COVID has been challenging for most people as unprecedented job losses, and business closures continue to disrupt an already suffering economy.
For those affected, financial backing from bank loans and alternative sources can be a lifesaver.
Still, you want to get the best interest rates ever so that you don’t struggle with per-month payments.
Below are tips to lower your interest rates.
- Discuss the Interest Rate With Your Lender
It would help if you are first familiarized with lender interest rates to negotiate a reasonable deal. Find out if the lender has lower rates than their offer, or whatever you’re paying.
If they charge different interest rates based on the account type, you can consider shifting if you’re eligible for that specific account.
- Be Close to Funding Partner
Being close to your funding partner can increase the likelihood of a fairer interest rate. It can also help you negotiate a manageable loan settlement term.
In exchange, lenders will willingly grant these offers as their loyal client is a trustworthy borrower.
Avoid rubbing shoulders or dodging your debt as this can ruin relationships, taint your name, and ruin your chances with other lenders.
- Monitor Your Credit Score
Low credit scores and high-interest rates go together, so you want to maintain desirable credit to convince lenders that you’re a low-risk borrower.
Lenders are now more cautious with whom they fund, so you must prove your creditworthiness to get a loan, let alone a low-interest rate.
- Take Advantage of Your Employment History
Flaunting your two years of employment can have a significant impact on loan interest rates.
A stable employment history proves that you are well-placed to make on-time debt payments without a hassle.
- Make On-time Debt Settlements
Payment punctuality is another factor lenders use to assess a borrower’s creditworthiness.
If possible, use automatic loan settlement to pall all loan commitments in reasonable time because you can easily get caught up and miss on payments.
- Compare Rates
Loans rates and their criteria vary from one lender to another, making “window shopping” an essential process in finding the best offer.
Spend time searching for a lender that will offer honest rates. Visit their site, see how other ranking sites rate them, and find out what other borrowers say about a lender before committing to a loan.
Loan management is an increasingly important tool for managing debt and maintaining cash flow in a weak economy. Follow the above best practices to enjoy lower interest rates.
Author Bio:- Michael Hollis is a Detroit native who has helped hundreds of retailers secure business loans. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.