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It doesn’t matter if this is the nth time you’re taking out a loan or first time. You have to be on top of your game when finding a lender – someone who can be trusted and also, one that you are comfortable to work with.
For this to happen, make it a point that the lender in question is credible and experienced in this field. As much as possible, work with someone who is not going to trick you in paying twice or trice than what you initially owe to them. Additionally, you don’t want to bear any hidden costs simply because they’re the only entity that approves your loan application.
Always take into account that a credible lender is someone whom you could trust and work transparently by providing all the facts and data you need to know.
Annual. Percentage. Rate
Then in regards to the rates of interest, the very first thing you must know is the APR. It is critical to remember that the rate of interest determines how much you will end up “officially” in paying the entirety of the loan. Having said that, what you want in here is a lower APR. On the other hand, you simply can’t take the rates that you’re seeing on the website of the bank.
When reviewing the rates, consider that you are only looking at the “average”. Don’t expect that you’ll be given with the actual rate regardless of the type of loans that you are applying for.
Here’s the thing, your actual rate of interests depends on various factors. These typically include your credit rating and to what type of loan that you are applying for.
Furthermore, the interest rates are not the sole expense that you must think about when applying for a loan.
Ask for Payment Terms
Don’t forget as well that when looking for a lender, the payment options are thoroughly discussed to you. To give you an example, would they be willing to offer payments back one month in the event that you are struggling to pay your dues or will you be required to pay a hefty fee if you’ve missed or been late with your payments?
Also, inquire about “exit fees”. This is an important question particularly when applying for a long-term loan. If you find that you have enough cash in paying the loan at once, then you want to make sure that you could do that without incurring penalties. It’s ironic that there are lenders who would be charging you more in leaving the contract earlier than expected.