A personal loan must avail in case of financial emergencies. However, it is challenging to get a loan with a low-interest rate and feasible tenure. Therefore, finding the best price is an absolute must!
All you can do to avail a personal loan as per your convenience is consider several factors before applying for one.
Here are a few to help achieve the best interest rates:
Ensure a good credit score
Your good credit score is proof of your credibility in the market. It speaks about your credit utilization and how you’ve managed it in the past. The higher your score, the better! A score of 700 to 750 is preferred and termed as the right candidate. However, if your score is 700 to 900, there is nothing to worry about that. To achieve this goal, you must make all your payments on time and continue to keep a bright credit history.
Look for seasonal offers.
Seasonal offers are usually conveyed through SMS and email to match the competitive offers of other banks/ lenders. Keep a note of these offers, and you can make your loan more affordable. The benefit of these offers is that you get limited period discounts on interest rates, mostly during the festive season, which further helps you cut down repayment expenses.
Use your professional credentials.
If you are working for a reputed public or private organization and have a high remuneration, you can be term as a stable candidate for the personal loan. Thus, with your professional credibility, you can negotiate for a lower rate of interest. Why do you ask? Because the company’s reputation can vouch for your timely payments.
Use the Interest calculation method.
Before availing a personal loan, you must analyze and understand the Interest calculation method thoroughly. According to this method, the lender will give you a flat or low-interest rate. The flat interest rate payment calculated as per the full loan amount. However, the reducing interest rate payment calculated as per the outstanding principal. In the latter option, EMIs help in reducing the principal amount.
Your employment history
It is an essential criterion that inspected before sanctioning the loan. The lender/bank requires you to have worked for at least two years minimum, including a year with your current employer. Your work experience and the reputation of your employer may help in favor of availing comparatively low-interest rates in the market.
Compare interest rates
That goes as a mandatory step to make sure you pick the right one that best suits your needs. Make sure you have a fair comparison and take a look at other developments as well to decide.
Getting a low-interest rate is a make or break situation. Even the minutest financial misbehavior can affect your credit score. Therefore, Make the most of it at the earliest!