5 Tips for Obtaining the Best Personal Loan Possible

If you are looking to get a personal loan, it is important to take a proactive approach to finding the best possible deal. Do not let yourself got locked into bad terms if you can avoid it. People who take the first loan offer they get often end up paying higher interest rates and/or fees than they might have if they had shopped around more.

Know Your FICO

The free credit reports that U.S. citizens are entitled to by law don’t contain the FICO score that lenders use to determine your credit worthiness. Order a copy of all three credit reports with FICO scores from a reputable online vendor. People with an FICO score of 700 or above should be eligible for the best possible interest rate available, people with an FICO score below 600 are considered higher risk and may have to go to a lender who specializes in bad credit loans.

Check Your Reports

Examine your credit reports for any misinformation such as accounts that are not yours or negative items that should be removed. Dispute these items and have them removed before you start applying for a personal loan. Even point you can raise your FICO score helps lower the interest rate you will get on your loan.

Inquire Before You Apply

Talk to loan specialists and give them enough information to get an idea of what type of loan you might be eligible before they pull your credit report. Every inquiry into your credit reports negatively affects your score. Do as much loan comparison as you can without having your credit checked multiple times.

Keep Accurate Records

Loan terms may change from your initial consultation with a loan officer to the time you actually see the terms and conditions of the loan. Keep a record of everyone you speak with and notes about what they tell you. You may find that you don’t want to take the offer you’ve received and would to go back and talk to someone you spoke to previously. Just because you receive an offer for a loan doesn’t mean you have to accept it.

Pay Quickly

Calculate your monthly budget and free up as much money as you can to make your loan payment. The shorter your repayment terms are, the more money you will save on interest you pay over the life of the loan. Lenders also often lower interest rates on short-term loans because they don’t have to worry about inflation. Avoid loans that offer pre-payment penalties. If you can pay extra on your loan every month and reduce the interest you pay, your loan will be an even better bargain.

Taking out a personal loan is not something to do hastily. Gather your facts and speak with different financial institutions about what they can offer you. If you research your options diligently, you will be far more pleased when you sign your loan agreement.

 

About the Author: Tony S. is a writer, blogger, and graphic designer. He enjoys writing about a wide variety of niches including credit and finance. He occasionally contributes content to CreditLoan.com.

 

Comments

  1. Liz says

    Fico or Credit report is a very important thing to follow up with regards to borrowing a loan. However, one doesn’t have to worry about having a bad credit record because there are a lot of credit unions today offer loans for bad credit individual, so the credit is fair for all people
  2. Mila says

    Today there’s a variety of ways to borrow money and aplying for a personal loan is one of the most popular options. I am sure that it’s not worth to hurry, it’s important to take time and take a look at the all the options available. Credit score has an important maning, people with good and excellent credit scores can enjoy the best rates and offers. Also it’s necessary to find out how much money you need and terms when you will be able to repay the loan. Better off is to choose a few options and compare them. And of course if you apply for a loan it’s important to make sure that you will be able to repay it quickly and without any problems.
  3. Fiona says

    Well, decision to take out a loan is very serious and should be taken seriously. Before applying to the lender you should know what kind of loan you need, what’s your FICO, if the loan you would like to get is secured and unsecured and amount of money you want to borrow. All the details are very important, so pay attention to everything before you visit the lender. Do not borrow more money than you can pay back – that’s the golden rule. To get a loan with low interest rate and profitable conditions it’s important to get all the documents in order improve your credit and prove the lender that you’re a responsible borrower and lending you money makes sense.

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