Unique Ways to Qualify for Extremely Cheap Personal Loan Interest Rate, Even if You are With Bad Credit

Last Update: September 6, 2021 Loans

When you plan to use money that is not yours, you will be paying interest. But no one wants to pay high interest rates.

This article will give you advanced information on how to find the cheapest personal loan interest rates.

The truth is:

Americans overpay millions of dollars on their loan interest and credit card fees.

For those with bad credit, the difference could be huge.

So, how can we get the cheapest interest rates?

The loan market is huge. This is definitely an advantage because people have many choices. But it could also be a disadvantage because the offers are too many and people often skip many of them. That is one of the reasons why they pay higher interest.

Shop Around

This is one of the best tips that every financial expert should start with. There is no better way to see what is best for you than by asking. Apply with as many personal loan companies as you can and wait for offers. You lose nothing.

Many people are worried about applying with many companies at the same time because they think that their credit score will be lowered. Let’s finally clarify this because there are still many myths out there. When you apply for a loan or a credit card, lenders have to see your credit report. There are two types of credit pulls: soft and hard.

Soft credit pulls don’t affect your credit score anyway!

Hard credit pulls affect your credit score. Every hard credit pull cost you some points of your credit score for a few months from the check date.

So, what types of credit pull lenders perform?

Almost all legitimate lenders work that way:

When you apply for a loan, they perform a soft credit pull, which doesn’t affect your credit score at all. Once you agree on their terms and request the loan, a hard pull will be performed. This happens later in the application process. This would mean that your credit score will lose some points after you get the loan, but if you continue paying your loan on time regularly, you will continue building your credit score.

Is there any exception to that?

In some rare cases, there are some exceptions. Some of the largest companies are not direct lenders. They are marketplaces that connect lenders and borrowers. Once you apply with such a marketplace, your personal information will be sent to many lenders. Most of them will perform a soft credit pull, but there are chances that some of them will perform a hard credit pull.

Almost all credit card issuers and credit unions perform hard credit pull.

We will explain later about them.

Be careful with that.

How to know about that?

Most lenders that perform only soft credit pull should list that on their sites. They love to post this notification close to their application form. Here is how they look like:

If you see something like that, you are good to go.


When you only visit sites and put your details, which means completing the application forms, a hard inquiry shouldn’t be performed. Don’t worry about that. A hard inquiry should be performed after you have been approved and agree to get the loan.

Pros of shopping around:

  • You compare many offers so that you can pick the cheapest one.
  • Your credit score wouldn’t be affected because most of the legit lenders perform soft pull.
  • You get a better idea of the lending market.

Cons of shopping around:

  • Require some time.
  • Some companies perform a hard inquiry, which lowers your credit score.
  • Many calls.
  • Almost no other significant cons, because shopping around is something good.

Be Careful When You Plan to Get Many Loans Too Often