Are you buying a new car? Consolidating your debt? Or paying for a medical bill? Whatever your reason for getting a loan, it is no secret that you should look for a loan with competitive interest rates and Annual Percentage Rates (APRs). Don’t take out a loan without reading the tips below:
Tips For Finding Competitive Loans:
1. Shop Around For Lenders
Treat your loan like any major expense and research the various options available before settling on the most suitable one. Research the various lenders, their loan types, repayment terms, interest rates, APR, and so on. It is in your best interest to compare the different employee loan programs available to you.
2. Make Lenders Fight For You
In some cases, letting the lenders know that you are shopping around or working with other lenders provide them great incentive to offer you a competitive rate.
3. Compare Total Costs
Interest rate is not the only factor or the best way to determine if your loan is a good deal. You need to consider the overall cost of the loan, which is better expressed in the APR. The APR covers the interest rate, finance charges, document fee, processing fee, and any other additional fees required by the loan provider. Do not be fooled into thinking that you are getting a good deal with a low interest rate loan, make sure you also check the APR. Likewise, check the terms of the loan, such as how long you will be paying back the loan, and if you are allowed to make extra payments. These often-ignored details contribute to the total cost of your loan. If you do not take them into account, you may be led to believe that you are getting a good deal when you’re not.
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4. Find Hidden And Additional Fees
A lot of people do not read the fine print before taking on a loan. This is a big mistake because you may miss important details about the loan. Make sure that you read the fine print and take note of any fees or terms that were not discussed upfront.
5. Opt For Shorter Loan Terms
The loan terms will determine how much you pay each month as well as the total cost of your loan. While a longer loan term often promises lower monthly payments, it entails higher total costs because your loan racks up more interest. In contrast, a shorter loan term may mean higher monthly payments but also lower overall costs. If you can afford it, a shorter loan term could be a better option and can potentially save you money in the long run.
If you are in the market for employee loans, you should consider applying for an Employee Loan with our ACCESS LOANS® program which makes lending more accessible, convenient, and transparent.
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* ACCESS LOANS® products are offered by Safra National Bank of New York (“SNBNY”). Member of FDIC. Equal Housing Lender.
