Cheap loans are more difficult to find than they were a few years ago. However, it is still possible to get lender acceptance. Regardless of whether you are applying for an unsecured or secured bank loan, the same fundamentals are applicable. The following advice will help you to get approval for a cheap fixed rate loan deal.
How to get approval for cheap APR loans
Do not make too many applications
It is essential that you target your applications for the cheapest loans. Each time that you apply for a loan, mortgage or credit card, a search is performed with credit reference agencies and this will be recorded for the next 24 months. Read through the terms of the offer
Lenders go to great lengths to specify whether you are likely to qualify for one of their loan deals so heed their advice. Make sure that your credit profile is a match because you may find that you must not have been rejected for a loan within the last 30 days. Use a price comparison website
A site, such as Moneysupermarket.com, enables you to trawl through cheap loan rates based on a list of criteria specified by the applicant. This enables you to avoid scrutinising the offers which are not relevant to your needs. It is easy to get a low secured loan rate when you have excellent credit. However, you need to be more selective when your credit rating is classified as being fair.
Credit repair tips before applying for money loans
Erroneous information on your credit report
If you have not already verified the accuracy of the information that credit reference agencies hold about you, it is essential that you check for mistakes. Under the Fair Credit Reporting Act, you have an entitlement to a copy of your report once a year. Scrutinise your credit report and get any mistakes corrected before you submit a credit application. Reduce your level of indebtedness
The amount of money that you owe creditors can be detrimental to the likelihood of acceptance. If you do have money earning a minimal amount of interest in your checking account, use this to reduce the amount of money that you owe your creditors. It will not only save you money on debt interest, it will make you appear less financially exposed. Distribute your debt across several credit cards
It may be easier to manage debt when it is on a single card, but this could be detrimental to your credit rating. Regardless of whether you settle the balance, it is better to avoid spending more than 30% of your credit limit in one month.