subject: Loan: Get The Best Deal [print this page] Loan: Get The Best Deal Loan: Get The Best Deal
Getting the best deal on a loan is not something you can negotiate very well if you wait till the last minute and your credit is not top notch. The better your credit (up to a certain point), the better of a deal you will be able to get on a loan. It's really as simple as that. Lenders will want to lend you money on a low interest rate if you have really good credit because they will really want to do business with you. They will therefore try to entice you with the lowest interest rate possible to try and lure you into going through them to take out your loan. They will look at this as practically a no risk business deal. It will almost be a sure way for them to make money off of you on interest minus the worry of you paying back the loan.
Therefore, if you want to ensure you have the best credit you can achieve before getting a loan, it will take some time to try and improve your credit as much as possible before trying to take out a loan. It will therefore be important to check your credit score often to ensure that your credit is improving the way you want it to be, and therefore, knowing when would be the optimal time to get the loan by looking at where your credit is.
The way to improve your credit score is by using credit (such as a credit card) to pay for things, and then pay your required payments on time each month. Remember, any type of a loan is credit, so be sure to pay things like your mortgage on time as well since if you do not, it could show up on your credit! Despite what some may think, it is unnecessary to accumulate interest to build up good credit. In fact, by paying off your entire balance each month, you prove to lenders that you are even more responsible with your money, and that if you take out a loan, you will have more money for paying off the loan since you are not in credit card debt. Therefore, they will see you as someone even more likely to pay back the loan in the full amount by the end of the term.
