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When you
need a new car, you don’t just buy the first car you
see. You shop around to find the best deal. You should
follow the same smart shopping technique when looking
for a personal loan. Interest rates, fees and payment
options can differ from lender to lender and from loan
to loan, so check out several lenders before you decide
on a personal loan.
Here are
some important questions to ask potential lenders:
-
What
is the interest rate?
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How
long do I have to pay off this loan?
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What
will my monthly payment be?
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How
much interest will I pay over the total life of this
loan?
-
Do you
charge fees if I pay off my loan early?
-
What
fees will I have to pay with this loan, for example
origination fees, late fees, application fees?
-
When
will you charge me a late fee and how much is that
fee?
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Do you
offer a variety of payment methods including online
payments, pay by phone, payment by check or credit
card, direct debit from my bank account? Is there a
fee for any of those payment options?
The reason
shopping for the best personal loan on the best terms is
important is because you could save a great deal of
money. Choosing a shorter term for your loan can also
help you lower the amount of interest you pay.
The key is
to make sure you find a loan that fits comfortably
within your budget and one where you can make all your
payments in full and on time to protect your credit
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