How to get better interest rate on a personal loan?

personal loan

Have you experienced or heard of paying up a higher interest amount, when you actually have been committed a lower interest rate at the time of application? By the time you reach the end of the tenure, you’re already worked up.

As we already know that the interest rates are really high as compared to home loans and auto loans. Hence, the best to do is to apply for a personal loan and have the best rates of interest. This is irrespective of the other limitations.

Typically, before applying for a personal loan, different factors like the loan amount, the repayment capabilities, and the current company you’re working with. Below are the 6 techniques to get a quick loan at low interest rates:

Keep up a high credit score:

You can easily enhance your credit score by paying off the debt over a long period of time. A credit score over 750 allows you a higher chance of getting a good personal loan package. Here, we are listing out a few ways to maintain a high credit score.

  1. When you maintain a high credit utilization ratio (the ratio of how much credit has been utilized divided by the total credit limit) which is within the 30% bracket.
  2. By verifying your credit score at frequent breaks (when you make credit score enquiries with a specific credit bureau or online financial market place which are accounted as soft enquiries and therefore go unaffected on your credit score).
  3. Keep away from personal loans & credit card requests by focusing on secure proposals and striking a healthy balance between secure and unsecure loans.

Home Credit Personal Loan

In addition to this, you must keep your guarantor and cosigner account intact for timely repayment of loans to keep you should monitor your guaranteed or co-signed loan account to ensure timely repayment, because any delayed or skipped payments can negatively impact your credit score.  This is applicable for both the guarantor and primary borrower of the loan.

Work to build a good repayment history

Make an effort to pay all your bills fully on time and clear off debts on a monthly basis. You should also try to make payments for the regular EMI’s.

Also pay up for EMI’s of other loans, if there exists any. This helps substantially to get a good credit deal every time you need it the most. Obviously, if you’re EMI repayment is straight on time, then your chances improve to get an easy loan. This will also substantially help to bargain for reasonable rates of interest.

Compare interest rates & select the best offer

On the basis of loan eligibility & requirements, loan borrowers must opt to visit different online platforms and choose the best.
The idea is to select the best after conducting a thorough scrutiny of the available options, in terms of interest rates and lenders. At the same time, you must verify with the existing lenders who share a goodwill relationship by offering a low interest rate and good services.

So, whenever next you want a personal loan, apply during favorable times to have them at the earliest.

Read more: Tips to foolproof your Personal Loan Application

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