Family Finance: No Matter the Reasons for Your Loan, You Deserve the Best APR Possible

A loan may have all the merits to deliver you from a tight financial situation, but a few wrong moves and you can end up in more trouble than you were before. All lending institutions issue loans with the guarantee that an applicant will pay back the money, along with a pre-calculated annual interest over a pre-determined period.

As the borrower, therefore, the interest a lender charges can make all the difference between getting out of your predicament successfully or sinking deeper into the murk.

So, when you need some money, don’t let desperation rush you into making a damaging deal. Below are some tips that will help you get a low annual percentage rate and avoid a good chunk of cost on your debt.

1. Becoming an Ideal Client

Lending money is risky business, and as a result, lenders typically have guidelines that determine who they approve as their client. The fewer boxes you check, the riskier you become, and that means a higher APR. Applicants with excellent credit and a reliable source of income, such as stable employment or a thriving business always find it easier to get low-interest loans than borrowers in a shaky financial situation.

Before applying for a loan, ask yourself if you would make an ideal borrower. Go online and check your credit score with a major credit reporting bureau. And if your credit isn’t as good as you would want, seek out ways to improve it.

Repairing bad credit can take you months or years of responsible financial planning. Therefore, think about how long you can wait before applying for a loan, and if you have time, consider building up your score first.

2. Weighing Your Options

For borrowers looking for low APRs, big, established lending institutions aren’t the only option. If you don’t like the rate your bank quotes to you, start looking into other choices. Local credit unions, for example, often offer the lowest interests since they’re run by their own members.

Online lenders are also known for their ultra-friendly rates. A company like Loan Review HQ provides unsecured personal loans with low APRs to short-term borrowers, even those with bad credit.

3. Getting Better Terms


Most lenders will be willing to offer better rates if you sweeten the deal for them. For instance, securing your loan with a valuable asset like a house or car will almost always get you a low APR, since you will be protecting the lender from loss. Collateral loans are also typically more straightforward to obtain than standard personal loans, especially if your credit history is unfavorable. On the downside, your property will be tied to the loan, and the lender will certainly take it if you don’t pay them back.

Alternatively, consider getting a cosigner on board. Asking a friend or family member with a high credit score to co-sign on your loan will make your application less risky to the lender and will, therefore, result in lower rates. Keep in mind, however, that you will be putting your cosigner’s credit on the line. Before signing up, be sure you can pay back the loan.


A great APR can be a huge money saver down the road but getting one means knowing where to look, and of course, being the client with which the lender would like to do business. Let the pointers above be your guide to landing the best loan rates available for you.