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Get low-interest rates on your credit cards, personal loans, and home loans

Home loans is much cheaper than credit cards and personal loans. This is mainly because home loans are secured against the mortgage value of the property.

Get low-interest rates

When you search for credit cards or loans, the most important thing you look for is the interest rates on these products. Most people look for the lowest possible interest rates when they borrow money from a lender. Credit cards and personal loans are high-interest products due to the unsecured nature of the loan. Home loans, on the other hand, can be obtained for a much lower interest rate. No matter what the loan product is, people often look for ways to bring down the cost of these loans.

If you are wondering how you can get low-interest rates on your credit cards, personal loans, or home loans, this article is just for you. The tips given here can help you find the best product within your affordable range.

General tips on lowering interest rates

There are plenty of banks and non-banking financial companies operating in the market. There is intense competition among these lenders, and the costs of various loan products have come down significantly already. However, there is still a chance of getting even better deals on interest rates. The general tips listed here can help you find the best deals in the market:

  • Bargaining: Lenders typically don’t have a fixed interest rate for everyone. This applies to both personal loans and home loans. In most cases, lenders fix interest rates based on various factors like the applicant’s income, credit score, job stability, age, location, etc. This gives an avenue for borrowers to negotiate on the interest rate charged for their loans. You can contact your bank agent and bargain for a lower interest rate.
  • Credit score: Your credit score plays a major role in determining the interest rates for your loans. You can get a great deal on the interest rates on your credit cards and loans if you maintain a good credit score. If your financial profile is good, it could help you negotiate better with the lender.
  • Browse the market: This is one of the best strategies for bringing down interest rates on loan products. As noted earlier, the market is flooded with loan products and credit cards from various lenders. You need to check out the offers from various financial institutions to find the best one suitable for you. When you compare different products, you can find the best deal on interest rates.
  • Repay your existing debt: Lenders are likely to find you more credible if you don’t have any other debt burden. Hence, it is necessary to clear all your debts before you apply for a credit card or a personal loan. In this way, your credit repayment history will also be good enough for getting a new loan.

Credit cards

The interest rates on credit cards can sometimes be as high as 42% p.a. If you follow the above-mentioned best practices, it is possible to get a great deal on the interest rate of your credit card. The interest rate is exceptionally high when you withdraw cash using your credit card. One of the best things about credit cards is that there is an interest-free period on the money spent. If you repay the outstanding amount within this period, no interest amount is charged. Hence, it is better to pay your balance on time rather than worrying about the high-interest charges on credit cards.

Personal loans

Due to their unsecured nature, personal loans typically come with a high-interest rate. However, the interest rates are much lower than the rates charged for credit cards. Most lenders charge an interest rate of 11% to 22% p.a. for personal loans. The exact interest rate is determined on a case-by-case basis depending upon the borrower’s credit history, income, age, loan amount, loan tenure, etc. Hence, getting a good deal on personal loan interest rates has a lot to do with your negotiation skills. If your credit score is not that great, you may get a co-borrower to serve as a guarantor for your loan. This could help you bring down the interest rate.

Home loans

The cost of home loans is much cheaper than credit cards and personal loans. This is mainly because home loans are secured against the mortgage value of the property. If you follow the general tips listed above, it is possible to bring the interest rates even lower. Again, your bargaining skills are crucial when it comes to bringing down the interest rates on home loans. It also pays to have a good relationship with the bank. If you are already a customer, you can use this as a negotiation point with the bank and get a significant discount on your loans.

Conclusion

When it comes to personal loans, home loans, and credit cards, there is no one-size-fits-all solution for everyone. You need to browse the market thoroughly to find the best product that fits within your budget. The interest rate is also likely to change based on whether it is fixed or floating rates. You need to evaluate everything during your research state when you are browsing for the right product. Getting a good deal on the interest rate can save you a lot of money. Even a 1% discount in interest rate can help you save a considerable amount when it comes to home loans and personal loans. Hence, it is necessary to follow all the tips mentioned here to get the best possible interest rate you can find.

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