Things You'll Need:
- desire to find out loan fees and interest rates
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Step 1
Make sure you understand the concept of loan interest rates. Basically, interest is the price you pay to borrow money. You are either paying interest, such as when borrow money from a lender, or receiving interest, such as when you purchase a certificate of deposit or have a savings account.
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Step 2
You should understand the language of loan interest rates. Interest is often referenced by “annual percentage rate” (APR) and “annual percentage yield” (APY). Consumer loans are generally referred to by APR and deposit accounts are referred by to APY.
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Step 3
If you are comparing loan interest rates, the two types of loans are secured and unsecured. A secured loan has collateral, such as a car and home loan. An unsecured loan doesn’t have collateral, such as a personal loan, credit card debt, or a student loan.
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Step 4
Find out what your credit rating is. This will be an important factor that will to a great degree determine the type of loan interest rate you will qualify for on most loans. If there is anything that needs corrected on your credit history, get this straightened out before shopping for a loan.
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Step 5
Shop around to find the best loan interest rate. A good way to do this is online, as there are sites that can help you compare. Another way to compare is to contact local lenders, and determine where you can get the best rate. If you are contacting local lenders, you may need to make an appointment to talk to a loan officer, and bring your financial information with you to the meeting.
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Step 6
Before signing for a loan, make sure you completely understand how the loan interest rate works, such as if it is a fixed rate or a variable rate. Also make sure you understand any fees, points, penalties or other charges that may be involved.
