Consolidating high interest debts for a low interest loan isn't just
for property owners. With an unsecured loan, you can cut your interest
rates by half in some cases. Reduced interest rates mean you will have
more money in your pocket each month. So you can choose to eliminate your
debt faster or simply enjoy the additional breathing room with your
finances.
To get approved for an unsecured loan, you need to pay attention to
your credit history and cash assets. Shopping for lenders can also save
you money on both rates and fees.
1. Is Your Credit In Good Shape?
Most people are unaware of their credit score and report status. When
applying for a loan, it's important to know that your information is up
to date and accurate. That's why it is a good idea to inspect your
credit report before shopping for a personal loan.
Even with poor credit, you can still find financing. Lenders consider a
number of other factors besides your payment history. Your income,
employment history, and cash assets are also part of your loan
qualifications.
2. How Much Do You Need?
To get the lowest rates, you want to borrow as little as possible to
consolidate your debts. So start by totaling up your high interest debt.
That figure is what you want to apply for.
Besides your loan amount, also consider what terms you want. Many
personal loans are for five years, but you can extend them for smaller
monthly payments.
3. Where Do You Look For Lenders?
While you can easily find lenders through a search engine, these don't
always offer the best deals. Instead, start your search with
recommended sites. Before signing up with a lender, make sure you have compared
several different offers.
For amounts less than $10,000, you can sometimes consolidate your bills
for a lower rate with a credit card. Companies that offer 0% on
transfers or low fixed rates are well worth checking out. Credit card accounts
are also easier to qualify for than personal loans.
Once you have paid off your high interest debt, close accounts you
don't plan on using. By reducing your available credit, you improve your
credit score and keep yourself out of debt.
View our recommended online unsecured debt consolidation loan lenders.
Also, check out our recommended credit report company online, or view our recommended 100 percent home equity loan lenders online.
