Tips to Get the Best Personal Loan Rates
Before you complete the first quick loans with a credit check application you run across, you should do your research. Interest rates and terms vary greatly from lender to lender. Below are three tips to follow to ensure you get the best personal loan rate you can.
Tip #1: Know Your Credit Score
In obtaining a great interest rate for a personal 'quick loan', you need a good credit score. Trying to apply for a loan and not knowing your credit score could not only prove to be a waste of time, but also could damage your credit even more. Each time you apply for a loan, that is a hard hit against your credit score, which will lower it each time. To prevent this, it is best to know before you apply to multiple lenders what your score is.
Order a copy of your free credit report and take a look over it. Check thoroughly for any inaccuracies such as debts showing unpaid or credit cards that are not in your name. Other things that may not stick out as obvious are the addresses and employers listed in your file. Be sure to check for any inaccuracies in previous addresses where you have resided as someone could have fraudulently used your information to rent or buy property then later have been evicted or foreclosed on. It is a good idea to clear up any inaccuracies first to see if you can get your score increased. This is the first step to getting the best personal loan rate. You may qualify for a higher loan amount as well.
Tip #2: Sometimes it is Best to Borrow More
It is generally advised to never borrow more than you need. However, in some quick loans with a credit check instances borrowing more may come to a great advantage. The more money you borrow, lenders are willing to give you a lower interest rate. This generates more interest on a larger sum, which means more money for the lender.
Now, you can still stick to the rule of not spending more than necessary. You can pay back the excess immediately to avoid paying the interest rate on that. Be sure to play around with a loan calculator to help you make the right decision. You could also choose to pay off another loan or credit card. Typically, personal loans have a lower interest rate than credit cards. This is the perfect opportunity to lower your debt to credit ratio.
Tip #3: Shop Around for the Right Lender
Even with poor credit, you still have options rather than a bank or credit union to obtain a personal loan. A recent popular trend to obtain personal loans is through peer-to-peer lending. Multiple individual investors pool their money together to fund you a loan. As credit checks are necessary, the underwriting team digs a bit deeper to see what your credit entails. These rates are usually low as well, sometimes lower than your bank.
Following the above three tips before taking out quick cash loans will ensure you get the best deal possible. Finding the perfect balance between your credit score and amount of the loan you need really help you find the right quick cash loans lender.