Tag Archives: rate
How To Make A Valid Interest Rate Comparison
When you are about to open a bank account it is important to keep interest rate comparison in mind. The bank that offers you the best rates for both keeping you money in the account as well as on any loans that you might want to take in the future, should be the one you select. However it would take you a while to do your research and compare the bank interest rate offered by the different options. Therefore before you embark on this task, here are two aspects to consider which will make this process not only simple but also hassle free.
*Firstly it is important to figure out what kind of account you want to open. Each has a unique function which in turn affects the interest rate comparison. If you were to open a savings account, you would have a very good bank interest rate but you would only be able to make limited withdrawals from the account. And if you were a business person who needed to withdraw money frequently then this would not be favorable. A fixed rate account is also an option but then the interest rate is fixed and not affected by market fluctuations. Or you could have a tracker account where the interest varies according to market fluctuations. *Secondly getting a loan from the bank is also something you need to examine. You might need a loan to pay off the purchase of a new home or a vacation that you want to take. Or you could need the money to pay off the education expenses of your children. You might have to mortgage you house and knowing the mortgage rate of interest would help you ascertain whether you are getting the best deal possible.
Using these two points to make an interest rate comparison will allow you to make a very perceptive and insightful decision. And it will also pull up a number of points that could add new dimensions to the choice you want to make. Therefore the more thought you put into this, the better and more effective your choice will be.
Reducing The Auto Loan Rates
There was a time when the most of the car loan borrowers used to focus on the monthly payment and nothing else. Times have changed drastically and a penny saved is a penny earned. Most of the car loan borrowers have realized the impact of the interest rate on the pay back sum. This is the reason why many car loan borrowers seek best low interest auto loan before signing the papers to avail the car loan. Some of the prominent strategies to reduce the car loan rates are as follows:
Timing:
There are times when the car dealer is impatient to get rid of the new car before it depreciates in the show room without even coming on the road. This usually happens at the end of year. The ending of the month is the period in which the car dealer has to make up for the monthly expenses. The month ending and the year ending are the two periods when the car dealer would be ready to offer maximum discount and consequently the best low interest rate car loan.
Credit score:
If you have a good credit score you are at a vantage point and demand for reduction in the rate of interest because nowadays the number of good credit car loan applicants is very meager. If you have bad credit most of the lenders would like to charge you with higher rate of interest. This can be averted and the rates of interest can be reduced by getting a good credit cosigner, making a large sum of payment in advance also known as down payment, assuring the monthly payment by submitting proof of regular income through a stable job and finally pawning the home equity or the car as the collateral. Whether good credit or bad credit, the car loan lenders want the risk of repayment to be lowered and if this is done they are usually ready to reduce the rate of interest.
Comparison and negotiations:
Most of the car loan lenders have websites and are always ready to furnish you with a free car loan quote on request. The response of various car loan lenders can be compared and you can come to know about the best low interest auto loan. The responses can serve as a platform for negotiating the reduction in the rate of interest. The above mentioned issues can also help you to avail the best used car loan rates