How to Save Money with a Personal Loan?
Not all personal loans are created equal and some agencies will have hidden costs that may charge you higher rates as a result. If you are looking to reduce and streamline costs when looking for a personal loan, here are some examples that you should follow.
Be careful with interest rates
The best advice is to avoid loans with a level of interest that’s too much to be considered competitive. Ultimately, the total amount that you repay with overpriced lenders after that will include an interest rate that you cannot change.
A good rule of thumb is to remember that competitive loan rates in New Zealand are currently 9.95% to 23.95%. Anything over this will end up costing you more over the period you pay back your personal loan.
Avoid extra loan charges
A personal loan can be an advantage to you in times of need when you don’t want to complicate bank matters. The option to create a personal loan for short or long-term repayments can also improve your credit score through steady payments.
Even if you decide to repay your loan sooner than you’re required to, avoid lending companies that will charge you more for early repayment. These are typically called early repayment penalties, so avoid lenders who are charging you more to pay off your personal loan.
Consider debt consolidation loans
These days it’s all too easy to fall into the rabbit hole of many types of loan debt. As repayments become more and more difficult to manage, debt consolidation is one answer that will create the perfect loan resource for staying on track. The advantage is that your interest rate is lower, and the period that you decide to repay can be more flexible in return
Moreover, the interest that you would have paid to previous lending companies is removed for a fixed rate you can count on. This will allow you to pay back your consolidation loan sooner since more competitive interest rates won’t be eating you alive as a result.
Use one-time personal loans for bigger expenses
Building credit throughout your lifetime is a steady process, but the bigger purchases you’ll make do have advantages for your line of future credit. With large purchases that include a car, boat, or business opportunities, you can help establish a record of your ability to repay selected loan amounts.
This will give you a credit score that allows you to apply for a home loan sooner than you imagined. It also provides you with instant access to a variety of loan options once you’ve proven your ability to repay these personal loans on time.
Avoid extra loan fees
While many lenders are willing to provide a personal loan for you, Quick Loans is here to provide better loan services for our New Zealand residents. We understand that loan fees can be tricky to navigate and often have hidden fees attached. If you’re considering a personal loan, you can be sure Quick Loans does not have added fees to complicate your life.
Our no-frills approach to helping you reach better credit using a personal loan can also start a better credit rating you deserve. Take a further look at what we can offer by requesting a loan application today.
Ash is a professional content writer with extensive experience in business development in the financial services. Ash has founded businesses from the age of 19, including franchising ventures, and working alongside some of the largest retailers in the world.