Knowledge base on
low interest rate student loan consolidation
Need A Loan? Guess The Interest Rate
How do you find the best interest rates if youre planning to apply for a loan? Until relatively recently, it was simple. There were plenty of lists of comparative rates published in table form on various websites. You could take your pick and investigate the terms of the cheapest lenders. This approach is not so easy any more.
Many banks are choosing to use a new system where the rate offered is dependent on your personal credit profile. At first glance, this appears to be a very fair system, but in fact would-be borrowers will have no idea of what interest rate theyll be offered and so will be unable to make comparisons.
The Halifax, HSBC and Bank of Scotland have all switched to personal pricing and no longer advertise typical rates. In fact, most of the twenty leading lenders have adopted this method. The result of this is that customers applying for a loan will have very little idea of what rate theyll be offered, or whether theyll be accepted. This is a ridiculous situation as no should have to go blind into a credit application without a good idea of the interest rate.
Its difficult to find out the rates by multiple loan applications, as each credit application is marked on your credit file. Lenders are understandably concerned where there have been excessive searches carried out and therefore the apparently simple process of achieving the best rate for your loan could affect your credit rating!
Even applying to your present bank for a loan will still require a credit check, but you may be able to gain some idea of what the interest rate is likely to be and most banks would, presumably, like to keep your business.
A representative of one of the leading banks has said the lending is on dangerous ground at present and that there are huge debt problems in the UK. Because of this, loan applications are increasingly likely to be rejected.
Where banks are still advertising headline interest rates it appears that lenders are failing to follow through with offers to a high proportion of applicants. Those who are successful are often offered a higher rate than the one advertised.
The Consumer Credit Act 2004 stipulates that lenders who advertise loans using a typical rate must lend money at that rate to at least 66% of successful applicants. Obviously by not showing a commitment to a rate, lenders can evade this rule.
A recent survey showed that, of almost 3,000 people who applied for a loan, 40% were refused almost immediately and 25% were accepted without delay. However some days later the remaining applicants were still waiting for a reply and it is expected that a further 17% will fail to be granted the rate they applied for.
There are a great many people applying for loans with the lowest headline rates and very many of them are going to be disappointed. Doubly so, as with every rejection they are putting the chance of obtaining a loan from another lender in jeopardy.
A browse through the internet will find you an advisor who should be able to offer some guidance and help you to avoid any nasty surprises.
About the Author :
Loans Leader provides great articles based around Loans
More Useful Resource and Updates on low interest rate student loan consolidation
- Jobless rate jumps to 5-year high of 6.1 percent; home loan troubles break records again (The Standard-Times)
WASHINGTON ? The nation's unemployment rate zoomed to a five-year high of 6.1 percent in August as employers slashed 84,000 jobs, dramatic proof of the mounting damage a deeply troubled economy is inflicting on workers and businesses alike.
- Home-loan troubles break record again (Seattle Times)
A record 9 percent of U.S. homeowners with a mortgage were either behind on payments or in foreclosure at the end of June. Washington state's troubled-loan rates remain low, although there are modest signs they are growing.
- MAYBANK SINGAPORE LAUNCHES SPECIAL HOME LOAN PACKAGES (Bernama via Yahoo! Malaysia News)
SINGAPORE, Sept 6 (Bernama) â?“ Maybank Singapore has launched two special promotions for home loan customers to mark the bankâ?™s 48th birthday and also the 48th year in which the branch has made its home here.
- Maybank Singapore Launches Special Home Loan Packages (Bernama)
SINGAPORE, Sept 6 (Bernama) -- Maybank Singapore has launched two special promotions for home loan customers to mark the banks 48th birthday and also the 48th year in which the branch has made its home here.
- (AFX UK Focus) 2008-09-02 05:57 Westpac to cut variable home loan rate by 0.25 pct (Interactive Investor)
SYDNEY, Sept 2 (Reuters) - Westpac Banking Corp , Australia's fourth-biggest lender, said on Tuesday it would cut its standard variable home loan rate by 0.25 percent after the central bank cut official interest rates by similar margin.
- Money Panel: Home loan better than 403b variety (The Salinas Californian)
QUESTION: In October 2007 I took out a loan from my 403b for $50,000 at 9.25 percent interest. The repayment is through payroll deduction at $462 every two weeks for five years. The loan payments are repaying my 403b plan, including interest, with after-tax dollars. But I understood the repayment would come from pre-tax dollars, because the payments go back into my 403b account. In fact, the ...
- Commonwealth Bank cuts home loan interest rates by 0.25% (Thaipr.net)
The Commonwealth Bank announced that it was cutting its variable rate home loan interest rates by 0.25% pa. The new rates will be effective from Monday 8 September 2008 for new and existing customers.
- Home owners have been cut some slack (Mudgee Guardian)
Mortgage holders in Mudgee are expecting to save about $50 per month on the cost of an average home loan after this week?s interest rate cut.
- Home loan troubles break records again (AP via Yahoo! News)
The source of trouble in the mortgage market has shifted from subprime loans made to borrowers with bad credit to homeowners who had solid credit but took out exotic loans with ballooning monthly payments.
- Federal Student Consolidation Loan Interest Rate: Consolidate College ...
... loan to lock in historic low student loan interest rates, ... your federal student loans now, you secure today's low interest rate for the life of your loan. ...
- Low Interest Rates Encourage Student Load Consolidation
... interest rates to lock in a low fixed interest rate on a consolidation loan. ... These loans have a fixed five percent interest rate, so it is generally not ...
- Student Loan Consolidation Interest Rates
STUDENT LOAN CONSOLIDATION RATES: Low Fixed Interest Rate. ... your federal loans now, you can lock-in your low FIXED interest rate for the ...
- FinancialAid.com
Directory of scholarships, student loans, schools, and more.
- Low Interest Student Loan, Nelnet Consolidation, Consolidation Loan ...
Low Interest Student Loan at Nelnet. Specializing in nelnet consolidation, consolidation loan nelnet student, low interest ... interest rate student loans ...
- Archived: OPPORTUNITY FOR LOW INTEREST STUDENT LOAN CONSOLIDATION RATES ...
OPPORTUNITY FOR LOW INTEREST STUDENT LOAN CONSOLIDATION RATES EXPANDED ... student loans are combined into a single loan, and the interest rate is ...
|
