A personal loan can be an important aspect of an effectively implemented financial goal. They can be used for consolidating debt, or for buying a large-ticket item that exceeds your available credit card limit - or it may be cheaper with it than a high interest rate credit card.

Naturally, your intent should be to apply for the cheapest personal loan that you can locate. Below are some basic tips to finding a cheap personal loan.

Be tactical
Maximize your options of being approved for a personal loan without damaging your credit by submitting multiple credit requests with various loan providers. Prior to applying, obtain a copy of your credit report. Understanding your credit situation will help you determine what personal loan products you are eligible for.

Research online and off for the loans with the best rates and terms
When doing your online loan shopping, you should take advantage of interest rate comparison sites like Bankrate.  Analyze the comparison charts as a beginning point for starting out. Then you can visit the listed lending institutions' websites and conduct some additional due diligence. Offline, a good idea would be to visit a few local banks and find out what rates and terms are being offered.

Check out a bank or lending source you already have an account with
If you have a bank account or are already conducting business with a lender, find out what kind of personal loan they can offer you. It is very common, especially for people with poor credit, to obtain consideration from a lending source that already knows them. However, it is important to note that this is step 3 and not step 1. Exhaust the first two options above before you go down this avenue. Doing so will allow you to determine if the loan being presented to you by your bank or the trusted lending source is actually providing you with a favorable loan. It is important to research the difference between online loans vs. bank loans.

Benefit from the lender's voracity
You can always make your application appear more appealing without providing false information. For example, every bank or lender makes a large amount of money on payment protection insurance (PPI). Therefore they typically will view loans from borrowers that request PPR as more favorably. When you apply for your loan, request a quote with PPI included. Once you obtain the paperwork, do not sign it. Instead return it unsigned and ask for a quote without the inclusion of PPI. Being that an approval has already been granted to you, it will be hard for them to  rationalize a denial based on an amended application. It is important that you act promptly, otherwise it will cost you.

Don't be influenced by APR
The annual percentage rate - APR - is the statistic that you are going to use as a gauge when comparing different loans. It is very important to note that banks will often influence the APR and make the loan appear less costly than it really is. Therefore, utilize the total amount repayable as an estimate if your biggest issue is what the overall cost of the loan is going to be as well as the monthly payment if you are concerned about your monthly budget. It is important that you understand how interest rates work before you apply.


Being a Wise Borrower
Personal Loan Scams
Unsecured Loan Tips
Obtaining the Most Optimal Rates
How Much to Borrow and For How Long?
Borrowing With Bad Credit
Compute Payments
Loan Shopping
When Refinancing a Loan Makes Sense
Are Unsecured Loans for Consolidating Debt a Good Idea?
Dangers of Debt Consolidation Loans
Bad Credit Unsecured Personal Loans for Getting Rid of Bad Credit
Loan Aspects to Avoid
What Happens If I Default?

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