5 Little Known Tips when it Comes to Personal Loans

You may think you have it all worked out when it comes to personal loans, but hindsight is 20/20. These 5 tips aren’t well known, but they can help you to get the right terms for your personal loan. As you explore them, you will understand why it is so important to get a great deal from the start. It all begins with where you apply.

#1 - Avoid Interest

When possible, consider a personal loan from a friend or a family member. This is a great way to avoid paying interest. If you know someone that can help you then ask them. Make sure you work out a repayment schedule you are both happy with. Offer to write them some post dated checks that they can cash too so that they don’t have to wait for you to bring them money to repay it.

#2 – Check your Credit

You can’t negotiate the interest rate on personal loans until you know what your credit score it. Get copies of them from all three credit reporting agencies. Go through them line by line too. You need to make sure all of the information is accurate. If you find mistakes your credit score will be lower than it should be. It is very important that you take action to get those problems resolved. It can be a slow process, so don’t put it off.

#3 – Choose your Lender Wisely

There are many lenders out there when it comes to personal loans. Take your time to evaluate what your options are and what they can offer to you. Select your lender wisely to get the best rates and the best chances of approval. Start with your own bank or credit union that you have a good reputation with. That can help them to get you the loan you need.

#4 – Use Caution Online

Many people like to use the internet to find and apply for personal loans. This is a viable option, but you do have to be careful that you get a company that has a great reputation. There are plenty of scams online to be wary of, but also plenty of top notch lenders. The consumer has to beware though.

#5 – Consider Payday Loans

If your credit isn’t great but you do have a job, consider a payday loan. This is a process that doesn’t involve any credit check. It means that you can get the money you need typically that day or the next. You can go to a local lender or you can apply online. If you apply online, it means that you can have the funds directly deposited into a checking or savings account.

You should only consider a payday loan though if you need money right away. The interest is going to be much higher than a personal loan through other lenders. Yet it may be the only way for you to qualify based on your needs or your credit. Just do your best to pay it off as quickly as you can.