.

Download the eBook


VSECU is a member-owned cooperative and not for profit credit union for everybody who lives or works in Vermont, offering a full range of affordable financial products and services to its member-owners. VSECU is committed to improving the lives of Vermonters by empowering possibilities for greater social, environmental, and financial prosperity.

Reading on Phone

Stay informed

Stay up to date on financial tips, tricks, and tools that will build your financial literacy and help you live a more prosperous life.

Subscribe now!