Here’s how to negotiate when you’re getting a loan!
When you’re going to get a loan, you don’t just have to sit there and hope you get a good contract. You can ask for one! This isn’t to say that you’ll get exactly what you want, but you definitely can negotiate. Here’s how to give yourself the best chance!
First, make sure you know YOUR situation. Before you even pick up the phone, take a look at your credit score. In Jamaica, you can get a free credit report every year from the CRIF website. Also, assess your finances. How much can you afford to pay back each month? Do you have other loans? What do those terms look like? This information can help you understand what kind of terms you can expect and what goals you can reasonably set.
Next, do your research! If you don’t understand the difference between loan types or what a fixed or variable interest rate is, you need to look it up. Don’t go in there without knowing the basic terms used in loan agreements. You also need to learn about what lenders offer. Don’t only look at the one you’re going to. Look at various competitors as well.
Finally, don’t be afraid to ask questions! You might be eligible for certain programs or rates. But you need to ask, because they won’t always tell you! Remember, a negotiation is a discussion. It’s not setting demands or forcing someone to give you what you want. Ask questions, be open to responses and be flexible!
Learn more about what to do before and after you get a loan here