“Same Loan, Different Interest Rates—Why? 
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I applied for a loan and got a higher interest rate than my friend for the same amount! Banks say it’s based on credit scores, but how much does a small difference (750 vs. 800) really matter?
Can you negotiate a lower rate with an average score?
The interest rates which banks offer for loans depend on credit scores because higher scores result in lower interest rates. A minimal change between 750 and 800 credit score points will result in different loan payment amounts. Borrowers with lower scores appear riskier to banks which results in higher interest rates.
Banks generally provide negotiation options to borrowers who demonstrate stable income or positive repayment history or maintain an ongoing banking relationship. A high credit score combined with financial stability enables borrowers to obtain improved loan conditions.