What’s Your Interest Rate?
Sound familiar doesn’t it. This question is asked most often, before any other by people applying for personal and business loans.
Interest rates are disclosed on loan contracts based on the strength of an application and once an application for finance has been approved.
Before this has happened an interest rate mentioned is just advertising, to get people to apply.
On all advertising banks, finance companies and credit unions use, you will hear or see a low interest rate written in very large print, or shouted out loud. There is always; in small print wording similar to: “To approved applicants, lending criteria applies.”
What this means, in every case is, without completing an application for finance that has been approved by a lender, the interest rate is not known.
- All applications for credit are subject to lenders’ credit assessment criteria,
- Terms and conditions will always apply,
- Fees and charges will be payable.
Based on the strength of your application, taking your own unique situation into account and how that matches up with lenders criteria will determine what the lender is prepared to do in terms of lending their money to you, not only the interest rate, but whether the loan will be secured or unsecured, the loan term and the payment frequency.
Lowest Interest Rates
Low Interest rates on personal loans are given to people once the lender has accessed the application for finance and considers the applicant is a good risk; based on their lending criteria.
How To Get Low Interest Rates
To meet the lending criteria of a particular lender, you need to know what their lending criteria is. This is one of the benefits of using experienced finance brokers from Houston Finance.
At Houston Finance, we have a large panel of lenders that we deal with every day, and know what their lending criteria guidelines are, allowing us to place your application to the lender of ‘best fit’. We do not approve the loan ourselves!
While all lenders criteria is different, to attract the type of applicant and business they would like to have on their books, they do all have similar guidelines.
Based on the 6 ‘C’ lending criteria, we can determine whether you meet a particular lenders guidelines and are likely to be given an approval; or not.
Low interest rates are given to applicants the lender considers a good risk and not likely to default on the loan if granted an approval.
Past history and stability are the two biggest considerations. Lowest interest rates will be given to a person that is more stable, with a good credit history and that can show affordability to make the loan repayments.
The first question to ask should be ‘Do I qualify for a loan’ and if you do, you will be told what the interest rate will be; with all terms and conditions.
Houston Finance Only Get Paid On Approvals
We work for you, to get you the finance you’re after to buy something special. There is no broker fee for putting in the work we have to do, unless we get you an approval you accept. So we try very hard to get the best outcome possible.
You can help us, help you by reading the following pages.
- Do I qualify for a loan?
- What if I have bad credit?
- What supporting documents are required?