Money may not grow on trees nor buy happiness, however there are times when everyone needs some extra cash. It may be for a new wardrobe due to a successful job interview or diet. Perhaps you are the Father of the Bride or redoing a room for the newest addition to your growing family. Depending on your circumstances, you may want to look into a personal loan from from a bank or credit union or possibly use a local payday loan service.
In most cases a bank or credit union is going to be your better bet. The interest rate may be more favorable than a payday loan service. If you aren’t a member then you may want to check with a lending institution in your area with a good reputation or perform an online search for a lender or recommendations and advice. Most lending institutions will have a loan adviser available that you can contact to help you and give you information and guidance. You’ll need current information regarding any fees, hidden fees, interest rates, and down payments.
Longer repayment times will result in a smaller monthly payments, but the actual amount you pay will be greater. Wanting the payment as low as possible is always tempting, however you do want to keep that in mind that the repayment period you choose will be how long you have the burden of this debt and have an additional regular monthly payment. Choosing a higher payment over a shorter period of time will come with many rewards.
Payday loan services are often more expensive and rarely your best option. Typically they don’t check your credit so if there are some issues with your credit but you have proof of employment and bills in your name this may be an option for you. Payday loan services usually charge either a flat rate fee or a percentage of the amount borrowed.
You may have the option to choose between a fixed-rate or a variable loan. Fixed rate loans have a constant payment amount over time and the interest rate will be the same throughout the life of the loan. With variable rate loans the amount you pay monthly and the interest rate may fluctuate, reflecting changes in current lending rates. If the see an increase, you may be negatively impacted.
To get the ball rolling, you will want to contact a loan officer at the lending institution for complete details and to fill out an application. They will look at your banking history, credit rating, and debt-to-income ratio to determine your eligibility. After they make their decision they will then notify you with the results, including how much money you can borrow and finalize the terms of the loan.
Diligent research before taking out a loan will reap great benefits. Lending institutions vary and some specialize in particular types of loans and creditor types. Comparative shop for your loan to get the best service at the best deal. Having the facts at your disposal will only improve your decision making process.