When it comes to finances, more people are likely to turn towards a credit card, due to their bonuses and ease of use, than a personal loan. However, recent studies show that more and more Americans are opting for personal loans. With the rising debt throughout the country, from student loans and credit cards, and emergency expenses arising each day, a quick loan is enticing. How do you find the best online personal loan, though? In recent years, many online lending companies have stepped forward – most are fantastic at what they do. Here are five tips for finding the best personal loan for your needs.
Shop Around
There are countless lending companies offering personal loans online. You’re free to shop around and receive quotes and rates. In fact, the easy comparison of quotes is likely the biggest benefit to shopping online for a personal loan.
Often, you’ll receive a discount for applying online.
Credit Card Consolidation
One of the driving reasons to acquire a personal loan for many is to consolidate credit card debt. If this is your case, then make sure to follow through with the payments. Remember: It’s easy to rack up new credit card debt while paying off the old. Find a company that makes paying down your credit card debt easily.
Read the Fine Print
When dealing with any financial institution, there will be plenty of fine print to sift through. Do not rush this process. You will want to ask for a full disclosure of the loan terms and ready every word on the document. There are many different terms offered by online lending companies. Find the best one for you from a contractual standpoint, too.
Check Your Credit Score
Your credit score will make a huge difference in the personal loan you receive. As such, you’ll want to check your score to ensure it is accurate. You could pay significantly more with bad credit or receive a fantastic rate of <10% with good credit.
Origination Fees
Many lending companies offer low interested rates, but this is because they tack on origination fees that raise your interest rate significantly over time. You would be better off with an online lending company offering a higher interest rate out of the gate instead of one hiding origination fees in the fine print. Find the perfect online lending company for your personal loan needs today!