Although I’m not a spendthrift, I feel as if I never have enough money in my bank account. Because I’m setting aside cash in order to buy a new home, I’m always searching for ways to decrease my monthly expenses. Fortunately, through my research, I’ve found some great, simple tips that provide substantial savings over time. For instance, I turn off my HVAC unit whenever I’m traveling. I also conserve gasoline by running all of my errands for the week on the same day. On this blog, I hope you will discover some easy, painless ways to lower your regular monthly bills. Enjoy!
Financial emergencies happen. If you find yourself in need of access to cash, a personal loan can be a viable solution. Personal loans are designed to offer an affordable alternative to payday loans or cash advances.
Securing the best interest rate will help to ensure that you are accessing the most affordable loan possible when you need additional cash in the future.
1. Know Your Credit Score
Before you apply for a personal loan, it's important that you know your credit score. The bank or credit union will use your credit score to determine the level of risk involved in extending a personal loan to you.
You should always go into a personal loan application knowing what your credit score is listed as with the major credit bureaus. This information will help you determine if the interest rate you are being offered is fair based on your credit history, or if you need to negotiate for a lower interest rate to secure the best deal possible on your next personal loan.
2. Offer Up Collateral
One of the easiest ways to reduce the interest rate on a personal loan is to offer up some type of collateral to your financial institution. Interest rates typically reflect the amount of risk that the lender takes on when extending a loan.
Using a vehicle, piece of real estate, jewelry, or another valuable asset as collateral for your personal loan significantly reduces the risk for a lender. If you default on the loan, the lender can take possession of your collateral and sell it off to offset any financial losses.
3. Find a Co-Signer
Another thing you can do to reduce the interest rate you pay on a personal loan is to apply with a co-signer. A co-signer is someone who agrees to be responsible for paying off the loan in the event that you fail to make your payments on time.
A lender will consider the credit rating of the co-signer when processing your application. A co-signer with great credit can help you qualify for a lower interest rate that will keep the cost of securing a personal loan to a minimum.
Don't let higher interest rates deter you from using a personal loan in the future. You have a lot of options available to you when it comes to finding ways to reduce the interest rate on a future loan. Talk to your financial institution about the benefits of a personal loan today.
Share28 July 2019
