Sometimes, a household or an individual can find themselves in a tough financial situation and they might need a long term personal loan to help them balance finances or keep their business funded.
Moreover, an individual can apply for a long term personal loan if they need help with their business, in that case, they should consider what kind of loan should they get, secured or unsecured. Furthermore, they might get a loan if they simply want to do debt consolidation that will help them pay existing creditors.
Either way, in order to find the right long term personal loan, you should check some basic steps and prepare to find lots of information while only some will be valuable.
When to consider a long term personal loan?
Before all, before you even think of getting a long term personal loan, there may be some other options to explore first depending on your situation.
For example, personal loans can be great if you don’t want to pledge anything as a collateral (only unsecured loans, that is). On the other hand, unsecured personal loan usually has higher rates due to them not being… secure. So, if you are looking for a lower interest rate, you might go wth secured personal loan.
Don’t forget that there are many different types of personal loans like home equity loan and personal loans for people with bad credit.
How to pick proper long term personal loans?
First and foremost, you’ll have to find as much as information as possible about potential lenders. Look for factors such as flexibility, low or even no extra fees, and of course, a lender that is reliable. Also look for:
- Low or no fees. Some lenders charge only interest and no other fees, you should look for lenders like this, others may or may not charge for origination fees or late payment fees. If possible, stay away from these types of lenders.
- Flexible terms. There are lenders that will pre-pick some major term for you, again, you should go with flexible lenders that allow you to accommodate to a wider range of dates.
- Reputation. I can’t street how it’s important to have an outstanding reputation and flawless record. When you are looking online for potential lenders, look for reviews, longevity and last but not least status with the Better Business Bureau. If the lender has BBB accreditation it is a big plus.
- Informative and transparent business. A proper lender will give out every piece of information in order to satisfy their customer the best they can. Usually, they will give information about APRs, loan limits and terms, possible fees and other important information. It should be clear that if they are hiding something, you should run away from them as fast as possible.
- Low APRs. If the lender is advertising low-interest rate, triple check it if it’s in line with the competition.
Last but not least, before taking any sort of long term personal loan, educate yourself as much as possible. You should keep reading in order to make you know what you are getting yourself into.
Two very important tips for finding long term personal loans
1. Right term
When I am saying this, I mean you should see how exactly flexible your lender is on the loan terms. Some online lenders may only let you choose two or three major loan terms.
Choosing the right term is as important as finding the right loan because ultimately it determines how much you’ll pay the loan you borrowed. For example, a longer term can help keep payments manageable, but you’ll be paying much more in the end. On the other hand, a shorter long term personal loan will mean higher installments, but in a lesser time span. In the end, the choice is yours.
2. Beware of scams
Unfortunately, sometimes people are vile creatures and they only want to bring harm to others. In the same way, the are more than several unscrupulous lenders who want to scam people who are in tough financial situations. Deal with them with these easy cheat sheet.
- Upfront fees. Remember this, you should never, even pay any upfront fees if you are simply applying for a loan. If a lender demands a certain amount of money to evaluate your credit score and other financial information, you should turn around and run.
- Check, check, check… check! Make sure you triple check the borrower’s physical address which should actually exist. As said before, you should consider looking them up with the BBB.
- Be in control. If a lender threatens you, just turn around in the other way. It would also wise to report them to proper authorities.
- Don’t believe in guarantees. If a lender is a legitimate one, he won’t guarantee any kind of loan. First, he or she would have to check your credit history and financial information.
How to find best long term personal loans providers?
I would like to conclude this text by saying that you should not limit your search radius to either brick-and-mortar and online lenders when you are searching for the best long term personal loan.
Just remember this, online loan providers may be very convenient, but banks may have better APRs and better customer service.
And as always, be sure to pay off the loan as soon as possible. You should make a plan on how you will pay the loan and avoid the possibility of defaulting.
What do you think?