personal loan

Tips to get low interest rates on your credit cards, personal loans, and home loans

When you search for credit cards or loans, the most important thing you look for is the interest rates on these products. Most people look for the lowest possible interest rates when they borrow money from a lender. Credit cards and personal loans are high-interest products due to the unsecured nature of the loan. Home loans, on the other hand, can be obtained for a much
lower interest rate. No matter what the loan product is, people often look for ways to bring down the cost of these loans.

If you are wondering how you can get low interest rates on your credit cards, personal loans, or
home loans, this article is just for you. The tips given here can help you find the best product
within your affordable range.

General tips on lowering interest rates
There are plenty of banks and non-banking financial companies operating in the market. There
is intense competition among these lenders, and the costs of various loan products have come
down significantly already. However, there is still a chance of getting even better deals on
interest rates. The general tips listed here can help you find the best deals in the market:
Bargaining: Lenders typically don’t have a fixed interest rate for everyone. This applies
to both personal loans and home loans. In most cases, lenders fix interest rates based on
various factors like the applicant’s income, credit score, job stability, age, location, etc.
This gives an avenue for borrowers to negotiate on the interest rate charged for their
loans. You can contact your bank agent and bargain for a lower interest rate.
Credit score: Your credit score plays a major role in determining the interest rates for
your loans. You can get a great deal on the interest rates on your credit cards and loans
if you maintain a good credit score. If your financial profile is good, it could help you
negotiate better with the lender.
Browse the market: This is one of the best strategies for bringing down the interest
rates on loan products. As noted earlier, the market is flooded with loan products and
credit cards from various lenders. You need to check out the offers from various financial
institutions to find the best one suitable for you. When you compare different products,
you can find the best deal on interest rates.
Repay your existing debt: Lenders are likely to find you more credible if you don’t have
any other debt burden. Hence, it is necessary to clear all your debts before you apply for
a credit card or a personal loan. In this way, your credit repayment history will also be
good enough for getting a new loan.
Credit cards
The interest rates on credit cards can sometimes be as high as 42% p.a. If you follow the
above-mentioned best practices, it is possible to get a great deal on the interest rate of your
credit card. The interest rate is exceptionally high when you withdraw cash using your credit
card. One of the best things about credit cards is that there is an interest-free period on the
money spent. If you repay the outstanding amount within this period, no interest amount is
charged. Hence, it is better to pay your balance on time rather than worrying about the high
interest charges on credit cards.
Personal loans
Due to their unsecured nature, personal loans typically come with a high interest rate. However,
the interest rates are much lower than the rates charged for credit cards. Most lenders charge
an interest rate of 11% to 22% p.a. for personal loans. The exact interest rate is determined on
a case-by-case basis depending upon the borrower’s credit history, income, age, loan amount,
loan tenure, etc. Hence, getting a good deal on personal loan interest rates has a lot to do with
your negotiation skills. If your credit score is not that great, you may get a co-borrower to serve

as a guarantor for your loan. This could help you bring down the interest rate.
Home loans
The cost of home loans is much cheaper than credit cards and personal loans. This is mainly
because home loans are secured against the mortgage value of the property. If you follow the
general tips listed above, it is possible to bring the interest rates even lower. Again, your
bargaining skills are crucial when it comes to bringing down the interest rates on home loans. It
also pays to have a good relationship with the bank. If you are already a customer, you can use
this as a negotiation point with the bank and get a significant discount on your loans.
Conclusion
When it comes to personal loans, home loans, and credit cards, there is no one-size-fits-all
solution for everyone. You need to browse the market thoroughly to find the best product that
fits within your budget. The interest rate is also likely to change based on whether it is fixed or
floating rates. You need to evaluate everything during your research state when you are
browsing for the right product. Getting a good deal on interest rate can save you a lot of money.
Even a 1% discount in interest rate can help you save a considerable amount when it comes to
home loans and personal loans. Hence, it is necessary to follow all the tips mentioned here to
get the best possible interest rate you can find.

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