Updated: Jan 24
Not many people are aware of this, but there are actually different ways for them to get a low interest rate on their personal loans. The thing is, some of the methods are not mainstream solutions. Nonetheless, they are still very doable, given that you know what to do from the start.
If you are curious about them, look no further than the following tips below.
1. Apply for a Personal Loan with a Friend as a Co-Signer
Not many people know about this, but if your friend has a good credit score, it means that their credit report can be used in your credit report. This is an excellent way for you to get a better interest rate for your personal loan because your friend will be pooling their credit score to yours.
This is possible because of a few factors, the most important of which is the fact that friends tend to have a lot of similarities. They have similar jobs, they have similar incomes, and they have similar credit scores.
As a result, when you apply for a personal loan, you are given a better interest rate on your loan using your friend's credit rating.
The best part is that your friend will not even have to pay anything. They will only have to cosign your loan and allow themselves to be an endorser of the loan. As such, they will only be subjected to the responsibility that comes with it.
2. Apply for a Personal Loan with a Family Member as a Co-Signer
If your family member also has a good credit score, why not use that as well? A lender would not deny a loan endorsed by a family member, especially if you have a good credit score.
The only problem with this option is that you will be forced to share your personal matters with your family. This could mean that your family will also have to be a co-signer of your loan.
3. Establish a Good Credit Score
Not many people know this, but if you are at the point where you want to apply for a personal loan, the first thing that you need to do is to establish your credit score.
If you want to establish your credit score, you must first acquire a credit card. Then, it would be best if you used it right the first time. When you do these two things, your lender will see that you are not a desperate person who is just using their credit card and hoping to receive a loan.
4. Apply for a Personal Loan Online
Another way to get a low interest rate on your personal loan is to apply for it online. This is because a lender willing to lend to you in your time of need will be glad to lend to you with a low interest rate.
At the same time, applying online allows you to have a quick turnaround of time. That is, instead of waiting weeks or months to receive your loan from an offline lender, you can apply on a website, and you can receive your loan within a few days.
With these examples, it is now clear that there are different ways to get a low interest rate on your personal loan, which is not something that many people are aware of. As a result, you no longer have to follow the mainstream methods of getting a low interest rate on your personal loan. Instead, you can choose to do something a bit unorthodox yet, still get what you need in the long run.
If you are looking for a trustworthy company that offers personal loans in Birmingham, AL, look no further than what we have to offer here at Mid-Town Finance Co. We have a variety of personal loan sizes to fit all your needs. We review our client’s available choices and put them on an affordable payment plan upon approval. Call us today and let us discuss all your financial options.