Most loans come with interest rates, which is the amount of money that a money lender charges a borrower for any form of debt given and is usually expressed as a percentage of the principal amount. In Singapore, it is common for easy cash loans to come with interest because they serve as compensation for the money lenders’ loss of use of the money during the loan period.
How much the interest rate on your loan will be depends on a number of factors, such as your current economic conditions, payment history, and credit score. That said, there are several ways for you to negotiate and lower your interest rates. To find out what they are, read on as this article shares some simple ways you can negotiate lower interest rates on your loans.
1. Research and compare interest rates
Different banks, financial institutions, or money lenders offer different interest rates. For this reason, it is an excellent strategy to research and compare interest rates offered by various money lenders in order to get loans at low interest rates. It would be good to analyse the requirements and conditions of every loan you come across and compare them with that of other loans. You can also take advantage of festive seasons like Christmas to get special discounts and offers that provide lower interest rates on loans.
2. Establish a good repayment history
As mentioned earlier, one of the essential factors that money lenders look into in determining the interest rate of your loan is your repayment history. If you have a poor repayment history, chances are your money lender will not allow you to negotiate for a lower interest rate. As such, it would be helpful to build a good repayment history by paying all your debts on time. If you have multiple debts and are struggling to keep up with them, you may try getting approved for a debt consolidation loan in Singapore to streamline your payments.
3. Keep a healthy credit score
Aside from building a good repayment history, it is also best to maintain a healthy credit score if you want to boost your chances of acquiring loans at low interest rates. Generally, borrowers with higher credit scores qualify for lower interest rates since they have a record of constantly repaying their debts accurately and on time. Besides favourable interest rates, a good credit score can also give you access to better loan products. Hence, as much as possible, do try to always keep your credit score at a healthy level (i.e., 700 or above).
4. Build a long–term connection with your money lender
If you have been a long-standing client of your money lender, they may offer you lower interest rates on your loans because of your relationship. Of course, banks and money lenders want to have a working relationship with each of their clients. So, if you have been a loyal client with your bank or money lender, there is a great chance that they will grant you lower interest rates on your next loans. Low interest rates can be your money lender’s way of thanking and rewarding you for your patronage and loyalty.
Conclusion
Negotiating lower interest rates on your loans can help you pay off your debts faster and save money. However, sometimes, it can be challenging to convince your money lender to lower your interest rate, especially if you have a poor repayment history and credit score. To increase your chances of obtaining favourable interest rates on your next loans, be sure to follow the pieces of advice shared in this article, as they can help you become a better borrower who qualifies for low interest rates.
Whenever you need a loan with fast loan approval, Orange Credit is always ready to help you! We are a highly trusted licensed money lender in Singapore that offers valuable instant cash loans for different applications, such as personal loans, business loans, payday loans, bridging loans, and debt consolidation loans. Please do not hesitate to get in touch with us anytime to find out more about our reasonable and hassle-free loans.
