There are many things you need to worry about when you are affected by a financial storm – meaning that you are seriously in debt or you have lack of emergency funds to pay off your bills. The most common way to overcome this is by getting low interest rate personal loans; but you are quite reluctant to get one because of high loan cost (or high interest rate) due to your low creditworthiness.
Therefore, your biggest ‘worry’ is that you might not be able to get an affordable loan and you need to bear the high loan cost.
Like what Ralph Marston had said earlier, “Instead of worrying about tomorrow, work for tomorrow”, instead of worrying of getting unaffordable bad credit personal loans, you need to work hard to compare as many bad credit loans offered from different lenders.
Here are a few effective tips that you can follow to get the ‘most’ affordable financial solution:
Tip #1: Prepare a checklist to get important things done on schedule
Have a daily routine of getting a list of non-traditional lenders from both off-line and online business directories. Then, jot down their contacts and start making inquiries about their low interest rate personal loan products. Next, jot down their current offers, and lastly compile review all information that you’ve obtained. Some have failed to get appropriate financial solutions because they have overlooked hard work and discipline to get things done on time. Always believe in delayed gratifications – you can only find a suitable lender when you’ve done enough research.
Tip #2: Determine the exact loan amount that you actually need and not the amount that you actually want!
It is unrealistic to borrow unreasonable large amount of money from non-traditional lenders. For example, let’s say you actually need about $10,000 to resolve your financial problems. Thus, you are borrowing a 12-month $10,000 loan with 7% interest – total amount repayable is approximately $10,383.21 and the monthly repayment is $865.27 per month.
However, if you’re borrowing slightly more than that amount – let’s say $11,000 – just a thousand dollar difference, with the same loan term and interest rate as above, total amount repayable is $11,421.53 with the repayments of $951.79 per month.
Based on that comparison, if you could only allocate less than $900 per month for repayments – then, borrowing a thousand less can really make a difference in terms of affordability.
So every dollar counts – not to mention about the one-thousand dollar difference of the loan amount, and it’s best that you opt for lower loan amount if you couldn’t get a lower interest rate for your personal loan application. Furthermore, the chances of getting lower loan amount are higher than getting a higher one.
Tip #3: Look for low interest rate personal loans which require no collateral
Unsecured low interest personal loans can be obtained over the Internet but you could only get small loans instead of large ones from lenders when your credit score is bad. Use the Google Map to scout for these lenders online by searching this keyword “unsecured personal loans bad credit”.
In order to get a lower interest rate loan without any collateral, you need to find a suitable co-signer – who has a way better credit history than yours, to use his/her creditworthiness to support your loan application. You can take this opportunity to request for a lower interest rate or loan cost from the lender since lenders have taken the co-signer’s credit score into consideration.
You should worry about getting your low interest personal loans paid off on time and you need to take proper actions to get it done effectively.