The lending market is quite fierce and competitive, and many of the companies on it guard their secrets closely. After all, they need to profit too, and it doesn’t make sense to reveal their best deals to their customers so openly. That said, there’s a lot that you can do to maximize your chances when working with a lender, and you should maintain a determined attitude when looking for a loan.
This is especially true if you’re a first-timer. Many lenders will try to take advantage of that fact by trying to paint the situation in a different way. But you must resist, and remember that a little time taken to study what you’re dealing with can often go a long way.
There Are Always Other Options
The most important thing to remember is that you always have another option available. Even if that option is to get up and walk out, it’s still one. Just because you’ve walked into a lender’s office doesn’t mean that you’re required to close a deal. It’s just like shopping at any other kind of store – this one just sells a specific type of product. Some lenders might try to play with your guilt by making you believe that you’ve wasted their time by refusing to agree to their terms. But remember, it’s their job to sit there during their opening hours and talk to people who’ve walked in.
Interest Rates Are Not Set in Stone
Just because a loan’s interest rates are written on the contract that you’re given to sign doesn’t mean that they can’t be changed. Some lenders might try to make you believe that it’s outside of their control, or that the right person is not available. But just keep pushing – and remember the previous rule we mentioned above. If you’re not happy with the rates you’re offered, you can always take your business elsewhere.
But in most cases, you’ll find that lenders can get surprisingly flexible if you have the right circumstances on your side. Things like a good credit score and the willingness to put up valuable collateral can go a long way.
You’re Probably Eligible for More Than You Think
On that note, make sure to familiarize yourself with your credit report and know where your current score places you. Most people are surprised when they find out how much they can actually get with their scores, and if you haven’t checked your report in a while, now might be a good time to do so. Talk to several different lenders and try to find out what kinds of deals they can get you, and use that as leverage in your negotiations.
That last bit is especially important. If you’ve been able to get a better interest rate from a different lender (but their deal didn’t suit you otherwise), you should definitely bring that up in your discussions. Lenders can be quite competitive, and they would often prefer to give you a deal that’s slightly worse for them, rather than let you get taken by a competitor.
Collateral Isn’t Always Required
With a good enough credit score, you won’t always have to put up collateral in order to get access to a quality loan deal. But even with a bad score, you might still have access to options that don’t require collateral. Unsecured bad credit loans do exist, and even though their conditions will be worse than other options on the market, at least you will have access to them. Plus, if you’re responsible about getting the loan paid off on time, you should be able to use the opportunity to improve your score for the next one.
Time Is Your Friend
We touched on this above, but it’s something that can’t be stressed enough. If you don’t need this loan for a major, urgent expense, you should take your time and carefully compare the deals on the market first. There will always be a better option right around the corner, and if you rush, you’re going to miss many of those. Sometimes, some of those options will only be available very briefly. You have to be lucky enough to be scouting the market at the right time in order to take advantage of them.
But for the most part, as long as you can set aside at least a week or two to properly compare rates and other conditions, and negotiate with a few lenders specifically, you should have an easy time picking a good loan that suits you in every way possible. Having a good credit score can make this much easier, but is not absolutely required. And as we mentioned above, even those with a bad credit score can use this as an opportunity to improve things and put themselves in a better situation.