Getting a loan is expensive in more ways than one. A lot of people do not realize it when they get their first loan, whether a small business loan or a personal loan of some type, but loans cost money. They cost more money than interest as well. Fees of all types figure in to the equation, as well as points and penalties if you are not careful. How can you can save money on a loan? There are no coupons in the Sunday paper, but it is possible.
The better your credit is the better luck you will have with this, but the number one key to lowering the cost of a loan is to shop around. Compare loans that you are eligible for from more than one lender. Look at interest rates and fees, and determine which one will be the most cost effective for you. Even if your credit isn’t great, do not settle for the first loan you are offered.
If your credit isn’t great you may think you are doomed to the highest interest rates offered. That may not be the case. Prepare all the information you can that shows you are paying what you need to pay on time despite past issues. This can include letters from utilities and creditors. Also, get a copy of your credit report and review it for mistakes. If you can clear some negative marks you may be able to lower your interest rate a few points.
Dig In to the Details and Negotiate
Do not neglect the fine print. Find out exactly how much you are paying and how it breaks down. Know ever fee that is being tacked on. Do this for each and every loan so that you can make an apples to apples comparison, and then open negotiations. Good credit will help in this endeavor. Lenders will sometimes have vague and unnecessary fees in the fine print that can be easily reduced or removed when pushed.
Play the Competition Card
If you have several quotes, use them to your advantage. See if you can get a lender to beat a competitor’s loan price.
Discuss Referral Discounts
If you find a lender that offers service and prices you are pleased with, ask about referral discounts. Sometimes certain ambiguous fees or even interest rates can be lowered if someone is approved for and takes a loan based on your referral.
It is easy to forget that loan hunting is shopping just like shopping for a car or a home. Never accept the first offer as the only option. Biz2Credit can help speed the process by connecting you with lenders from our extensive network quickly and efficiently. Visit Biz2Credit.com today to find out more.