Tips To Find Best Loan Deals – ordinary citizens require at least three types of loans in a lifetime. A mortgage, car loan and student loan are the most common.
Want to Find Best Loan Deals?
Personal loans due to some reason is the next most common type of borrowing followed by business loans. Those who have good credit would always try to opt for secured loans as the rate of interest or annual percentage rate is the least in such loans.
Those who have bad credit would have fewer options and may have to rely on unconventional lending options.
It is difficult to attend to specific demands or needs so we are taking a generic route to provide you some tips to find the best loan deals. Adhere to these tips and you would always make better decisions.
Bank loans only for good credit
Always start with your bank. It doesn’t matter what type of credit score you have or what kind of loan you need. Your bank may not even have the provision to provide the type of loan you need but that doesn’t matter.
You should speak with your bank and ask what they can do for you given your circumstances and needs.
No one knows your financial health or otherwise better than your bank. A bank will always want to offer their financial products to existing customers as that is how they make money.
Operating the accounts doesn’t really generate much revenue for the banks. Those are actually a liability for most banks unless you have a business account.
Many alternatives to bank loans
Your bank may reject your request if you don’t meet the loan requirements or if the bank doesn’t offer the type of loan you need. Hence, your options are credit unions, financial institutions, private lenders, peer to peer lending networks and credit card cash advances.
Always try to work with a credit union if you can or a peer to peer lending network. In both these cases, you would get the most favourable repayment terms and the least annual percentage rate.
Financial institutions are likely to charge you dearly and so would your credit card cash advances. But there are some companies that offer secured and unsecured loans, to those with good credit and bad credit and yet they don’t charge hefty rates of interest.
You should ideally look for such companies, but not before you have tried your bank. Opting for a loan from your bank is the least risky choice, obviously after having considered the option of asking your family, friends or social network.