People may need to secure a loan for many different reasons, whether that’s to pay for a university course, an extension on the home or vehicle financing. Loans are needed when something can’t be paid upfront in cash. When you borrow money, getting a good low interest will help save you money in the long run. Here’s how to get the best personal loan:
Have Good Credit
One thing that can get you really low interest on a personal loan is good credit. If the lender can see you have a good credit rating then not only are they more likely to offer you the loan, they are more likely to offer you low interest rates.
Take a look at your credit rating and see what it looks like to a loan company. If your credit rating isn’t very good, there are certain ways you can give it a boost. You can apply via a targeted application and negotiate with creditors to help get you a better APR.
To make sure you’ve got good credit you must make sure any money you owe is paid off, such as phone bills and car insurance. Missed payments will lower your credit score while paying all of your bills on time will improve it.
Secure A Loan With Assets
You can get a better APR on loans by securing them with any valuable assets you may own. This is called a “secure” loan, and while it seems like a good idea you must remember that if you miss a payment or fail to pay off the loan then your valuable asset is at risk. This could be your house or car, so make sure you really can pay off the loan before applying and putting your property down for security.
Consider All Of Your Options
You don’t just have to borrow your loan from a big well known company. When finding a loan with low APR, consider all of your options.
You could micro-lend or even peer to peer lend, where single investors will probably be able to offer you better loan rates than you would usually find.
Have you thought about an informal loan? Your mom/dad/nan/aunt/sister could be more than happy to lend you some money informally while adding on no interest at all. Depending on the amount you need to lend this could be the best option to try before anything else.
You could always offer a family member interest when asking them to give you an informal loan, but you must be sure you both have a lot of trust for one another before the loan occurs.
Try Government Programs
The government can sometimes offer low interest loans to people with low income or low credit ratings. It’s worth taking a look at this option to make sure you get the best possible interest on your personal loan.
Always make sure you know the repayment terms and ensure the interest rate is fixed. Read through any documentation properly before signing anything!
Popular How To Guides
How To Decide Whether A Vauxhall Could be the Right Car Brand to Invest in
Continually recognized as one of the UK’s most beloved car brands, Vauxhall have once again come in as one of...
How to Ensure Your Car has GAP Insurance
It is not common knowledge amongst motorists, but if your car were to be written off then your comprehensive insurance...
How To Make Awesome Cocktails
The cocktail culture is ever changing with innovations every year. Mixing of different drinks creates new trends of cocktails. Brands...
How To Save Money With Your Gadgets
With the mass amount of sales from our top retailors all year round, and even better deals around the corner...
How To for Wealth Brokers: Develop Your Online Networking Skills
There are numerous statistics that reinforce the value of social networking for businesses, regardless of the industry in which they...
How To Live Well with a Disability: Improving Your Quality of Life
Living with a disability can make life more challenging, especially if you are newly disabled. Depending on your disability, there...
How to Make Your Office More Eco-Friendly
Research has shown that an office designed with the environment in mind can help improve your workplace culture, making it...
How to Trade Forex to Make Extra Cash?
Everyone is looking to make some extra cash in a side hustle. This is mainly because people need a little...
Business3 years ago
5 Things You Must Consider Before Starting A Construction Company
Cars & Vehicles3 years ago
How To Deal With A Driving Offence (Quick Tips)
Games / Video Games1 year ago
How To Connect a Mouse and Keyboard to Your PlayStation 4
Sport1 year ago
How To Get Into A New Sport: 10 Inspiring Tips
Cleaning5 years ago
How to Make a Shower Tray Look Like New
Fun1 year ago
How to Survive a Zombie Apocalypse
Business4 years ago
How to Make Your Own Mini Conveyor Belt
Home Maintenance & Repair4 years ago
How To Build Your Own Fitted Wardrobes