Do All Loans With Guarantor Have a Low APR?
Are you thinking about applying for a guarantor loan? These loans typically have fairly high interest rates, but it is possible to find loans with guarantor low APR if you take the time to compare all your options. Comparing loans can take time but you can save a lot by selecting the most affordable guarantor loan you can find, especially if you have many outstanding debts.
Finding a Low Cost Loan
You can find a loan with a lower APR if you fill out an application that does not make you look like a high risk to the bank or to the lender you selected. You can usually qualify for a lower APR if you can prove that you have a full-time job and can get a letter from your employer stating that you are not at risk for losing your job.
You should also be able to document your income and your different monthly expenses. If possible, look for ways to increase your income. You could for instance ask for a raise, get more hours if you only have a part-time job or look for a second part-time job. Bank and lenders will be more likely to give you a loan with a lower APR if you can prove that you will be able to easily afford the monthly payments.
For an insight into how APR is calculated, check out the following video:
Assessing Your Financial Situations
The financial situation of your guarantor can also impact the APR you qualify for. If you default on your loan, your guarantor will have to make payments until the balance of the loan is paid off. You can usually qualify for a loan more easily and get a loan with a lower APR if your guarantor has an income that would allow them to easily afford the loan payments. Choosing a guarantor who has a long work history and a good credit score can also work in your favour.
Borrowing a smaller sum of money should help you save on fees and interests. Banks and lenders will be more likely to offer a lower APR if you want to borrow a sum of money that will be easier to pay back. The duration of the loan can also influence the cost of borrowing money. Try borrowing less so that you can easily pay the loan back before APRs and other fees have the time to accumulate.
Comparing Different Options
It is important to compare the APRs offered by different banks and lenders. You can usually find out more about the APRs of a bank or lender by visiting their official website or by simply contacting one of their loan officers over the phone. You might have to share a few details about the amount you want to borrow, the duration of the loan and your income in order to find out what your APR would be.
You should contact different banks and lenders to compare their fees and APRs. Do some background research to find a reliable lender who will provide you with an easy way to make payments on your loan and who will offer good customer service. You shouldn’t select the lender with the lowest APR if you don’t think you will receive good customer service.
Take the time to compare your options to find a guarantor loan with affordable APR and low fees. You can save a lot on fees and interests by simply shopping around and comparing different loans. You can also save money on interests by working on improving your credit score, increasing your income and by looking for the right guarantor. You also need to find out more about different banks and lenders who offer guarantor loans so that you can find a lender who will provide you with good customer service.