Saturday, 30 June 2012

What are the tricks to get unsecured personal loan at affordable interest rate?

In case of an unsecured personal loan, the borrowers are not required to provide security deposit against the loan. Unlike secured loan, the borrowers are not exposed to the risk of losing their valuable assets if they default on their payment. Generally, the interest on the unsecured personal loan is high as there is high risk associated with lending money to a borrower without collateral. You might be wondering whether lowest personal loan rates are possible. So here are a few effective ways to get unsecured personal loan at affordable interest rate.

1. If you are planning to get an unsecured personal loan at affordable interest rate then make sure that you maintain a good credit score. Maintaining a good financial report will help you get an unsecured loan at lower interest rate. The creditor might check your credit report before approving your loan application. The lenders will consider you high risk borrower if you have low credit score along with poor credit report. In this situation, your application for low interest personal loan might not be approved.

2. Try to apply for unsecured personal loan at the bank where you have opened your savings account. If you have maintained good credit report then some banks offer preferential treatment for their existing customers. 

3. Check different websites of the banks in your area and compare the rates offered by various banks. If you shop around for loan rates then you might be luck enough to get lower rates on unsecured personal loan. There might be online lenders who might be willing to offer loan on lower rates to borrowers with good credit report.

4. If you do not have good credit score then get a co signer with a good credit history. Once your kin signs on your behalf, your rate of interest on the loan will be determined on the basis of his credit report. The creditor will provide you loan on the basis of his credit report, therefore if you default on your payment your co-signer's credit will be blemished.

5. You can negotiate with the bank manager to lower the interest rate on your unsecured personal loan. It will be easier to convince the manager to lower the interest if you provide evidence that you exercise financial discipline and maintain a good credit history.

6. You can approach your friends or family to give you loan. Your relatives or close friends might not even charge interest on the loan amount. If you have poor credit score then approaching your relatives for loan can be a good solution to your problem. Therefore, these are six effective ways to get loan on affordable interest rate that will help you avoid burning a hole in your pocket.

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