How to Find Good Rates on Bank Loans

With the economy still in turmoil trying to secure a good bank loan can be a challenge. Banks have tightened their coffer lids and getting them to open them can be a challenge.

When shopping for a good bank loan the first thing you will want to do is get a copy of your credit report. Doing this will allow you to see first hand what the bank will be looking at when they make a decision on your loan application. If you find any mistakes you will want to get them cleared up as soon as possible. When fixing any issues make sure to get documentation stating the issue is fixed, because it can take awhile for the errors to be fixed on your credit report.

Now armed with your credit report your going to want to know what you need the loan for. This may seem simple, and in many cases it is, but if your not purchasing a car, house, or some other tangible item, then the bank will want an in-depth reason for you needing the money. If it is for services, such as auto or home repairs, then you will want to have an estimate of how much it will cost. If you need the funds for other reasons try to have any documentation you can to support the reasons.

Now that all your paperwork is order it is time to start making phone calls. You will want to call many different banks, and inquire about the rates they offer. It will be helpful if you speak with a loan specialist at each bank. The bank should be able to give you a ballpark estimate of what you can expect for a rate based on the amount of money you will need, and what type of loan it is. Using is also another option when searching for banks. 

After you have found the bank to fit your needs, you will then do an application for the loan. When filling out the application make sure you are completely honest. When presenting your income make sure you include income from any side jobs that you may do even if it seems like it is not worth it.

Depending on the type of loan your seeking having a down payment or some form of collateral can help you to receive a better interest rate. For example if you are purchasing a car and have a down payment this reduces the overall amount the bank needs to lend you, therefore leading to a lower rate. For other types of loans collateral acts as a security for the banks, so incase you decide not to pay the can repossess the item and get their money.

While it may be tough to find a good bank loan with the economy the way it is, they can be found if you arm yourself with the knowledge and do the research.