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Think carefully before borrowing. Is what you’re
borrowing for an essential need or just a “nice to
have?”
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Consider the time factor. Can you take the time
to save the money or is your need immediate?
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Do
your homework. Learn as much as you can about
different lenders and the personal loans they offer
before you choose a loan.
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Size up your options. Compare interest rates,
repayment terms, fees and types of loans before
making a decision.
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Understand before you sign. Always make sure you
understand any documents you’re required to sign
when taking out a personal loan before you sign
them.
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Ask questions. There is no such thing as a silly
question where your finances are concerned. If you
have questions about the paperwork or the
information included in your loan documents is
different than what the lender originally explained
to you, find out why before you sign anything. If
they are not willing to provide a clear answer, be
willing to walk away and seek your personal loan
elsewhere.
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Know what you can afford. Before deciding to
apply for a personal loan, make an in-depth review
of your financial situation. How much do you make
each month? How much do you pay out for bills and
other expenses? Are there any big financial changes
on the horizon?
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In hard times, talk to your lender first. If you
have difficulty keeping up with your personal loan
payments, talk to your lender right away. Most
lenders are willing to put together a repayment plan
to help you deal with the situation.
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Protect your good credit. The number one rule
for good financial health is to always make your
personal loan payments on time and in full.
