 Print this page |
No loan to go to?
|
Ways to get a better deal
You may not get such a great interest rate at the moment, but there are ways to make sure you don’t pay more than you need to for a loan.
The credit crunch has caused many banks and building societies to raise interest rates on loans. But there are still good deals to be had and you can still save by being savvy.
Whether you have an immaculate credit history or not, you should definitely shop around to see what’s being offered at the moment. Interest rates can vary greatly.
top loan offers
However, if you don’t have a perfect credit history, you should prepare for the fact that you may not get the rate advertised.
This rate is often the “typical rate”, which means legally it only has to be offered to 66% of applicants.
No body’s perfect
If you have some adverse credit history, you’ll usually be offered a higher rate than the typical because you’re more of a risk.
This is particularly the case at the moment: lenders are worried about bad debts, which were partly the cause of this whole mess in the first place.
A recent Bank of England report said that 90% of lenders are being cautious about who they lend to. So now is a good time to try to clean up your credit history.
As lenders place more emphasis on your history to judge what rate you’ll get, anything you can afford to pay off, or even just reduce, will help you get a better deal.
If you have an adverse credit history, it’s important to have some knowledge of your credit score: this will give you an idea of which deals you’re likely to be accepted for.
You can start by checking your credit report with agencies like Experian and Equifax.
