getting a loan

Life Hack: Getting a Loan That Won’t Screw You Over

At some point in your life, you might need a loan. Whether it’s to buy a house, car, or you simply need a personal loan.

If you’re worried getting a loan might get you screwed over, this article is for you.

Read on to learn how to find the loans that won’t take advantage of you.

1. Do You Meet the Requirements?

Most reputable loans have a lot of requirements to secure they get candidates who will be able to pay the loan back. Some of the basic requirements include:

  • Be 18 years of age
  • Show Proof of Income
  • Be a U.S. Citizen or Permanent Resident

These are a few of the requirements a reputable loan provider will ask for. If you don’t meet them, you might feel inclined to search for a lender who will ask for less.

This could result in a shady situation and higher interest and fees.

2. Repayment Flexibility

Repayment flexibility is a good sign in a lender. If you suddenly start making more money and want to pay off your loans faster, you should make sure your lender doesn’t have an early payment fee.

Some lenders will penalize you for paying early. These hard money loans offer repayment flexibility.

3. Fees and Charges

If you want to find the best loan that won’t give you unexpected surprises, check for a disclosed list of fees. Look out for these fees:

  • Early repayment
  • Service fee
  • Exit Fee
  • Withdrawal fees
  • Insurance fees

Take your time to understand the fees associated with your loan.

4. Customer Service

Good customer service is not the first thing people think about when deciding on a loan, but it’s also important.

However, good customer service is a sign you will always get help throughout the term of your loan.

5. Interest Rates

This is perhaps the most important thing to look into before getting a loan. Although this is how lenders make money, you also want to make sure they don’t rob you blind.

Make sure you pay an interest rate that you’re comfortable with and able to pay off.

6. Loan Terms

Depending on the Loan, you might be paying for an X number of months.

Most personal loans have 1 to 7-year terms. The more time you spend paying the lower your monthly payment will be. Longer terms also mean more interest.

Make sure the lender offers you the right term plan options for you to see the one you’re most comfortable with.

7. Paying it Off

The purpose of a loan is to help you during your current financial situation, but if you’re unable to pay it off, it might not be worth it.

Also, consider how often you will be making the payments weekly, bi-weekly, or monthly.

Getting a Loan Is a Big Responsibility, Do it Right

Finding the right lender that won’t take advantage of you is not as difficult as you think. The key is to know what to look for in a lender.

Make sure you know about interest rates, loan terms, and fees before signing on the dotted line.

Interested in more advice articles, visit our blog.