If you’re in the market for a personal loan, you have several options from which to choose. But not all personal loan lenders are equal. Some offer better personal loan interest rates, better perks, and more flexible terms than others. Check out these tips to find the right lender for your needs.
Before applying for a personal loan, it’s good to compare rates and loan terms from several lenders. It will help you learn how much money you can expect to borrow and what price. The more you look, the more likely you will find a lender that offers favorable terms that suit your needs.
Check Your Credit Score
Check your credit score to help you understand the interest rate you can expect, helping you decide when to apply for a loan.
It won’t be easy to get a copy of your credit report. You should contact one of three major credit bureaus: Equifax, Experian, and TransUnion.
Review Both Annual Percentage Rate (APR) and Monthly Payment Amount
The APR is a percentage that estimates your total loan payment for one year, factoring in all interest and fees. When comparing loans, consider the annual percentage rate (APR) and monthly payment amount.
Lantern Credit says, “Some lenders will try to convince you that signing up for a longer-term is better for your budget.” So you should calculate your monthly payment for both five-year and 10-year loans.
Look for Flexible Terms
It will allow you to take out a personal loan for an amount that fits your current financial situation without making drastic changes later. For example, some lenders offer loans with interest-only payments for up to two years, after which you can choose whether or not to start paying off the principal.
Look for a Low-Interest Rate
With a lower interest rate, you will pay less money over time. It will also help you get out of debt faster and save money on finance charges in general. While a low-interest rate is important, make sure it isn’t so low that you have trouble making payments in case of some issue with your financial situation.
Before you start shopping around for loans, getting pre-approved is a good idea. A pre-approval process can help lenders gauge your creditworthiness and show them that you are serious about taking out a loan. It also makes it easier to compare offers, as they will all depend on your specific financial situation.
Look for Good Customer Service
How well your lender treats you can make a big difference in how successful your loan experience is. So, research your selections to determine which lenders will most likely give you a positive experience.
Finding a personal loan lender is not as difficult as you may think. As long as you take some time to shop around and know what you want, it’s not hard at all.