 TITLE: What Is the Effective Annual Interest Rate (EAR)? CONTENT: Improve Credit to Lower the Effective Annual Interest Rate on Debt\n------------------------------------------------------------------\nLenders determine their interest rates based on your creditworthiness, and the lower your credit score, the higher the EAR may be. If you're looking to pay off debt through a consolidation loan or apply for new debt, take some time first to work on your credit to maximize your chances of scoring a low rate.\nStart by checking your credit score and credit report, then take steps to address the potential issues you find there. This process can take time but can ultimately save you a lot of money in the long run. END