iQuanti: A personal loan can be ideal for paying medical expenses, car repairs, or catching up on a few household bills when you're in a bind. If you're short on funds and want to know how to get a personal loan, here are three tips to help you through the process.
Compare multiple lenders
When looking for the right lender, keep in mind that you don't have to settle for the first one you stumble upon. Take time to get quotes from at least three lenders to weigh your options. You can also find lenders that will let you compare their loan offers without hard credit inquiries by getting prequalified. You'll want to find a lender offering great rates and loan terms that work for your budget and situation.
A few items to look into when comparing lenders include:
- Estimated monthly payment
- Interest rate
- Annual percentage rate
- Late payment fees
- Prepayment penalty
Something else to consider when comparing lenders are customer reviews. Read reviews online and ask friends and family about their experiences. This can give you a better sense of what your experience getting a personal loan may be like.
Consider different loan options
There are many different personal options you can choose from, including:
Cash advances
A cash advance is a short-term loan that can typically give you a few hundred dollars. The amount you're approved for is based on your income, and you can pay this loan back with your next paycheck.
Installment loans
An installment loan allows you to borrow a lump sum of money all at once and pay it back in a set number of monthly payments, or installments. Depending on the terms you agree to, you can pay off this loan in a matter of months or years.
Title Loans
A title loan is a short-term secured loan that can give you a lump sum of money in exchange for your car title. Your loan amount can be determined by the value of your car, your income, and other factors. You'll receive your title back once you pay off your loan, and can keep driving your car as you make loan repayments.
Lines of credit
A line of credit is a flexible loan that offers funds you can pull from whenever you need to cover expenses, up to your set credit limit. You can pay off your line of credit over time or all at once, and will only pay interest on the amount you borrow.
Establish a repayment plan
Establish a solid repayment plan before getting a personal loan. Work the loan repayment into your monthly expenses to make sure you can afford to make your payments. You can create a spreadsheet or download a budgeting app as a visual aid to help keep your finances in order.
Setting up automatic payments will also help you avoid missing a payment and incurring extra fees. Some lenders offer a discount to borrowers that use their autopay feature.
The bottom line
A personal loan can be a good option in a time of need. Compare lenders, consider different loan options, and always have a realistic repayment plan to get the most out of your loan. As always, do your research before you apply and read the fine print, so there aren't any surprises along the way.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
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Original Source: Three Tips for Getting a Personal Loan
