Comparing Installment Loans How to Find the Right Lender for Your Credit History
The lender will want to know your credit score before they consider approving your loan application. The APR interest rate that you are assigned depends on the credit score stated on your credit report. The higher the credit score, the lower the interest rate you will qualify for. Having low credit score means that you will face difficulty in getting a loan. Usually, the interest rate you pay will be high if you get approved for a loan with a low credit score on your credit report.
The easiest way to find a loan that you are eligible for is to use a loan comparison search engine. There are many loans comparison search engine that allows you to compare loans across all major lenders. You will have to provide information like how much you want to borrow, loan purpose, zip code, name, telephone number, social security number, and employment status. It will want to know whether you own your own home or is a tenant. You will also have to provide an estimate of your credit score range for example, excellent, good, fair and poor. If you states self employed as your employment status, you will be asked to enter your annual pretax income.
The loan comparison search engine will show a list of lenders that will approve loans at your credit score range. You will be able to compare the interest rates at a glance and see which lender is offering the lowest interest rate. The interest rate should not be the only thing that you are paying attention when comparing the loans. You should also take into account other factors like repayment period, prepayment penalty, and loan origination fees.
Shorter repayment period typically means a higher monthly payment and you pay lesser interest in the end. Longer repayment period means lower monthly payment and you pay more interest in the end. You should always choose shorter repayment period if you can afford it as it helps you to save money on the interest and you also pay off your loan faster. You can always negotiate with the lender to reduce/waive some of the fees or lower the APR interest rate. It is also possible to negotiate with the lenders by to offer you a loan term that is better than the original loan term.
If you have been refused by the creditors due to having bad credit, you should try to improve your credit score instead of continuing to submit more applications. Lenders will see you as someone who pose risk to them if your credit score is bad. You will have to pay high interest fees to compensate for the high risk that the creditor faces by extending the loan to you.