If you are in the market today for a personal loan, you want the best interest rate and terms that match your financial habits and lifestyle. You never have to overpay for a personal loan, or feel boxed into taking a personal loan whose terms you do not agree with. This is where it really pays to do an exhaustive search online, or use our website to look for reputable lenders whose lending criteria matches your credit history.
When you rate shop your credit score will take a slight dip. This is due to the hard inquiries that will appear on your credit history. Yet most people do not know that if you cluster a bunch of them within a few days apart they will not hurt you as much, since credit scoring models take into account rate shopping. When credit scoring models such as FICO and Vantage see several inquiries within only a few days apart they automatically know you are shopping around for the perfect loan, so those inquires hold less weight in total. Now if you space these inquires out by a week or more each, then they will individually hurt your credit score. The lesson here is when you are ready for a loan and rate shopping, get it all done within a few days apart, so that your credit score stays intact.
You also have another option besides a personal loan, if your credit is good. If you have an excellent credit score, you could go apply for a credit card that has a long interest free introductory period. Even if you need cash and cannot fund the purchase or expense you need, if the credit limit is high enough, you can do some cash advances. Of course going the cash advance route could take a few days to withdraw the needed amount if the credit card has a limit on cash advances. One tip I have used to skirt these limits is to simply call the credit card company and explain my need for cash, why I need the cash and ask for the limits to be lifted. More often than not they will work with you on this, especially for legitimate needs.
Your excellent credit always opens up doors for you. Credit unions and banks alike will offer you generous terms that people with lesser credit could never obtain. The secret to finding the best rate is to search online. Make use of any lenders that offer to pre-screen you for interest rates. These lenders will give you an offer interest rate, simply using a soft inquiry. As long as you have no nasty recent hidden surprises on your credit report, the offered interest rate should be on target. There are many online lenders who specialize in lending to people with excellent credit scores, and these lenders will offer not only generous interest rates, but also loan terms that you can live with. As always if you are secure with your abilty to repay your loan, and you should be secure in that fact if you have excellent credit, you can look for a secured loan for even more interest savings. Of course you would need to use property or an auto as collateral, but the money you save on interest can be put towards making more money, allowing you to leverage every dollar you have the right way.