When it comes to finding the best finance deal for your needs, you need to be active in finding this deal. No one is going to come to you with the best deal and equally, other people don’t know you or your circumstances. This is why there is a lot to be said for being proactive in carrying out research when it comes to finding the loan that is best for your needs.
Review Your Credit Rating
If you are looking to apply for a loan you’ll find that your credit score and history are very important factors in the process. A good credit score will improve your chances of receiving a more attractive rate of APR, which has to be seen as a good thing. There is also the fact that if you have a poor credit score or you are deemed to be a risk, you may find that you will be refused when applying for a loan. This means that spending some time reviewing your credit rating and report makes sense.
If there are mistakes on your credit score, you may find that these count against you, so it makes sense to ensure that everything is true. If there is something that is true and harmful to your credit score, you need to take steps to improve it in the long term but if there is something harmful and incorrect, you need to report it as quickly as you can.
Don’t be bewitched by the Headline Rate
The headline rate is there for a reason and it is to catch your eye or draw people in. It is only natural that you will be drawn in by these figures but you need to be aware that this rate may not be provided to you.
The headline rate will only be applied at certain levels, perhaps within a lower and upper level of borrowing, so you may not be able to achieve it anyway. There is also the fact that the headline rate is often the representative APR and this isn’t provided to everyone. In fact, as long as the company provides this rate of APR to 51% of borrowers, it can be classed as a representative APR. This means that the 49% of borrowers may find that they are charged a much less appealing rate of APR.
Don’t feel as though you have to choose one company because you have other accounts with them or you have used them in the past. There is no loyalty in the finance industry so make sure you review all of your options and find the one that is right for you.
The bigger companies have a bigger advertising budget, which means that they can attract more people to them but this doesn’t mean that they are the best companies to borrow from or that they will provide you with the loan offer that is best for your needs.
Even if you don’t have a lot of time to find your ideal loan, you need to allocate some time to looking into your options and the finding the lender and loan option that suits your needs in the most effective manner.
Are there Alternatives to a Loan?
As well as looking at as many loan options as you can, you should also look at options that aren’t loans. It may be that there is a credit card option that suits your needs best or a store credit option. This won’t always be the case and many people find that a loan is indeed the best option for them, but don’t come into the situation thinking that only a loan will provide you with what you are looking for.
It may be that a guarantor loan will provide you with what you are looking for. This is a way to obtain an affordable and attractive loan if you have bad credit, so it is definitely something worth looking into. The presence of a guarantor provides the lender with a greater degree of confidence regarding your ability to pay back a loan, so you can see why this should be of benefit to you.
Taking the time to think about what you need and what you want to achieve with a loan will go a long way in ensuring you receive the best possible deal.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.