This document discusses how to lower personal loan interest rates through 4 tips: 1) Raise your credit score by making on-time payments and paying down debts to appear lower-risk to lenders. 2) Ask lenders to lower rates on existing loans, though success is difficult. 3) Refinance loans if current rates are lower. 4) Consider secured loans using home equity or other collateral to qualify for lower rates than unsecured personal loans. The overall goal is to improve creditworthiness and shopping for better rates.

1. How to Lower Personal Loan Interest Rates
By http://www.LendingAndCredit.net
Figure 1: Lower Your Personal Loans Rates to Save Money
Before we start discussing how to get lower personal loan interest rates, it is
important to understand what these loans really are. So let's look briefly at their
characteristics:
(1) They are unsecured, which means you do not need to have collateral to get
the loan;
(2) Because of the lack of collateral, they usually attract higher interest rates;
(3) Lenders give you this loan only on 'faith' that you would pay the money back
(4) You need to have excellent credit scores to even be considered for them
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2. (5) Because of all these, it is very difficult to get approved for personal loans if you
do not have an excellent credit rating.
Having said all that, you can still get a personal loan approved at reasonably low
interest rates. So let's now look at how to get lower rates for these loans using
these 4 practical tips:
1. Raise Your Credit Score.
The best way of lowering interest rates on personal loans you obtain from banks
and other financial institutions is to improve your credit score. This puts you as a
good risk in the eyes of lenders, your excellent credit score tells them that you
would pay back the money. So how do you raise your credit score? Make your
payments on time, do not open new accounts and pay as much of your debts as
possible.
2. Ask Lenders to Lower Interest Rates.
If you have been able to raise your credit score, consider asking your lenders to
lower your interest rates. It is difficult for this to happen but it is possible. The
banks may lower rates on your existing loans. This may not be much but over the
life of the loan you will save a lot of money.
3. Consider Refinancing Existing Loans.
Again if you have improved your score, apply for a new loan with lower interest
rates. Check the current national interest rate for loans. If it is lower compared to
the rate at which your current loan is at, then refinancing may be a wise choice.
Use the excess money to pay off the old loan.
4. Consider a Getting a Secured Loan.
This could be possible if you have a home and there is considerable equity in the
house. Another way of getting a secured loan is to use your car title to get a car
title secured loan. You can also secure the loan based on any assets you have
which banks would accept, for example jewelry. If you already have an existing
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3. personal loan that have high interest rates, getting a secured loan at the lower
rate will help you pay off the old loan.
We know you have discovered a good deal from this document. Therefore we do
invite now to come to our website for more personal finance tips, get your
questions answered, and lots more. Go now to:
http://www.LendingAndCredit.net
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