Finding The Cheapest Loans

Finding The Cheapest Loans

Finding the​ Cheapest Loans
If there’s one thing it’s always worth doing,​ it’s shopping around for best deal .​
This is​ generally true for all purchases you’re going to​ make,​ but one place it’s more important than most is​ with loans .​
Many people don’t think about it​ too much,​ but loans are for many people,​ the​ single biggest financial transactions they’ll make in​ their lives .​
All the​ major purchases you’ll make will involve credit of​ some sort .​
If you’re buying a​ house you’ll be searching for a​ mortgage .​
If you’re buying a​ new car it’ll be auto finance .​
When you​ travel you’ll likely need a​ credit card if​ you​ don’t already have one .​
Remodelling your home,​ paying for college,​ for almost everyone,​ they involve a​ significant amount of​ credit .​
Shop Around
So it’s worth shopping around .​
If we spend a​ day or​ more looking for a​ good deal on​ a​ pair of​ jeans,​ why should we accept the​ first credit offer we receive? Loan rates and terms can vary enormously from lender to​ lender .​
All of​ them offer many different rates at​ the​ same time depending on​ the​ promotion you’re applying under .​
They will also be setting the​ rate according to​ your credit rating .​
The important thing to​ remember is​ that credit is​ a​ very flexible market and pretty much all lenders will be willing to​ negotiate rates and terms with you​ .​
You’ve Got to​ Haggle
For example,​ if​ a​ rate seems too high to​ you,​ simply tell them that,​ and ask if​ there’s a​ better rate available .​
Often their first offer is​ not the​ lowest they’re willing to​ lend at .​
Another thing you​ can do is​ offer security for the​ loan .​
If you​ own you’re home and are confident in​ your ability to​ repay the​ loan,​ maybe ask what the​ rate would be if​ it​ was secured over your home .​
You’d be surprised at​ the​ difference in​ rate you’ll get simply for offering security .​
If it’s a​ mortgage you’re negotiating,​ ask for both the​ variable and fixed rate .​
Typically the​ variable mortgage will be a​ good 0.2% to​ 0.5% cheaper .​
This is​ because you​ will be bearing the​ risk of​ an​ increase in​ interest rates .​
Auto finance is​ one of​ the​ most varying areas in​ the​ market .​
You’re dealer might be offering you​ what seems like a​ good credit rate,​ but often if​ you​ agree to​ pay cash,​ the​ price of​ the​ car becomes cheaper,​ which means the​ loan is​ actually more expensive than it​ appears .​
If this is​ the​ case,​ try and get the​ finance from another lender and get the​ dealer’s cash price for the​ car.
One other way of​ making a​ loan cheaper is​ by dropping optional extras such as​ loan repayment insurance .​
This is​ often offered when you​ take out a​ loan and can make a​ big difference to​ the​ cost of​ the​ loan.

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