A personal loan can be a great way to tide over any need for cash that you may have. It is very important to realise that when you take a loan, you must make sure that you are getting the best possible deal. The interest rate on your loan is the single most important factor that you need to think about when you are borrowing from a personal loan app or from any other conventional lender. What will be your loan EMI and how much will you be paying back in total for the money you have borrowed are all decided based upon the interest rate that is charged on the instant money loan. Therefore, it is very important for you to make sure that you are getting loans at the lowest possible interest rates.
Get a Personal Loan This Year at the Lowest Interest Rate
- Choose a personal loan app over a conventional lender
One key reason that conventional lenders tend to offer high-interest-rate loans is that they find that the operational costs of lending can be very high. They have very higher operational costs because of the brick and mortar set up of the traditional lenders and the huge army of staff they need to keep these offices operational. Further many lenders tend to keep high-interest rates on their loans because they are using traditional marketing channels which increases their overhead costs significantly. A personal loan app on the other hand does not have these high operational and overhead costs. Therefore, they pass on the benefits to their customers in the form of low-interest rates and other fees.
- Comparison shopping between lenders is a good place to start
When you are looking to take a personal loan, it is very important that you approach as many lenders as possible and compare the offers they have for you. While this might be hard for conventional lenders because no one has time to visit multiple lender offices over days, doing comparison shopping for a loan from a personal loan app is much easier. Identify a few trusted lenders and get their apps, preferably those which are run by well-established brand names and firms. See what options you are can get from each and who is offering you the lowest interest rates. Based on this information, you can decide.
- Take advantage of festive offers from lenders
Several conventional and online lenders tend to run special schemes in the festive period to make good business volume. During these special offers, they will provide you with loans at very attractive interest rates as well as very low processing charges. If you are not in urgent need of money, then you might consider waiting till the festive time. You will get attractive interest rates as part of personal loan festive offers and while you are waiting, you might even be able to save some money, thus reducing the overall amount you need to borrow.
- Provide information about all your income sources
If you are making money from more than one source, it is very important for you to reveal all your income sources to your lenders. The lenders want assurance that you have the financial firepower to service your debts. Showing only your primary income source will not only limit your borrowing capacity, but it can also create the chance that lenders may offer you higher interest rates. On the other hand, if you show all your income sources, the lender will know that you are earning as per your true potential and that their loaned money is safe. Showing a strong probability of timely loan repayment is one great way to show your lenders that they can give you low-interest rate loans.
- Always maintain a high credit score
If there is one single sure-shot way to make sure that you are only getting the best possible interest rate on any instant money loan you take, it is to maintain the highest possible credit score that you can. See, lenders want back the money they give out as loans. A credit score of an applicant is the single most effective way for them to gauge if a person is known to be financially disciplined with the money they borrow or if they are lending in what is essentially a hole. People who maintain a credit score of more than 775 or 800 are essentially assured to get the best deals from all lenders be it conventional or a personal loan app.
In conclusion, paying anything than the lowest possible interest rate for your loan means that you are essentially giving away money that you could have kept for yourself. It is very important to bargain for a low-interest rate to the best of your ability. You should never ever proceed with the loan application unless you are sure that you have turned every stone and tried every trick to ensure that you are not paying too much in loan interest.