Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Ways to Influence a Personal Loan Interest Rate


It’s not uncommon for a person to need a personal loan. This money is often acquired to apply it to a home improvement project or to have cash for an immediate purchase. While applying for a personal loan may be tempting, you should remember to examine the need you have for the loan, the resources you have to repay it, and the interest rate available.

Many factors contribute to the decision-making process about the interest rate for your personal loan. You have the ability to influence two of those factors through demonstrating financial responsibility and planning:

  1. Credit Score — We all have heard of a credit score. Your credit score has great influence over the interest rate you receive on some loans, though it is not always the absolute driver of your interest rate. This number is negatively affected by behaviors such as missed payments and over-extended credit limits. It is, however, a give and take relationship. When you demonstrate good behaviors, the score is positively affected.
  2. Loan Options — The type of loan you want to acquire also influences the interest rate. If you want a secured loan, you must offer collateral, which can typically make the loan cheaper. An unsecured loan is riskier for the lender because it does not require collateral; thus, it often turns out to be more expensive.

You can also consider other factors, such as the term of your loan. If you’re using a loan to purchase a home or car, then a larger down payment can lead to lower interest rates.

How do I Acquire a Personal Loan?

You can begin by utilizing a personal loan calculator. This can help you determine what a payment may be, and help prepare you for your conversations with the bank.

It’s important that you find a financial institution that you feel can help you through the process. More often than not, people find that local banks offer the same services at lower costs and keep decision-making local. This means that you’ll be more than an account number. That’s the goal at First Bank,* and your satisfaction has been our single goal since being established in 1935.

Contact us today to begin the process of acquiring a personal loan.**


*Member FDIC. Equal Housing Lender. NMLS #474504.
**Loans subject to credit approval.

———
Sources:
http://www.loan.com/personal-loans/4-factors-that-contribute-to-fluctuating-interest-rates-on-personal-loans.html
http://www.bankrate.com/calculators/managing-debt/loan-calculator.aspx

Top 5 Reasons to Choose a Community Bank or Credit Union

Who We Are

Personal Loans


Trending Topics
Bank Accounts for North Carolina Businesses If you’re running a business, you want to make sure your finances are in good order. First Bank* offers North Carolina businesses the bank accounts and merchant services tools needed… What are Secured Loans? There are two types of loans that individuals and businesses can take out when they need extra funds for projects, repairs and other unexpected expenses, secured and unsecured. Secured loans are… How Much Should You Have In Savings at Age 25? If you're wondering how much you should have in savings by the time you're 25, you're already on the right track. At an age where financial independence becomes increasingly more… 5 Financial Tips for Your 30s Your thirties are a great time to get a handle on your finances and start investing in your future. Whether you want to buy a house, build up your retirement or spend time traveling the globe,… What to Know About Joint Checking Accounts Some of the biggest causes of stress in a relationship stem from finances. If you’re considering opening a joint checking account, there are some things you should know. Here are… FHA Loans vs. Conventional Loans: How to Tell the Difference Overwhelmed with the prospect of buying a home? FHA loans and conventional loans are likely two sources of financing that you’ve considered. Let First Bank help you understand these options… Finance 101: Banking Basics Finance 101: Investing in your financial future is one of the smartest things you can do. But there is more to building healthy finances than simply stashing away extra cash in your piggy bank.… How To Make A Budget The best way to save money and gain control over your finances is to make a budget. Follow these simple steps to make a budget that will save you money… First Bank is One of the Top Banks in the U.S.A. When searching for the top banks in the U.S., it is often smarter to work with a small community bank over a national bank like Wells Fargo or Bank of… How Much Money Should I Have Saved by the Time I am 30? Are you approaching 30? How much money do you have saved? According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at…