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How to Get the Best Deal on a Loan

Completing school, starting a business, building a home, and buying a car are just some common life goals. While it would be great to have the money to support your goals and fund all the things you want to do without worry, you know that it’s not as easy as it sounds.

Money, or the lack thereof, can become a hindrance for success. This is why sometimes it’s helpful to get some financial assistance to keep moving forward and eventually achieve your life goals. A personal loan can give you the flexibility you need to help support your lifestyle.

Before considering any type of loan, you must know the basics so that you can best decide what loan is best for you.

In this post, we’re sharing some important information you need to know when taking out a personal loan, as well as how you can get the best deal on a loan.

What exactly is a personal loan?

A personal loan is a fixed amount of cash that you can borrow to meet your individual needs. This money is then paid back to the lender in instalments over a set period and with a fixed amount. The concept is similar to the “borrowing” concept we’re all familiar with: you borrow a certain amount of money and pay it back later. During the lifetime of the loan, interest is charged since this is how the loan providers make their money. Personal loans are offered by banks, online lenders, and credit unions.

For more information, read our article ‘9 Good Reasons to Get a Personal Loan?‘.

What are some good reasons for a loan?

A personal loan can be used for paying medical bills, financing a home renovation, buying a car or a boat, planning for a dream wedding or grand vacation, building a business, and so much more. While a personal loan can be used for almost anything, there are some good reasons for borrowing that are more likely to be accepted than others.

So if you’re planning to get a loan, read our previous post on ‘9 Good Reasons to Get a Personal Loan‘.

signing a loan document

How to choose the right personal loan provider?

Finding a lender that can be easily trusted is important. Since taking out a cash loan is a serious financial decision, many people spend a bit of time finding a loan provider that is legitimate and reliable. Make sure to check the reputation of the financial institution first and ensure that the lender is duly registered with the government’s Financial Service Provider Registry. Also, pick a lender who is easy to deal with, willing to disclose the actual cost of the loan, and offers quick and convenient cash loan options.

Here at QuickCash, we focus on providing easy, reliable, convenient, and instant loans with no hidden charges and extra fees.

How to get the best deal on a loan?

After choosing a reliable personal loan provider, make sure to know how you can get the best deal on your loan. Here are some crucial factors that you need to consider.

Have a good credit rating

This rating uses your credit history to check and estimate if you’ll be able to pay back the money you’re borrowing. Remember that the higher your credit score, the better your chance of being offered a lower rate of interest on a personal loan.

Improve your credit score

To get the best loan rate, try taking some steps to improve your credit score and make it the best that it can be before you apply for a loan. You can do this by using your credit card little but often (and paying it off on time), keeping your credit utilisation low, fixing mistakes on your credit report, getting on the electoral register, paying your bills on time, and avoid making multiple credit applications in a short span of time.

Shop around for the best rate

Each loan provider will make a different decision when giving you a loan. Hence, try not to get carried away and take out the first loan being offered. Some lenders offer a much higher rate of interest than others, so it’s worth shopping around before you commit on a loan.

Keep in mind that loans aren’t just about interest rates, so it’s worth learning about the other features of loans. For instance, are there handling fees or hidden charges that you may have to pay or will the lender let you pay back the loan early if you request it? These things may make certain loans more expensive than others so it’s always a good idea to compare various loans first.

approved loan manager

Try a short-term loan

Short-term loans help alleviate immediate financial binds by providing you with quick cash to cover debts and expenses. Typically, short-term loans are easy to get, have lower interest rates, and offer flexible payback options compared to a debt consolidation loan or a business loan.

Ask for a better loan deal

After you’ve done your research on the current loan rates by trusted lenders in the market, you can start negotiating for a lower loan rate. With your new knowledge of who is currently offering what loan rate in the marketplace, you can negotiate with your lender with confidence and discuss the situation with more authority.

To succeed in negotiating for your loan, take the time to sit down and read the charges or fees outlined by the lender carefully before discussing this with them again.

How should you repay your loan?

Are you paying your bills late? Do you lack a budget or savings? These are just some of the tell-tale signs that suggest you might have a major debt problem. It can be helpful to re-evaluate your situation when applying for a new loan.

Remember, forgetting to pay your loan on time can damage your credit rating as it suggests to lenders that you are struggling to manage your credit well. To avoid defaulting on loans, it’s useful to avoid borrowing more than you can realistically repay. You can also set up a direct debit to pay your loan on time and ensure that your credit score will not get a bad rating.

Final thoughts

Whether you’re completing your studies, renovating your home, or just trying to pay off other debts, many people without the necessary cash flow find that a personal loan can help them to support their finances. It’s also helpful to stay well-informed so that you can make the right financial decisions.

Looking for a personal loan? At QuickCash, applying for a personal loan is convenient, fast, and easy. Contact our support team on 0800 784 252 or browse our website to learn how you can get the best deal on your loan.

Disclaimer: This article is intended to provide general information only. It does not take into account your financial needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser.