Posts Tagged ‘personal loans’

How To Get A Personal Loan (With an APR You Can Live With)

The consumer credit market may still be a little tight, but there are still many options out there for people in search of a personal loan. Regardless of your financial situation or the reason that you need a little extra liquidity to meet expenses, there are lenders who are willing to work with you; however, many of the loan options available come with a high annual percentage rate (APR) attached.

If you need a loan right this minute, then the following information may or may not help you right away, but these tips can help you to get much more favorable terms on a personal loan in the future.

Build Your Credit Score

As you probably already know, a higher credit score generally means a lower APR on any kind of loan. If you’re looking at taking out a loan sometime in the near future, the best thing you can do is to improve your credit score. It’s easier said than done, but all you need to do is to pay down any existing debt as much as you can and continue to pay your bills in a timely manner. In order to help keep your credit score higher, try to avoid applying for any credit cards, loans or other forms of credit that you don’t need – every time you do this, your credit score takes a small hit. If you’re trying to improve your credit to get a better APR on personal loans, every little bit helps.

Use a Co-Signer for Your Loan

Perhaps your credit just isn’t good enough at the moment to get a personal loan at the kind of terms that you’d like – or your credit score isn’t high enough to allow you to get as large of a loan as you need. In either case, having a co-signer may be the answer. Lenders will consider not only your credit score, but the credit score of your co-signer; provided that their score is higher than yours, you’ll usually be able to get a lower APR on a personal loan than you would otherwise be offered.

Consider Applying for a Secured Loan Instead of an Unsecured Loan

Even if your credit score is excellent, unsecured loans will still usually have relatively high interest rates. You can almost always get a better deal on a secured loan – one which involved collateral. For instance, the title to your car is one form of collateral, although almost any kind of property can be used as collateral provided that its value is high enough to secure the loan amount.

Shop Around

There are a lot of lenders out there, ranging from local banks and credit unions to nationwide lenders and online lenders. You have options and it would be a mistake not to evaluate your choices carefully. Different lenders may offer different terms on what is essentially the same personal loan, so doing some comparison shopping could end up saving you a lot of money in interest payments over time.