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Save On The Cost Of Loans! Free Ideas To Get You Started

Nothing is more annoying than having to pay a fortune every time you want to take out a loan, You take out a loan to get something you want, but it makes you poorer in the long term thanks to interest charges and late fees.

The good news is that there are lots of ways to bring down the cost of loans, from mortgages to auto loans. Here’s how.

Use Loan Search Sites

What’s the average interest rate for a used car loan? If you don’t know the answer to that question, you’re probably not using loan search sites. It turns out that interest rate applied to things like car loans can vary enormously from one provider to another. In fact, it can vary so much that for some loans you could end up paying nearly double (so longs as the loan is long enough). For that reason, shopping around is a great way to find the best deal. Companies often want your business, even if you’re high risk, and so it’s worth looking at all your options.

Pay An Extra $150 On Your Mortgage

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Paying extra on your mortgage might not sound like a good way to save money, but paying more upfront today helps you avoid high-interest costs down the road. Every month that goes by that your principle remains high is another month where you’re simply paying extra money to the bank in the form of interest. All that money simply going down the toilet and never adding to the equity of your home. When you think about it, paying an extra $150 a month towards your mortgage isn’t paying the bank at all. Instead, it’s adding equity to your home and increasing your ownership of it. The more money you put in now, the less interest you’ll have to pay in the future.

Prove You’re Creditworthy

Sick of paying sky-high interest rates every time you take out a credit card or a loan? Then it could be time to prove to the credit rating companies that you’re credit worthy. But what does that mean? Essentially, it means showing them that you’re able to pay back your loans on time so that lenders don’t have to charge such a high rate of interest.

But what can you do to prove that?

First off, try to apply for FEWER credit card and loans. Every time you apply for a loan, your credit rating takes a hit. The rating agencies assume that you’re applying for loans because of your current difficult financial position.

Second, stop letting credit roll over on your credit card. If you’ve always got money rolling over, rating agencies will assume that you don’t have enough income to service your debt and they’ll put you into the high-risk category.

Finally, never miss a payment on any of your bills. That might be hard if you’ve got other financial pressures, but it will have a positive effect on your score. Just paying small bills on time like internet and phone can have a significant impact on your creditworthiness.