Choosing the right bank to file a personal loan with is as
daunting as paying the dues itself. There are vital factors to where
borrowers should base their decisions before making up their minds. Some
are obvious considerations while some are often overlooked.
Here are the things you need to know before signing a policy and contract with bank representatives.
1. Interest rates.
Banks give different interest rates, and not all loan payment schemes have the same policies. Secured personal loans have relatively lower interest rates when compared to unsecured personal loans. Advanced loans, nonetheless, can have higher interest rates than what unsecured ones have.
Always widen up your list of options. Compare interest rates not of different loan plans within the same bank but should be compared among banks. The ratio of interest rates should also be practically proportionate to the term (duration) of payment. Remember that some lenders may offer loans with lower interest rates but with shorter term of payment, so be wary.
2. Company reputation.
Many aggressive lending companies and banks do whatever it takes to get clients by whatever means possible. Banks and their employees are the best salesmen! They have compelling talkers that often leave grey areas but end up convincing clients anyway. Some even resort to blackmailing, often by using loan sharks and other threats.
Research if the lender has a good history in honoring contracts and not blatantly violating them. Avoid very lenient banks that would extend payment period on the condition of doubling the interest rate without giving you other options. They surely have hidden agendas.
Coaxing banks are obviously after your money more than you are in need of their money. They are the ones that enter an agreement with borrowers in a not-so-good faith, so better avoid them before you get mired in debt.
3. Hidden charges.
Before filing your application for a personal loan, always scrutinize the payment scheme and know every item to pay for. Hidden charges are very prevalent in almost all kinds of financial transactions, be it credit card bill, phone bill or even school tuition. These are the vague and undeclared dues which are not clearly shown in contracts or policies.
Don't get carried away by glib talkers. Always keep in mind that they are sellers and they will do anything to close a deal even at your own cost. Lenders are walking billboards with neon lights that spell all the upsides - only the upsides - and hiding the downsides.
For this reason, it is best for you to fill out all grey areas in your mind and answer all lingering questions - whether you've already asked them twice or they just popped out of curiosity - before giving your final decision. All details should be laid out in front of you, both big and small. Know everything you want and need to know before signing a contract for a personal loan so you won't get mired in debt and suffer in the long run.
Here are the things you need to know before signing a policy and contract with bank representatives.
1. Interest rates.
Banks give different interest rates, and not all loan payment schemes have the same policies. Secured personal loans have relatively lower interest rates when compared to unsecured personal loans. Advanced loans, nonetheless, can have higher interest rates than what unsecured ones have.
Always widen up your list of options. Compare interest rates not of different loan plans within the same bank but should be compared among banks. The ratio of interest rates should also be practically proportionate to the term (duration) of payment. Remember that some lenders may offer loans with lower interest rates but with shorter term of payment, so be wary.
2. Company reputation.
Many aggressive lending companies and banks do whatever it takes to get clients by whatever means possible. Banks and their employees are the best salesmen! They have compelling talkers that often leave grey areas but end up convincing clients anyway. Some even resort to blackmailing, often by using loan sharks and other threats.
Research if the lender has a good history in honoring contracts and not blatantly violating them. Avoid very lenient banks that would extend payment period on the condition of doubling the interest rate without giving you other options. They surely have hidden agendas.
Coaxing banks are obviously after your money more than you are in need of their money. They are the ones that enter an agreement with borrowers in a not-so-good faith, so better avoid them before you get mired in debt.
3. Hidden charges.
Before filing your application for a personal loan, always scrutinize the payment scheme and know every item to pay for. Hidden charges are very prevalent in almost all kinds of financial transactions, be it credit card bill, phone bill or even school tuition. These are the vague and undeclared dues which are not clearly shown in contracts or policies.
Don't get carried away by glib talkers. Always keep in mind that they are sellers and they will do anything to close a deal even at your own cost. Lenders are walking billboards with neon lights that spell all the upsides - only the upsides - and hiding the downsides.
For this reason, it is best for you to fill out all grey areas in your mind and answer all lingering questions - whether you've already asked them twice or they just popped out of curiosity - before giving your final decision. All details should be laid out in front of you, both big and small. Know everything you want and need to know before signing a contract for a personal loan so you won't get mired in debt and suffer in the long run.
