10 Smart Tips To Keep In Mind Before Taking a Personal Loan

Sometimes I look at life, and all I see is a big financial game where there are few winners and many losers. It is up to an individual to determine which side of the game they want to play. You are either a winner or a loser, and your position is made evident by how well you are doing financially.

While life may try to force you to be a loser once in a while, there are measures that you can take to become victorious. One of such measures includes taking personal loans. Even so, some tips must be in your mind before you take these loans. Here are ten smart tips for you.

Determine Whether You Need It Or You Can Do Without It

There are a lot of instances where people feel the pressure to resolve some financial matters as soon as now. This may be the case. But just because you think you have to do so now, does not mean that it is a do or die situation. Analyze the problem and see whether it can hold on for a few days or weeks. Identify any loop-holes that you can use to maneuver around the matter until you can resolve it.

Ask Family And Friends First

Before you turn to websites that offer personal loans or to other financial institutions, ask your family and friends if they have the money so that they can lend you. This should be your first move every time. It helps you to avoid a massive debt because they do not charge you any interests. At least most of them do not charge interest out of the respect they have for the relationship. Take advantage of this.

 

Which Is Better a Pawn Shop Or An Online Portal?

There are no debates here for a lot of people because most people prefer online portals because no one wants to risk their properties. But are there advantages that a pawn shop has that the online portals do not have? Do not be too quick to settle for either of the above. Weigh them and see the next best move.

Go Over Several Options

When you are opting for an online means of getting a loan, take some time to shop around to look for the best and legit website. For instance, you can opt for Personalloans.com. It is a site that is reliable at any given time. There are so many websites out there, and you may not know which one to use and which one not to use. Take some time to read reviews and learn all you can. There is a lot more to learn through reading reviews, and the information you get will determine your next move.

Check The APR Being Offered

Typically, when you are dealing with websites such as Personalloans.com, there are a lot of lenders that can give you the loan. The first thing that you need to check is the APR. The APR will play a significant role in determining how much you are going to pay in the end.

 Some lenders charge up to 700% APR while another charge 300%APR A and others as low as 200%. Therefore be careful with the APR being charged lest you suffer the consequences of ignorance. 

6.You Can Always Pay Your Loans Early

You do not have to settle for the timeframe that the lenders give to you. When you apply for a personal loan, and the chances of you paying your debt ahead of time are very high, inquire about the early repayment charges. A lot of loan providers always have these charges. Therefore search for a loan provider whose charges are not too much and can favor your budget comfortably. Taking longer to repay makes you pay much more.

7.The Bigger The Loan, The Lower The Interest Rate

This is a great deal if you ask me. Therefore, when there are a lot of things that you want to settle, take a loan that solves everything.

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Ensure that you use the credit responsibly so that you will not need to take another loan for a very long time. If you are going to take a big loan, you may as well use it responsibly. Taking bigger loans will also eliminate the chances of you needing another loan a lot sooner.

8.Do Not Forget About PPI

Often, a lot of people ignore the Payment Protection Insurance. PPI can come in handy especially when you are taking a big loan. They always help a person to make their repayment whenever they are unable to make them because of sickness, loss of employment, and so on. There are a lot of things that can happen in between taking a loan and repaying the loan. Therefore, protect yourself and your assets.

9.Do Not Take Too Many Loans

Yes, personal loans are a quick fix, and you can get loans from a lot of online websites such as Personalloans.com and others. That does not mean that you should always turn to the online solution. When you take too many loans, it is recorded on your credit, and the lenders go through your credit record before any approvals. When they see your history, they may see you as a risk because you seem to have a lot of financial problems. This affects the approval rate by lenders.

10. Ensure That You Can Pay The Loan

In as much as you may be in a financial fix, ensure that you have a precise payment plan. Do not take a loan without a solid repayment plan because that will lead to a lot of problems. Late payments attract extra charges. Failure to pay your credit is even riskier. Some lenders contact collection agencies and you may end up losing more than you thought. Unless your payment plan is in place, avoid loans. The will be a source of all your troubles.

Taking personal loans may be unavoidable. But you must have these factors at the back of your mind every time you want to apply for a loan.

Are you looking for taking short term loans? Read this now!

About the Author Carl Gresk

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