Looking to use unsecured personal loans to help with your finances? Having a tight month with your budget and need a bit of money from a loan to help you get by with a couple of bills?
Before diving in head first with unsecured personal loans, you need to be aware of the 6 most important facts so you don’t dig yourself deeper into debt or have to owe more in interest rates.
Fixed Interest Rates
When doing research and finding the right loan for you, make sure you look for ones that have fixed interest rates only and not variable rate loans. Fixed rates will not have a surprise waiting for you down the road compared to a variable rate loan.
Shorter Loan Duration
It might sound odd to request to have shorter loan duration when making payments, but dragging out the payments so they are smaller only means you are going to be paying more in the long run. Keep it short and simple!
Total Cost Numbers
The TAR, or total cost for the loan, is a very important number to keep track of and compare with different loans. This is going to be the full payment for the entire loan and not all loans are going to have the same TAR.
Try to Avoid Bank Loans
If possible, avoid going to your bank for a personal loan. The process is very lengthy, the payments are large, and most people are denied loans after months and months of waiting for that much-needed help. Also, most bank loans come with surprise fees that make them even more expensive.
Know the Add-on Terms
Some loans have added fees for missing payments and other terms hidden in their contract. Make sure to find a transparent lender that will tell you all the fees and terms up front before you sign on the dotted line.
No Gimmicks, Just a Loan
Don’t be fooled by gimmicks trying to get people through the door for a loan! You just need a simple loan, no “sales tactics” by a lender.
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