The latest applicant is looking for tips for borrowers applying for an unsecured loan. They live in Fresno California and would like to borrow $30000 using an unsecured loan to consolidate credit card debt and some other small debts that they have. They have a good credit rating, good jobs with decent income and their home is almost paid off. They appear to be excellent candidates for an unsecured loan. As part of their application they have asked for some tips which we will cover in the following paragraphs. There are 9 areas in total that consumers should pay attention to when looking for unsecured loans.
Check your credit rating – know what your rating is before you apply to make sure that you are even eligible for low interest loans.
Check beyond the headline interest rated posted – if the bank is advertising an interest rate, this will be the headline rate. Many consumers will be eligible for even lower rates and they should ask if this is the best rate available.
Check the competition – shop around for the best deal. Be careful to not overdue it since each time your credit rating is checked, it will be registered and could impact your rating. Never the less you want to find the lowest rate.
Check for Alternatives to loans – would a 0% credit card work, what about your savings and can you delay the purchase until you have sufficient money saved for the purchase.
Anything but Payday Loans – payday loans are notoriously expensive in terms of fees and interest rates. Avoid payday loans and reduce your cost.
Does Loyalty Pay – always check with the bank you deal with, but do not stop there. You may be surprised that a competitor will offer a better rate to obtain your business.
What is the Term of the Loan – A longer term means you pay more interest overall and you also have a lower monthly payment. If you can, take a shorter term, pay less interest and pay off the loan more quickly.
Can you Fix Your Rate – a variable loan rate can mean increased interest costs if interest rates rise. Fix your interest rate for the term of the loan to manage your costs.
Avoid Payment Protection Insurance – or at least shop around for a lower cost PPI if you feel that you really need it.