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6 Inventive Ways to Reduce the Interest Rate on Your LoanOctober 12, 2017
Who doesn’t love a good discount? Whether it’s an opportunity to buy clothes at a lower price or an offer to obtain air travel tickets at a reduced rate, every consumer is delighted to pay a lesser amount to obtain a product or service. But what if I told you there are ways in which you can slash the interest rate on your loan too? Don’t believe me? Well, it’s possible - read on to learn how you can do this!
- Utilize Automatic Payment Facilities: When you set up an automatic payment mechanism for a loan, it reassures the lending institution that they will be getting their payment on time. Additionally, you are relieved of the responsibility of remembering payment dates. Moreover, you don’t have to struggle to get your payment through on time. If you have a personal loan, car loan or a mortgage, your bank may reduce your interest rate if you sign up for automatic payments, so check to see if this option is available to you.
- Approach Credit Unions: Local credit unions may be willing to lend at lower rates of interest compared to larger banks. But for this, you have to be a member of the credit union. To qualify for membership, you may need to reside in a particular area or work for a particular employer.
- Boost Your Credit Score: Typically, the higher your credit score, the lower the amount of interest you’ll be asked to pay on your loan. However, improving your credit is not an easy task and may require an investment of considerable time and effort. If you don’t have a satisfactory score, start by making delinquent accounts current. In order to do this, you will need to pay back past due debts, such as utility bills and credit cards. Next, lower your credit utilization ratio, or the amount of available credit that you’ve used, to below 30% of your total credit limit. Finally, ensure that you keep your oldest credit card accounts open, as the length of your credit history is another important factor that determines your score.
- Take Your Business to a New Bank: Sometimes, when you open a checking account with a new bank, they may offer you a better interest rate for your mortgage or car loan. Hence, this exercise can result in substantial savings in terms of interest payable. If you’re looking for a home loan, you can engage the services of a mortgage broker for this purpose.
- Debt Consolidation: You can try consolidating your higher interest debts into a personal loan that will charge a lower rate of interest. Usually, higher interest loans consist of credit card debt, so for this strategy to work, you’ll need to ensure two things. Firstly, you must stop racking up more debt, as that would defeat the entire purpose of debt consolidation. Secondly, you must not link the consolidated loan with a second mortgage or a home equity line – this is because in case you’re not able to repay the consolidated loan, you’ll end up losing your house.
- Consult Our Team at Fund&Grow: At our organization, we help individuals with good credit receive $50,000 - $250,000 of unsecured credit at 0% interest for a period of 6, 12 or 18 months. For a small fee, our team not only tells you how to apply for the loan but also takes care of most of the paperwork for you. Using creative credit card financing solutions, we help you get funds that can be used for financing a business or even meeting the down-payment requirements for a property. It may sound unbelievable, but it’s true. All you need to do to take advantage of this opportunity is call us at (800) 996-0270 and we’ll take care of the rest!