2. How to Get a Low APR Personal Loan
A low APR (Annual Percentage Rate) loan is almost always given to loan
applicants whose credit rating is excellent. You can do a lot to improve your
chances of getting a low-interest rate personal loan by improving your credit
score. Besides your credit score, there's very little left to getting any loan with a
low-interest rate.
Of course it is possible to get a loan from friends and family members, where the
rates are really low. In fact in most cases, loans obtained from friends and family
members as well as from your work place, do not attract any interest at all.
However, if you want to borrow from regular lenders such as banks and other
mainstay financial institutions, you should consider these steps in order to get
the loan at a low rates.
3. How to Get a Low APR Personal Loan
1. First Things First.
Improve your credit score. Low APR personal loans are
normally given to applicants with high or stellar credit
scores. To raise your credit score, remove as much of your
debts as possible and pay your bills on time. Also refrain
from making too many credit enquiries. Whenever, you
make a credit enquiry by applying for a loan or credit
card, it lowers your credit score.
4. How to Get a Low APR Personal Loan
2. Apply for Personal Loans Using Collaterals.
Unsecured personal loans have high interests rates even if you
have excellent credit score. So to get a low APR personal loan,
consider getting a secured loan instead. For example, you can
use your car title as collateral. Usually the value of the
collateral must be equivalent to the amount of loan you want
to borrow. Secured loans usually come at lower rates than
personal loans.
5. How to Get a Low APR Personal Loan
3. Using a Co-Signer
The next tip of a low APR personal loan is to get a co-signer. This is also referred to as a co-
debtor. You can ask a relative (parent, sibling or spouse) who have good credit rating to
sign the loan with you. When you have a co-signer, lenders take into account their credit
rating of the before determining the interest rate at which they give you the loan.
The APR will be low if the co-signer has an excellent rating. Ensure that you do not default
on the loan because if you do, then the co-signer will be responsible for paying the
remainder of the loan and the interest. Besides it will negatively affect his or her credit
rating so be aware of this.
6. How to Get a Low APR Personal Loan
4. Essential Comparison Shopping.
There are different lenders with different rates. So do some essential comparison shopping
using loan comparison websites. After you have compared some lenders, contact a couple
of them and ask for a quote. They would take the information you provide and calculate
the interest rate and monthly repayment amounts, and send you everything you need to
know concerning that loan. Select the one with the lowest APR.
When you get the loan know that it is a great chance to rebuild your credit rating. Follow
the tips in Step 1 above and within 6-12 months you should see your credit score begin to
improve. Continue the process and over time, your credit score too will be close to
becoming excellent.
From that point forward after you've obtained an excellent credit rating, you can apply for
most loans and expect to get a low APR.
7. How to Get a Low APR Personal Loan
Visit our website right now for more tips to help you with
your personal finance issues. Go now to:
http://www.LendingAndCredit.net
To find out more. Thanks.