The turn into the 21st century brought with opportunities that cannot be quantified or measured. Looking back 20 years ago today, I can't just believe how easy it is to get access to credit. Even mobile telecommunication services are offering advance on air time which you can pay later. Completely unbelievable!!
With interest lending rates on the downtrend, banking institutions on the other hand are busy 'hawking' credit loan facilities and cash advance to willing customers. Better still, they are at hand to offer debt consolidation. (This entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.)
The big question however is.
Do people have bargaining options when it comes to taking a loan? First of all, Interest only is NOT a good idea. If your credit scores are that good, look to other loan types. Beware of those "lower" rates. Always go with a reputable lender. It's not so much a matter of bargaining, but more of comparison shopping. You can comparison shop for loans the same way that you would for anything else. Let this quote "when the deal is too good, think twice" be your guide in doing a comparison for interest rates
There are various categories of finance that are accessible to a customer depending on the need.
* Home loan
* Personal loan
* Auto loans
* Student loans
* Emergency loans
With the unsecured loans being the way to go it today from the previous secured loans, its better to prepare for it beforehand.
Tips to better loans
Loans are often borrowed to meet the unforeseen expenses. Here are some light on factors to be kept in mind while going personal loan way.
1. Do I really need it?
2. Can I manage without a personal loan?
3. Is it for a frivolous expense- like a holiday- that I could really avoid?
4. Is it possible that I could secure the money by other means- like borrowing from a relative, taking up a part time job, sale of an asset? If you can avoid it, then don't take the monkey on your back!
5. Work out the total price tag of your loan before committing. It's a mistake to only care about the interest rate.
6. Keep your credit-line as small as possible.
7. Don't put your home at risk by getting a home equity credit line to pay off your credit-card debts.
8. Shop for rates when the market is calm. Rates change from day to day, so compare lenders.
9. Only pay up-front fees to well-known institutions
Always keep in mind:
* The amount that is to be borrowed.
* The interest rate.
* Loan repayment term.
* Associated fees or costs-(broker fees, prepayment fees, origination fees).
* The insurance that the lender would require
You are buying money for more than it cost the lender. Simple.
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