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The Secret of Getting the Most Out of Loan Promotions

A loan promotion is one means that you can save some extra money while obtaining the financing that you need. Loans can be an expensive affair, and any savings you can locate benefits your finances and puts more money in your pocket. Many private lenders and banks like to give out loan promotions to attract customers, and to differentiate themselves from the competition. If you are thinking about taking out a loan, then it is recommended that you scour around for the best loan promotions. Here are a few tips to finding the best deals on loans so that you can save money.

Keep Your Eyes Open

The fierce competition between the various banks and lenders makes for an extensive availability of promotions, as well as fee reductions and discounts to people who are looking for a loan. These promotions can come in the form of interest reductions, fee waivers, and reduced payments for debt agreements. With lenders fighting for your business, it is advantageous to make their loan deals as attractive as they can. It is in your best interest to scour through the different promotions and take advantage of the best discounts offered. This is why it is crucial to look at more than the interest rate on a loan when shopping around. Consider all the available promotion options and weigh them carefully. These promotions can quickly add up and save you an enormous amount in the long run.

Look For Banks That Will Waive Fees

It is extremely common for lenders and banks to charge their customers a loan origination fee. A loan promotion you should search for is one in which a bank or lender will waive this. The fee goes towards covering banks and lenders’ administrative costs that come with submitting a loan application. However, to attract new customers, many lenders and banks will waive their origination fee entirely. If you look around at different lenders, then you will likely find a slew of them that offer to waive this fee on their loans. If not, then it is always worth asking.

Look For On-Time Payment Promotions

Although it may seem intuitive that you would make all of your loan payments on time, the number of people that are not able to make on time payments may take you aback. Lenders expect all payments to be on time, and so they are quick to punish those who regularly make late payments. However, what many people do not know is that there are many lenders out there that are more than willing to reward those customers that make the effort to make on-time payments on a consistent basis. Shop around for lenders and banks that offer a discount for those borrowers who have a strong history of making their payments on time. Although this discount may seem small, when considering a loan that is for 10 to 15 to even 20 years, the discount will add up.

Look For Direct Debit Promotions

This type of promotion is likely the most popularly offered among lenders. It mandates that you must agree to have the bank or lender deduct your monthly payments out of your bank account automatically. If you are willing to have money taken out of your checking account automatically, then many lenders are willing to give you a nice discount on the interest rate of your loan. In fact, this promotion can save you as much as .3 percent on your interest rate. However, the average discount tends to be closer to .25 percent. Although this may seem like a small amount to you, keep in mind that it will add up to a substantial quantity over the length of your loan’s term. Both lenders and banks like to give out this promotion as it helps them save time and money on the administration and paperwork of your loan payments.