You signed on the dotted line and now you must stick to the terms of your loan, right? Not quite.
Borrowers often make the mistake of assuming that all loan terms are set in stone. In reality, the best licensed money lender in Jurong East will be willing to negotiate those terms if your credit situation improves significantly. Depending on the changes, you could save up to tens of thousands of dollars.
Here is how you should go about doing it.
Before your renegotiate
Renegotiating a loan requires planning. If you find it tedious, just keep in mind how much money you will save in the long run.
- Read the fine print – Somewhere inside the thousands of words of your loan contract, you will find details such as prepayment clauses and renegotiation fees. The former will apply if you want to pay off the loan in less time than first agreed. The latter will apply to all circumstances, including when you want to pay a lower interest rate.
- Know your credit rating – A higher credit rating shows lenders that you are a ‘safe’ borrower. Lenders give such borrowers better terms such as lower interest rates and longer repayment periods. They may also waive certain fees and penalties.
- Compare – Armed with your new credit rating, approach another Jurong East money lender for the terms they would offer. You may also want to apply online anonymously to your current lender. This way, you will be able to find the best licensed money lender in Jurong East for your credit rating.
Every money lender prefers that you stick to the original loan terms. It saves them time doing paperwork as well as the money lost from loan terms that are better for you. They will budge only if you can make a compelling case.
After you have done all your research, approach your lender for a face-to-face meeting. This way, you can show them all the reasons why you deserve better terms. Bring along all the details and paperwork to support your case. Make sure you are meeting with a decision-maker, not just a low-level employee.
You should also bring along your own repayment history with the current lender. The best licensed money lender in Jurong East is more likely to want to retain you as a client if you have been responsible with repayments up till now.
Remember that your current lender is under no obligation to offer you better terms, no matter how much your credit has improved. Approach the meeting as a real negotiation, with give and take from both sides. Try to come to a compromise where everybody wins.
Things to remember
Loan renegotiation is usually possible only with unsecured loans since they are heavily dependent on credit rating. A legal money lender in Jurong East is less likely to amend the terms of a secured loan, where the borrower places an item (or several items) as collateral. That collateral lets the lower give the borrower better terms right at the start.
If you are using your credit report as the basis of the new terms, look through it carefully. It is possible that there are errors on it that give you a lower rating. If you find any, call the report provider immediately and ask them to amend the error.
Almost every legal money lender in Jurong East will be open to the idea of negotiating rates because they do not want to lose your business. If they insist on sticking with the original agreement that will cost you money, approach a different Jurong East money lender. They may be able to give you a debt consolidation loan with better overall terms.
Some borrowers may be forced to renegotiate a loan because of financial hardship rather than a better credit rating. In this case, the borrower’s finances are dicey and have left them on the verge of defaulting. Money lenders would rather amend the terms than have to write it off as a bad debt.
Renegotiating your loan rate is one of the best financial decisions that you can make. Always monitor your finances and speak to your lender if you believe you deserve better terms. A good Jurong East money lender will be happy to help.