New Year Loan Offers—Tips to Keep in Mind

Are you planning to greet 2017 by buying your own home? A car perhaps? Do you wish to remodel your home and live in an upgraded place for the new year? Or you might want to go on a luxurious vacation and greet the New Year in, say, Paris? Whatever the need be, there is a loan for every need in the market. With the new year coming up, several banks and NBFC’s have new year offers for personal loans, car loans, home and home remodeling /renovation loans, and any other loans suited to your needs. Keep the following tips in mind to have a smooth loan shopping experience for 2017!

Healthy Credit Score: The importance of this three-digit number is monumental. It is the single deciding factor when it comes to loan application and can spell acceptance or rejection of your loan application. The ideal credit score to avail a loan is 750 and above. Higher the score, the better your chances of approval at competitive interest rates. So, make sure you have a healthy credit score.

Concentrate on improving your credit score, before applying for a loan: If your credit score is low, it is imperative that you improve your credit score to at least 750 before applying for a loan. It can take an average of 4-12 months, depending on how serious your credit situation is. In the meanwhile, you can go shopping for loans, and look for the deal that is best suited to you.

Check your credit report: It is vital that you obtain a copy of your credit report to understand where your credit history. Take a fine comb to it and carefully look for any errors that may be needlessly dragging down your score. It is important to quickly file a dispute if you detect any errors and get it rectified.

Debt-to-income ratio: Your debt-to-income ratio plays a crucial role in having your loan application approved. Higher your debt-to income ratio, higher the chances of rejection of your application, or you might be approved for a lower loan amount.  Concentrate on lowering your debt-to-income ratio by making larger payments towards your credit card bills, and paying off the existing loan EMIs if any, and then apply for a loan.

Negotiate for a good deal: Most people settle down for the first offer made to them. Do not make this costly mistake. Always, always negotiate for a better price. Negotiating may lead you to better offers, like a reduced interest rate, penalty-free pre-closure, etc., which will lighten your monthly EMI outgo.

There are several NBFC’s in the market having New Year loan offers and it can become difficult to choose an offer as per your need. If you think you need help with your application and advice on eligibility, then CreditMantri can guide you through the entire process and match you with the loan offer that suits your credit profile.