Borrowing money is almost always a fact of life. You may need to borrow money to buy a car or to purchase furniture or items you want. You likely need a credit card to use for emergencies. You may want a loan to start a business. If you are going to buy a house, you almost surely need a mortgage. In any situation, you should look for the best loan deals and cheap loans so that you can save as much money as you can on you debt cost.
In most cases, secured loan options are going to provide you with a lower interest rate than unsecured debt. Secured debt means that there is some tangible type of collateral that secures the loan and that the lender can repossess and sell if you default on your obligation. Since there is less risk to the lender for a secured loan, you can almost always get lower rates on these than on unsecured debts. Examples of secured loans that provide lower rates include a homeowner loan that taps into your home's equity, or a car loan. The interest rates on these are going to be lower than the interest rates on credit cards in almost every case. As of 2011, in the US, loan rates for mortgages are at the lowest they have been in generations. This means that as of 2011, you should be able to get a conventional mortgage loan for under five percent as long as you have good credit.
Credit card balance transfers
Credit card balance transfers and promotional rates can provide you with the best option if you are not interested in the best secured loan. Credit cards are unsecured debt and although the interest rates will be higher on most credit cards than a cheap home loan, your house is not at risk when you take on this kind of debt. You can usually get zero percent balance transfers that charge no interest for anywhere from six months to one year.
When exploring loan options and looking for a low APR loan, be sure to explore all options. Credit unions or peer to peer lending networks may offer you the best rate loan.