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An Insider’s Guide To Getting A Short-term Loan February 5 2015 When it comes to taking out short term loans, the process of finding the right company that offers the best deal is really no different than shopping for any other type of product or service. Lenders are the same as any other business in that some are really good at what they do, most are adequate and there will be a few you want to avoid. Yet most people do not take the time to find the right lender for their needs when it comes to getting short term loans. In part this is understandable since most loans of this type are of the pay check or emergency variety when a situation has arisen where a person needs extra money quickly to pay a repair cost, cover a higher than expected utility or electricity bill or some other type of situation where money is needed immediately. What happens all too often is that a person in need of a quick loan simply signs up at the first place they find only to discover that they payment plan may be too difficult to pay off quickly or the interest rates are higher than expected. While most people manage to pay off the loan fairly quickly, there are some who get trapped in a downward cycle of having to borrow more money to cover previous loans. These types of loans can vary depending on the need as well. So keep in mind your situation when you are looking around for a lender who is right for your needs. Quite often, lenders will advertise exactly what types of loans they specializes so remember to start your search there. Here are a few tips and tricks to employ when shopping for short term loans. Know Your Credit Knowing your credit rating can help you get the best loan possible. While many loans of this nature often do not require good credit as your employment or having collateral is often the most important aspect. Having a good credit rating means you can probably take out a larger, longer term loan to not only pay off the immediate debt, but also address other issues as well. For example, if you were thinking about remodelling your home, a personal loan from the bank might offer you better interest rates and certainly better terms than short term loans. However, if your only interest is in paying off the immediate debt and your credit rating is still not very good, you should still take a little time to find the best lender for your needs. Stay Calm Whether you need a short term loan for an emergency or some other type of personal situation, the key is not to get into a rush. On average, it should take you from 20 minutes to perhaps an hour to properly search to find the right lending company for your needs, so you should have the time to research all the information first and getting the best deal. Besides, if you don’t have the time, then your situation is beyond looking for the right lender to start with, so you have no reason to get in a hurry in any case. Check Out the Company One problem with many short term loan lenders is that their business names will all seem alike. That’s because many less reputable lenders will try to copy or get as close as they can to the business name of a successful lender. So, when you start looking around, take a little time to check them out and look for the following; - How long they’ve been around - Look at the customer reviews - See if they belong to any reputable institutions Basically, the more established the lender, especially one with an excellent record or service, the better off you are in dealing with them for a short term loan. Check the Interest Rate Once you have narrowed your search to a few of the more established lenders, the next step is to check out the interest rates that they offer. This is pretty important as the higher the interest rate, the more you will have to pay. While most lenders will have roughly the same rate, there may be a few that offer discounts, specials or simply lower rates in order to pull in business. Be sure to check them out thoroughly before taking the next step. Total Amount The total amount you take out will dictate how much you have to pay back. Resist the temptation to take out any more than you need to make your short term payment. Instead, look to see the lowest amount that is available. Quite often, lenders who make short term loans will have the amount and interest rates available on their website, so go over the list to see which amount is the closest to your needs and then compare with the other lending institutions. Charges & Fees One of the less pleasing aspects about any business that has fees is that you usually do not see them until you have already settled on them to take the loan. Although they are required to show you all the charges and fees for their loans, lenders are will not often put them up front. So, be sure to go over all of their fees or charges to ensure that you have taken into account everything.  Payment Plan Here, you will need to see how they structure their payment plan. Most lenders are fairly flexible when it comes to paying it back all at once or in several payments. Look for any penalties to paying off your loan early as some lenders may have that as part of their overall charges. Once you have calculated the interest in paying back the loan, you can now make a final decision about which lender to choose. Short terms loans are made for several reasons. Just be sure that you take the time to look for the right lender whom you can work with to create the best deal for your circumstances. Click here to see previous blog entries
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