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We all want to get the best rate possible when it comes to borrowing money, but how can you actually get the best deal? Whenever I'm asked a question like this, I always look at it from the creditor's perspective: the competition for loans is huge. Take your average high street bank, for example, and let's pretend for a second that another bank has just opened up opposite them. The new bank offers loans at a lower interest than the current one. It's at this point that, if I worked in the first bank, I'd be worried.

Loans can be one of the most successful (if a little risky) ways for creditors to make money. So by shaving a fraction of a percent off of the interest rate the bank opposite would quite happily draw in a good number of the first bank's customers. That's bad for business, so the first bank lowers their loan rates to match, and throws in a free gift. The price wars are similar in some respect to those in supermarkets. But I doubt you spend quite as much on your groceries as you do on taking out a loan. That's why it's important to get the best loan deal for you first time, rather than wishing you went elsewhere after you found out about another creditor.

When you try to get a loan, there are two things you should remember: what's the best deal for someone else is rarely the best deal for you; and they WANT you to choose them over every other creditor out there. In my experience, if you're looking to get the best deal on your loan you need to push both of those facts to the full.

Most of the time, the loan you want won't be anything like the "standard" one they offer, so let them know. If you need X from your loan, but aren't so keen on the Y they're offering, talk to them about changing it to Z. X, Y and Z can be anything, from a low interest rate, to quick payment, or perhaps being flexible about credit history. Failing that, just get up and go somewhere else.

The second rule is that, what with the huge number of creditors out there, you don't need to spend hours trying to squeeze every last perk from one loan if another creditor offers everything you need. Talking of "need", it really isn't the same as "want". Do a little research in to how much you can realistically hope to pay back per month, how much money you really need, and anything else that you can use to make sure you get what you want, and not what the creditor thinks you want.

So, in summary, work out what sort of loan you actually need, make a list of likely creditors, then go talk about customizing. Remember that you can always use companies against each other by suggesting that the other creditor was willing to give you a better deal, and ask what they can do to better it. If they're not able to offer you what you need, quickly cross them off and go to the next one.