Credit agencies offer personalized interest rates
How to Get the Best Interest Rates
13:18 16 June 2014
Interest rates are a percentage gain either against you, in case of a loan or to your benefit in case of a saving. It is therefore very essential to carefully know when to go for a high rate and when to opt to go for a low rate.
Choosing the best interest rate will vary depending on the situation. In case of a loan, the best interest rate will be the lowest available rate. This is because you will need to save on the amount you add onto your principal loan and this is the minimum amount you can get in the market. In case of a savings interest rate, the best rate will be the highest percent of your principal deposit that you can get. This is because it will earn you the maximum interests to be added to your money.
How to get best rate on a loan:
- Get the best lender. Rates vary across lenders, therefore the first thing you need to do is to shop widely for the best lender.
- Ensure you have an excellent credit score. The better your credit history is the better interest rate you can get. People with a poor borrowing history are imposed a heavy repayment rate.
- Consider the type of loan. You can get two types of loans for most lenders, a fixed rate loan and an adjustable rate loan. A fixed interest rate will be beneficial if interests rise since it will remain the same but you will be stuck with high rates in case the interest rates fall.
How to get best interest rate on a saving:
- Get the best lender. Rates in savings also vary widely depending on lenders as well; ensure you go for the best provider you can get before opening a savings account.
- Make a deposit over a long period of time. Lenders are more willing to give savers who choose a longer period of saving the money a higher interest rate.