There are times when you’re faced with certain financial obligations that you find difficult to fulfil. In such times of cash crunch, the best way to meet the need of the hour is through credit, specifically Personal Loan. While this type of loan comes with a wide array of advantages including flexibility of use and easy repayment terms, it has one major drawback – high-interest rates.
Before we delve deeper into resolving the issue of high rates of interest, let us first understand why is it so? The first and foremost reason for the hefty rates is the unsecured nature of this loan. Besides, the profile and the credit history of the applicant also play a pivotal role in the determination of the interest rates.
While you can’t do much about the first reason, you can turn the tables for the second one. All you need to do is ensure that your credit score looks good. Once you take care of this fundamental aspect, merely hunting for better Personal Loan offers can do the trick. Let us lay down the tips for you in greater detail.
- Analyse Your History
If you think you have been better at managing your credit, than your account indicates, it might be right. Discrepancies in credit reporting are relatively common, especially when it comes to incorrect information being incorporated into the reports.
Hence, try and get your hands on your annual credo report’s copy and assess the same, carefully. In case you find any errors, you can dispute them. Even if there are no errors, you will know precisely where you’re faltering and can work on the relevant aspects to improve your score.
- Pay Your Bills
When it comes to paying your bills, make sure you don’t delay or miss any payments, whatsoever. To ensure this, you can either have reminders set on your phone or computer or merely make use of automatic payment facility offered by banks and e-wallets. The idea is to show financial discipline of the highest level, so that the credit lending agency, believes in your ability to repay, thus offering you Low-Interest Rate Personal Loans.
- Monitor Your Credit Score
Credit reports are helpful, but only to a certain extent, since they do not contain your actual credit score. However, there are numerous online tools that you can take help of to track your monthly credit score. The best part? Most of these credit monitoring tools are free. You can even rely on your bank or Credit Card company to help you with copies of credit score as an auxiliary service. Once you have access to these scores, it will be more than comfortable for you to devise strategies to boost your score.
- Evaluate the Alternatives
Now that your credit score is above the minimum mark of 700, you should ensure that you avail the best alternatives. In today’s times, numerous banks, non-banking financial institutions as well as online lenders offer Personal Loans at attractive rates. Make sure that you carefully compare each of their offers, to land the best deal.
You can choose to get these comparisons from a dedicated website, to make things easier. However, some sites are biased, and therefore, we strongly recommend, that you visit the official website of each lender to have a clear picture. In case, you still have some unanswered questions, feel free to get in touch with the customer care services of the lenders that attract you the most.
- Take All Charges into Account
While hunting for best Personal Loan rates, you may come across some offers that are accompanied by exceedingly low rates. More often than not, these offers are laden with additional charges such as process fee, prepayment charges, late fee and foreclosure charges. As you might have understood, these charges are designed to nullify the benefit you gain from low-interest rates. Hence, at the time of reviewing your options, make sure you give due diligence to all such charges and make them a part of your decision matrix.
Now that you are aware of some simple yet highly effective ways of ensuring low-interest Personal Loans, kick-start hunting for one right away! If your credit history doesn’t look as good as it should, then we suggest you wait for a few months, work on improving the same, and then apply for a loan. Remember, a low-interest rate a little later in time, will prove to be much better than a high-interest rate right away. After all, we have all heard the adage, “money saved is money earned!”
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.