If you’re looking for a personal loan, you should be meticulous enough. Understanding the nature of a personal loan can help, but you still need to be vigilant. Don’t be like other borrowers who simply leaped in the bandwagon and ended up miserable.
Listed below are some of the factors that you should look for in a personal loan lending company:
Proper Contact Information
The lending company must have proper contact information. Most fraudulent companies do not post an address so it makes it difficult to contact them in the event a borrower wants to pursue legal action. If you are borrowing from an online lender you obviously do not need to walk into a physical office or building, but the lending company should still have a corporate address listed on their website. Another strategy is to call or email the lender. The person on the other end should sound professional and provide a level of customer support you would expect from a lender you can trust.
Fees and Prices
Be very wary of a lender that requires an upfront fee or any prices before you apply. Similar to telephone or email scams that request payment before a service, if the lender asks for money before you receive your loan, walk away. It needs to be made very clear that never, under any circumstance, should you send money to any loan company just to secure a loan. Just think of this logic: you’re in need of money, and you’ll release money to secure the debt? That’s a load of lending bollocks!
Exact Terms & Conditions
It pays to be a responsible and educated borrower. Before you send out the application, make sure that you’re aware of important details. What is the APR? What in the payback period? What is the maximum you can borrow? A legitimate lender can provide clarity on its loan terms and tell you exactly how much the loan will cost at the end of its life. If the lender in question can’t do that, it is most likely a scam. All of these personal loan companies provide clear rates, loan terms, and other requirements.
Research is your best friend. Even before you send the application form, you should know the right details immediately. If you research properly, you won’t have any regrets down the road. You should also make a repayment plan to ensure that you’d meet the monthly requirements.