Getting A Personal Loan
There are a lot of money-hungry scammers out there and even more horror stories of loans gone wrong floating around. Everyone seems to know someone who lost “everything” because of a bad deal. While this does happen sometimes, it’s pretty uncommon.
Things can go wrong quickly if you get a loan that didn’t come from a good place, or you weren’t prepared for the financial burden of it. Some of the most common disasters that give loans a bad name include:
- Being taken advantage of
- Not finding the better deal faster
- Overwhelmed by the loan amount
- Hidden fees you didn’t realize
The best way to prevent yourself from any of these problems is to know what you’re getting into and what to look out for. We’re going to be covering this today in this blog.
Before taking out a loan, keep these 5 tricks in mind to help you get the best deal out there. Following these simple tips can save you thousands of dollars in the long run. If they helped you out, let us know!
1. Don’t Just Trust Your Bank – Always Window Shop!
You’d be surprised at how many people got some of the worst deals right in the office of their very own bank. Without excellent credit scores, a long history of open accounts, and a great source of income, banks aren’t eager to give you a low-interest loan.
While it’s fine to look into what your bank has to offer, you may be getting an even better deal if you go through a trusted online loan lender. Some of the best out there are:
2. Just Borrow What You Really Need
The easiest way a loan can snowball you right into a bigger mess of debt is by being more than you manage. It’s alright to take out a loan when you need one, for an emergency or a project or a new business, but it can catch up to you fast if you’re not prepared.
One way that a lender can get you is by offering you a higher amount than what you need, and it’s always so tempting to accept it. Extra money is always good, right? In this case, wrong!
More money you receive means the more money they’ll receive in interest rates. To end up paying them back the least amount of money, borrow as little as possible.
Another way that loan companies try to draw you in is by offering extra benefits. Usually, these promises aren’t always reliable, like cashback or payment vacations. You’ll see higher interest rates accompany these extra bells, and it isn’t what you need right now.
Stick to your original dollar amount and don’t be tempted to go above it unless you have to.
3. Use A Loan Connection Service
A real game-changer for borrowers was the introduction of loan matching sites, like iCashLoans. These platforms are designed to speed up the process, keep you protected, and make it a little easier to handle.
To use a loan connection service, which is entirely free and obligation-free, simply go to one of the websites and fill out their short, brief application. Next, you’ll just wait for a few minutes while the platform puts your application through to their network of trusted affiliated direct lenders.
Once the lenders have pre-approved you for a loan, the connection service shows you the offers you could have and you’re able to compare and research each one. If you like it, great! You found a loan!
Some of the best-matching sites that provide this service are:
4. Watch Out For Extra, Unnecessary Fees
Never pay more than what you have to! Some loans will throw in extra fees for things that shouldn’t be there, like charging you extra for paying off the loan early. Isn’t that horrible?
The worst part is that sometimes a loan company will disguise these fees. Always check the APR on your loan offers and talk with someone about what the details are. Never pay a fee if you don’t have to, and look into loan offers that have less additional charges.
In some cases, interest rates may be higher with a loan that has fewer extra fees, like an origination fee or early payoff fee. If you compare these higher interest rates with the cost of the fees combined and they aren’t a better deal, you can probably accept the fees.
It might seem a little scary and like too much math, but your money is important. Always make sure you’re only paying the company what is fair and don’t let yourself be taken advantage of.
5. Do What You Can To Improve Your Credit First
Typically, the better the credit score, the better the offer. If you have a high credit score, you not only have more options available to you but a better chance at finding low, affordable rates.
Not everyone can have excellent credit, especially in the economy right now. That’s okay because a lot of companies will still give loans to borrowers with poor credit history, but at a steeper interest rate. If you want to avoid this, make little changes in your credit usage while you can leading up to the time when you need to apply for the loan.
Some credit problems can’t be easily fixed as your credit history is too short. Some things you can do to get your credit score up a bit lessen your utilization, always make the minimum payment on time, and don’t apply for too many loans at once. Too many inquiries look bad on your report.