The right personal loan lender can help you cover immediate expenses for a holiday, a debt consolidation plan, or a home renovation. But before you submit your application, make sure first that this type of loan fits your budget and financial situation. You also need to make sure that the creditor you’ve chosen is reliable and offers the best rates for your budget. To help you choose a lender that’ll help you reach your financial goals, here are some tips:
Compare interest rates
When looking for a reliable lender, always do your homework first and compare rates from different companies. If you have a poor credit score, expect interest rates that are higher than those offered to applicants who have a good credit standing. However, the rates should still be within a reasonable range. Fortunately, the Internet has made it easier to compare rates and loan packages. With just a few clicks, you’ll be able to reach several companies and take a closer look at their products and services.
Check the lender’s certification
The Internet is both a blessing and a curse. It makes it easier for you to apply for a loan, but it also makes it easier for scam artists to trick people into applying for a loan with unreasonably high rates and unfair payment terms. So when choosing a lender, make sure it has an Australian Credit License, and that the license number is posted on the website. Also check the website to see if it has a disclaimer about the risks you'll encounter when applying for a loan, which is a government-mandated requirement for all creditors.
Consider the company’s years of experience in the business
A company’s years of experience in lending money to people with both good or bad credit scores says a lot about its reliability and credibility. This isn’t to say that you shouldn’t try out fairly new lenders. But if you want a lender that definitely knows what it’s doing, go for one that has years of experience in the industry. When doing your research, it’ll help a lot if you read a bit about the lender’s history.
Look for one that offers flexible repayment options
A lender that offers weekly or fortnightly payment plans is an ideal choice if you prefer more frequent payments but don’t mind the slightly higher interest rates. Choosing a repayment option that matches your financial situation makes it easier for you to meet the deadlines and pay off your debt faster.
Take time to read the fine print
Before you sign that dotted line, carefully read the loan contract. Take a day or two to study the details. Don’t hesitate to contact the lender if you have questions or if you don’t understand some of the terms. When reading the fine print, see if the deal comes with a prepayment penalty. When you pay off a five-year loan within three years some lenders will charge you with a prepayment fee, which is also known as an exit fee. If you don’t agree with this condition, then it’s time to look for another creditor.
Applying for a personal loan shouldn’t be a difficult task, as long as you know what to look for in a lender. To get better terms and options, opt for a credible lender that provides competitive interest rates, has years of industry experience, and provides a highly detailed contract. With the right lender, your financial goal will become easier to reach.
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