Tips to Get Unsecured Low Interest Personal Loan With Ease

By: Antonio Vargas

An unsecured loan usually comes at higher interest rate as lenders want to cover for the risks. However, thanks to ever rising competition in the loan market place, now even unsecured loans are being offered at low interest rate. There are numbers of lenders who are especially offering unsecured low interest personal loan and that too for any personal purpose like home improvements, buying car, wedding, holiday tour, debt consolidation etc.

However, there are certain conditions that you are required to fulfill in order to get . First of all you must have a good record of paying off past loans in time. In other words lenders would offer unsecured loans at low interest rate to those borrowers who do not have any late payment, payment defaults or any county court judgments against them. Such a clean borrower is seen as having almost no risks for the lender.

A lender judges your credit history by seeing your credit score. On FICO credit score scale a credit score above 650 is considered as good. The higher the credit score is the lower will be the interest rate charged by the lender as risks get reduced. So before you apply for the loan you should ensure that your credit score is at least around the acceptable range.

Secondly, coupled with good credit history, your repaying capability of the loan also matters. Lenders want their loan installments to be returned in timely manner. So if you earn well and have been maintaining a sound bank balance regularly then lender is more assured of safe and timely return of the loan and is willing to reduced interest rate.

Also make sure to compare lenders so that you know which lender is offering unsecured loans at suitable rate. This also is a way to unsecured low interest personal loans. Usually online lenders have lower rate loans but you must compare them as well. Take loan rate quotes for comparison.

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