December 10, 2016

Think hard before you borrow

Applying for a personal loan is nothing to be apprehensive about. But taking funds from the wrong lender or funds beyond your payback capacity might land you in a muddle. Therefore, calculation and appropriate decision making is absolutely imperative. Well, at times of emergency you might not get the leisure to scribble on paper, but then again you are the one to qualify a situation as an emergency. Paying medical bills might be one or education costs for that matter but buying a sofa set might not be an urgent requirement. So, you need to prioritize. Once you plunge into the market to chalk out the best loan or lender for your needs you need to take a few pointers in your stride. Here’s a list of sorts, not necessarily in that order though.

  • Loan amount: The most important parameter. A single loan application should suffice your needs. That’s what you look for right?
  • Competitive rates: Loan application is not the end of your responsibilities it’s just a part of it. You have to pay the amount back with interest which might be one time, through monthly deductions or even at times on a weekly scale. So, what you look for are lower rates along with easier and relatively relaxed payback schemes.
  • Easy application: No one likes to spend hours or days on an application. Be it loan application or insurance financial transactions many a times goes through rigid and lengthy processes. So, try to go online and look for lenders who have easy yet transparent application system. Furthermore, the approval time is a major point of concern in cases of emergency. But if the process takes 10 minutes to get sanctioned and an hour to get funded it’s always very lucrative and effective as well.
  • Contractual terms: This is the document that is the primary proof of your association with the fund provider. You don’t want this to be strict or complicated. You should be more than happy if the contract has no clauses for requirement of collateral or assets, penalties for exceeding the payback date, security deposit or down payment, annual or maintenance charge. Also, online transaction facilities and account to account direct transfer adds to the flexibility. Transactional and contractual comfort is important and helps the fund provider to retain the customer.
  • Funds for bad credit: Funds for people with bad credit have been arduous to obtain. But recently the fund lenders have extended their services to those whose credit reports are not very clean. The ever growing cache of private lenders and agents have made it is easier to acquire a quick personal loan any time. So, if you have a credit report that you can’t be very proud of make sure you approach these lenders who never make a fuss on the same.
  • Customer service and consulting: Lenders nowadays have initiated the reshaping of customer care and also are trying to introduce the facility of free consulting. Customer care services generally deal with particular issues that might range from difficulties faced by potential customers while applying for loan to not receiving funds at a specified time. But if you are interested in another deal advertised at the fund provider’s website, you can consult a financial advisor recommended by the financial institution and that too for free. That’s useful isn’t it?
  • Security: When it comes to money security and confidentiality are very crucial. You don’t want poachers or hackers to acquire your personal information. That will be quite detrimental. Make sure the company you approached for funds is using encryption security in case of online transactions. Keep away from lenders offering out of the world deals and abnormally low interest rates. They generally turn out to be scam or frauds.

While sorting you might find that your personal loans lender doesn’t have a few of the aspects mentioned above. Be absolutely sure of your priorities and set them up carefully. Acquiring funds which are way beyond your paycheck are never advisable.

Sam Payn writes for leading online personal loans lender companies. Be it personal loan company or Credit Card Company – he contributes to most of them.