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The higher your credit score, the lower the interest rate on the mortgage. Borrowers with high credit scores tend to get lower interest rates on mortgages than borrowers with low credit scores. A credit score of 740 or higher qualifies for the best interest rates from most lenders.
The agencies use a formula to rate your credit history on a scale of 300 to 850, known as a FICO score. A higher number usually results in a lower car loan interest rate. Advertised interest rates are usually for borrowers with credit scores in the good to great range -- FICO scores above 700, for example. That doesn't mean those with less than perfect credit can't get a loan; it just means you'll have a higher APR.