The personal loan constitutes the consumer credit par excellence but also the most requested form of credit. However, it is a particularly expensive loan, to compare with the mortgage or even the other loans as known affected. However, there are tips that can help you get a personal loan at a good price.
Choose the right time to submit your request
It is never good to rush. If you want to take advantage of the best rates, you will have to be patient but also reactive. With stiff competition, credit institutions often offer promotional rates for a specified period. During these promo periods, rates can often be cut in half. Take advantage of these promotions to get the lowest rate. These time-limited offers nevertheless establish other conditions relating to the amount of the loan and the duration of the latter. For example, a bank can offer a personal loan of $ 4,000 over 12 months with a rate of 1% if you subscribe to this offer between such and such date.
Borrow more to pay less
Credit institutions are used to establishing levels to change the rates applied. Thus, for a loan of $ 2,500, the rate is 5%. However, from $ 3,000, the rate can be halved, or 2.5%. Borrowing a little more can be more attractive to reduce the cost of your personal loan. Be careful however because the amount of your loan must correspond to your needs but also to your borrowing and repayment capacity.
Take into account the administrative costs
Each credit institution sets their own scale to determine the application fees. As with the interest rate, credit organizations also change the amount of these fees relative to the loan amount. Thus, for a loan of 2000 $, the borrower must pay administration fees of 150 $, costs which disappear if the loan reaches 3000 $. However, these costs weigh very heavily on the total cost of the loan. Again, borrowing a little more can help lower the cost of your credit considerably.
Use comparison and simulation tools
Comparing offers is essential if you want to get the best deal. To do this, use online tools including the credit comparison tool which helps you sort through the offers and select the ones offering the best rates. To avoid surprises, you are also advised to establish a loan simulation beforehand. It will allow you to determine in advance the total cost of your loan and to adjust the loan formula best suited.