London Loans Lender are the vital part of our financial lives and you cannot skip them. Some day they are going to show their importance in any possible way. From a small requirement to a long-term purpose, whatever is your need, loans are necessary to support your dreams and desires.
One of the most important factors loan companies check in your finances are income – ‘outgoing ratio’. And for you as a borrower, one of the most important aspects of loans are the ‘interest rates’. More income less expenses and you get funds on lower rates, but more expenses less income means you need to pay higher rates.
Here are some ways to balance the imbalance of income and outgoing to get the best possible interest rates.
Do strict budgeting and deduct unnecessary expenses
You have to show to the lender that your finances are under your control and for that the outgoing, should not dominate the income. Make strict budget, keep record of every penny you spend and do not do the useless spending. Weekend parties, amusement park etc. are fine but they should be done with limit.
Pay debts/expenses on time
The lenders want to see how responsible you are in your financial behaviour. If you pay your bills and debts on time, your credit rating remains high and to such applicants, the lending companies always provide a lower rate of interest. In fact, few lending companies give special discounts too for instance – loan palace, new horizons, cash float are some of the names.
Request for a credit card rate reduction
Paying more on credit card dues despite the possibility of a better and cheaper option is not smart. Credit cards are higher in rates and thus the instalments are big. This shows a big expense in your income and that may make the lender do not consider you for a lower rate.
Do two things here –
- Talk to your credit card company and ask for a rate reduction
- If rate reduce is not possible then switch to other card with 0% balance transfer
Get your debts consolidated
Having multiple financial obligations on different rates can adversely affect your chances of getting a lower rate. Many instalments make the lender feel that you are bearing the burden of multiple debts. This makes you less creditworthy. Consolidation of debts facilitates one instalment on fixed rate. This leaves more space to adjust another instalment of a new loan.
The above ways can actually help you have a better deal of loan with lower interest rates. Stay creative and try your own ways too. After all, the ultimate goal is to get a cheaper deal.
Description – Learn the smart ways to create a balance between income and expenses to get a lower rate of interest while you apply for a loan.