To get started one must understand that there are several types of loan available in the market . When you are looking for a low interest loan to repay a debt, for example, or to take a trip, the personal loan ends up being the best condition.
But in order to be able to secure the best rates it is crucial that you have a good repayment history, are not negative and able to repay the loan you are applying for. In addition, you should be aware that the financial institution will evaluate your score, your ability to pay the installments, and whether the documentation you submit is in the proper condition for whoever sends you a low interest loan proposal.
What is a good interest rate (and what is the difference in CET)
You may have seen a particular bank say it has rates starting at 3%, for example, but stopped to look at whether this was the CET (total effective cost) of the transaction, or if it was just the interest rate? Also, you need to know if the institution in question offers that rate to you as there may be differences according to the credit analysis.
Therefore, when finding out where you are offering a good interest rate, you need to consider the exact rate offered after your credit review. But calm down, you don’t have to place an order with every institution in the country to find out later.
To compare the rates of the institutions , it is possible to use data offered by the Peoples United Bank. On the agency’s website you can find out what the average rate offered by each institution over a given period of time. By comparing the average rates for the same type of credit, you can make a filter and only then start asking for your credit analysis.
When comparing the offers received from each institution, make sure they are informing you of their interest rate or the transaction’s CET, which already includes all transaction fees and charges. When you compare CET across institutions, you can find out where you really pay less for credit. And this goes for both personal credit and other financing.
What makes the interest rate / CET vary?
In addition to the bank’s own interest and rate policy, the Total Effective Cost of a personal loan or even a vehicle loan, for example, varies depending on the customer’s credit analysis and the payment option made.
Therefore, when comparing the rate offered between two or more institutions, it is important to consider the same data entered and the same payment terms (amount and number of installments).
Where to find the best rate
The best loan offer for you will depend on your credit profile and the type of loan you are looking for. Serasa eCred, for example, is a site that helps consumers find different lending companies based on their profile.
Borrowico is a company that offers unsecured personal loans with one of the lowest CETs in the market.
Tips To Get The Best Interest Rate
1. Make timely payments
One of the most common variables that financial institutions use for credit release is a person’s payment history. A past due account history can influence your credit rating, causing your interest rate to rise.
Thus, if you want to get a good interest rate at any financial institution, be it a bank, correspondent bank or even the online personal loan websites , it is very important to keep the accounts in order.
2. Settle Issues
If you have credit pending, this means that for some reason you have not paid back and you have debt in some company. In this case, you will have your social security number negated, which we popularly call “having a dirty name”.
If you have a bad name, you can hardly get loans from banks, and when you can, the interest rate will be very high (Check how to check if you have negative CPF ). The tip is to settle your backlog and then apply for a loan to get approved and get a good interest rate.
3. Provide the correct and updated personal data
It is essential that you identify with the correct and up-to-date data. If the information is not true or up-to-date, it may result in a delay in credit clearance or even in the denial of your loan application. If you expect good credit, you, as a borrower, must also do your part by providing correct information so that the analysis can be carried out smoothly.
4. Don’t let other people use your name and / or social security number.
“Lending Name” is a very dangerous practice as there is a great risk of “dirtying” the name. This term “dirty name” also means having your social security number negated (having some pending payment). Remember that having a bad name makes a loan difficult and also generates high interest rates.