Anyone examining a student loan consolidation rate is looking for the best possible rate. Of course, the best possible rate would be the cheapest rate. Now, some may wonder if there really much of a difference between 8% and 9%. After all, 1% really isn't much is it? Well, 1% compounded interest runs into quite a bit of money over time. As such, it is critical to cut as many percentage points off as possible. However, it is acknowledged that for some people this may not be possible.

Lending rates are based upon credit scores. An individual with less than desirable credit the individual will find it difficult to be approved for a low rate. In fact, the rate on the consolidation might even be quite high. Thankfully, there is a method of acquiring lower rates. Best of all, the process is not as difficult as one may think.

The first step is to improve your credit rating. This will take some time but it will occur provided a few deliberate steps are taken. The first step is to curtail as much borrowing as possible. (With less debt to pay off the less chance there is to worsen a credit rating) The second step is to never, ever miss any credit card or payments. If you repeatedly miss monthly payments then your credit rating will suffer. Conversely, making regular payments will improve your credit rating.
There is another way to improve a credit rating that many people are not aware of. This is the process of making multiple payments per month. That is, in addition to a regular monthly payment towards sending a few additional payments will aid in improving your credit rating. Even if these additional payments are as low as one dollar they will be recorded on your credit history in a positive manner.
Ultimately, when you credit score improves you can petition the student consolidation lender to lower the rates. If they do not, you can always refinance with a lender who offers a better rate. Yes, it is as simple as that!