3 Ways To Lower The Interest Rate On Your Personal Loan
If you have a personal loan, you might think that you are locked into the interest rate that you have. However, it is possible for you to negotiate the interest rate on your loan. There are several things that you can try so that you can get a lower interest rate on your personal loans. You may need to try more than one option so that you can get the reduction that you are looking for.
1. Explain Why You Need It
One thing you are going to need to do is to explain why you need the reduction. You are going to want to do this in a letter, and send it as certified, making sure that you keep a copy for yourself. The reason that you want to do it by letter is that you want to create a record that you have asked for the rate reduction and why you want it. Sending it certified will require the bank or loan company to sign for the letter, so you have proof that they got it. You are going to make sure that you have a good reason, like your income being lowered. The bank really wants to get their money back, so they may be willing to work with you.
2. Discuss Your History
If you have a good history with the financial institution and/or a good payment history, you can point that out to the loan officers. They are going to be much more willing to work with you if you have already proven that you can make the payments or that you are willing to continue that good relationship you have with the bank, especially if you carry a monthly balance with the bank and don't go into overdraft on a regular basis.
3. Better Income
This one may not be one that you can go out and do easily, but if you have gotten a raise or you have gotten a new job that pays a higher income than you had before, you may be able to show the bank that you have a better ability to pay off your loan, which may cause them to lower your interest rate.
If you are worried about the interest rate that you got on your personal loan, there are things that you can do to help lower it. It's easier for you to negotiate before you get your loan, but you can still do it even after you've signed the papers.