Most people will tell you to shop around for the best rate. Whether you are looking for a loan, a mortgage, a credit card or some other financial product, it’s wise to shop around. This is a good advice, for most part.

But how you do it matters, and it matters a lot.

If you have a good credit history you could have some negotiating power and have financial institutions clamoring for your mortgage or credit card business. If you don’t, looking around for the best rate can destroy your credit even further.

It’s a double edged sword: every credit inquiry lowers your score but in order to get the best rate you have to shop around. If your credit score can handle it, don’t hesitate to shop around. Once you are approved…

Don’t take the first offer you get!

The first offer of a loan, mortgage or credit card doesn’t have to be one you jump on. Don’t hesitate to see how competitors to your bank or financial institution fare in terms of savings. Once you have a couple of offers, take it to each lender and try and negotiate an even better rate or terms!

But always remember: never get in over your head!

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