Lowering interest rates is the easiest way to bring down your total loan costs and thus get more money over each month. Banks and lenders set the interest rate individually for each loan application. Therefore, in order to get the cheapest loan, it is wise to do what you can to be extra attractive in the eyes of the banks.
7 tips to get really popular with the banks
The banks set the interest rate individually for each loan application. To get the cheapest private loan, the bank must be confident that you will be able to pay both interest and amortization on time. Below is a checklist of what the banks are looking for:
1. Pay your invoices on time
If you have payment remarks, it is usually seen as something very negative. You also save money on avoiding unnecessary reminder fees. If you find it difficult to keep track of due dates and OCR numbers, it is both easy and smart to pay as many invoices as possible via direct debit. If any month should be financially scarce, call the person who issued the invoice and explain your situation. In many cases, it is often possible to divide the invoice into partial payments.
2. Terminate credits you do not use
If you have a credit card that you do not use, it affects your ability to get a loan with a really low interest rate. Therefore, cut cards you know with you that you will not use and will never use.
3. A clear plan for your repayments
The bank likes when you are in control of finances and when you have a clear plan to become debt free in the long run. When you repay regularly, the total loan amount is reduced, which leads to lower interest rates and lower costs. When you have the opportunity, it is smart to pay off some extra on your existing loans. The lender’s risk decreases as the customer’s loan-to-value ratio is lowered. It gives you a better opportunity to negotiate for the cheapest loan.
4. Have a co-borrower
Maybe you have a partner or family member with a good credit rating? When you are two people, the risk is significantly reduced for the bank. If the bank considers you to be a risk-averse customer, you will receive a lower interest rate.
5. Collect your loans
If you have many small loans and credits, you pay unnecessarily much money each month in interest and hidden costs such as newspaper fees. And because you get less money over, you also have less opportunity to pay interest and amortization for your new loan, which the banks obviously do not like. Therefore, one of the best ways to save money is to put together all the small loans and credits – it only takes a few days and costs you nothing. Apply directly in the form on our website!
6. Make as few credit reports as possible
Every time you apply for a loan, the bank or lender will take credit information on you. Credit information is stored for 12 months at UC. Having done a few credit reports does not affect the banks, but if you have done many then it is something negative in the eyes of the banks. If you compare the banks’ interest rates with Astro Finance, only one credit report is taken!
7 Avoid expensive trips and holidays
Today it is very common to borrow money for a trip. From an economics perspective, however, it is not so wise. On the one hand it is often expensive to travel, but also having to pay extra in the form of interest makes it all a less good idea. You could get more value for money by taking a cheap caravan loan. The value of the caravan consists after the purchase, and that a whole that several summers can be spent in the same caravan – fun and economical!
8. Use Astro Finance to compare banks’ loan terms and interest rates
With Astro Finance you can easily and easily compare interest rate offers at 30 different banks and lenders. It only takes one credit report and is completely free of charge. This way you maximize your chances of getting the cheapest possible private loan!
Compare interest rates with Astro Finance
All banks specialize in different types of customers. It is therefore not possible to say in advance which bank will give you the lowest interest rate. Thus, it is important to compare different loan offers to find which bank suits you best!
If you as a private individual go to several different banks to compare the terms, they each take credit information on you. This affects your credit rating and can impair your ability to get a really low interest rate. If you choose to compare with Astro Finance, only one credit report is made. The service is completely free of charge and you do not commit to anything when you make a comparison. Instead, Astro Finance gets paid directly by the bank or lender when we help them get a new satisfied customer.