Almost all borrowers are wish to getting cheapest loan from bank / lender. However, the lenders only offer the cheapest rate for their best customers. There are lending based on 4 criteria from customer :-
1) Have a stable job
2) Low income to debt ratio, say LTV ratio not more than 35%.
3) Excellent credit score and with best banking history.
4) Have best track record, never default or defer in previous loan payment.
All lenders will report to credit reference agencies regarding whether payment has been received punctually. Late payment or defaulting will cause the scoring drop down badly. Only the one with excellent credit will get the unsecured low interest loan from lender. If you are carrying a bad credit, doesn't matter. Just take 6 months to 1 year to repair your credit score.
If you found out that your credit is less than perfect, you should check your credit report clearly. Any blemishes on the report should rectify it immediately, you may get assistance from "Credit Repair Attorney". After rectification, your score will be increase back to your real score, so, check your credit report thoroughly.
While almost all working adults are committed with some debts or family commitments. If the income to debt ratio is more than 35%, chances of getting low APR loan is minimal. Because a high level of debt relative to personal income increases the likelihood of the borrower defaulting.
In conclusion, if you wish to get the loan with cheapest rate, you should ensure that the items stated above have been meet and build a good relation with your regular bank or financial institution.
For more other loans information, please take a look at Various Loans Guide instead of Cheapest Loan
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