Itching to Get a Personal Loan? Here Are the Things You Need to Consider First
Are you in need of a personal loan? Chances are, most of us will find ourselves in this situation at least once in our lifetime. Since not all of us are born with a silver spoon in our mouths, there are days when we really need the extra money to make it through the month.
With whatever purpose you have in mind for borrowing money from a bank or other credit services, whether it is a short-term or a long-term loan, one thing is for sure: you should do your due diligence and homework before you affix your signature along the dotted line.
Personal loans don’t need collateral; which is why they are termed as an unsecured loan. Unlike other types of loans like car loans and mortgages that are intended for a sole purpose, this one can be used for any purpose.
A lender will normally check your credit score and sources of income to check whether you are able to pay back the borrowed sum and those with the highest credit score usually get the lowest and best rates. But hold on, before you rush to secure a loan, here are some tips you need to keep in mind:
Analyze Credit Score
As mentioned, if you have a high credit rating, then you are entitled to the lowest rate. This is the measurement of how likely you are able to pay back the money you’ve borrowed, so, needless to say, lenders would use this to see if you are worth the risk.
It’s a rating from between 300 to 850, with 629 and below being the threshold of bad credit and 720 and deemed as an excellent credit score. This number is basically affected by two factors: how much of your credit do you use up and your payment history.
Plus, you make sure to check the fine print since some lenders have terms and conditions written in the smallest of font sizes at the bottom corner of the last page that most of us would normally choose to skip through.
Additionally, check if you are even eligible for a loan to save time and money, since you are doing the staff of the creditors a favor because they don’t have to process your papers or go through your paperwork.
Research, Research, Research
Do you love shopping? Perfect, since you will have to do some windows shopping in some instances; don’t settle for the first credit service or offer you get. Looking around for other options will help you find the perfect financing source.
You should always compare and see what best fits your capacity because each service will offer different terms and interest rates. In short, you should definitely pay close attention to the annual percentage rate, which will give you an idea of the real cost of a loan.
Don’t Look Too Desperate
You might be in dire need for some financial help, but don’t be obvious about it because it could hurt your chances too. How is this so? If you have many applications for a personal loan, especially if done online, this could leave a trail that lenders could trace before your approval.
Once they see that you have a lot on your record, then that could give an impression that you are in desperate need or you are knee-deep in financial trouble, hurting your chances of securing the money you want.
Check for Repayment Charges
Let’s say that you can’t stand the thought of having debt but really need to secure a personal loan. Know that some lenders impose charges if you pay the entire loan earlier than the time frame indicated on the contract. If you plan to settle the amount early, then you might want to find a provider that offers no repayment charges at all.
More in Loans & Mortgages
Going to Your Dream School May Hone Your Skills for Your Career, But Here’s How Early Applications Become Problematic
When the college admissions scandal erupted early this year, it gave out a bad reputation for the application process of most...October 23, 2019
“I Want to Save, But It’s Hard”: Here Are a Few Super Effective Ways You Can Fool Yourself Into Saving
Saving is the key to a brighter, financially secure future — this is something we all know about. And yet, there...October 22, 2019
Think You Need a New One? Here Are Things You Could Buy Second-Hand That Will Surely Save You Money
New isn’t always better and your savings would approve of that. We all need a lot of things, but that doesn’t...October 21, 2019
Will Your Family Inherit Your Debts Once You Die? Here’s the Scary Truth You Need to Know
With the left and right loans and debts from different lenders, it seems it’s impossible that you will be able to...October 18, 2019
Guess How Much Nicki Minaj, Who Retracted Her Retirement Statement, Earned Last Year
When Nicki Minaj announced that she was retiring in September, everyone was confused and her fans went wild. Is this for...October 17, 2019
This is How American Singer and Lion King Star Donald Glover Impressively Earned THIS MUCH Last Year!
It’s hard not to love David Glover in all his glory. The man is undoubtedly talented – from acting, singing, rapping,...October 16, 2019
This Model’s Brainchild is Now an Eight-Figure Company – That’s Because of These Jaw-Dropping Secrets
You always hear about successful entrepreneurs saying putting up your own business from scratch is hard. This is in no way...October 15, 2019
Thinking about a Career Change? These Are the Unexpected Things That Might Happen During the Process
The hard truth is this: if you really don’t want your work, it won’t adjust for you to like it. There...October 14, 2019
Superman’s Intervention: Here’s How Much Billionaire Li Ka-Shing Pledges to Aid Struggling Businesses in Hong Kong
Every cloud has a silver lining, the proverbial saying goes, and as much as it is nice to look at the...October 11, 2019