Finding a personal loan company can seem like an overwhelming process at first, but by doing a little research and asking the right questions you will find that it is easy to connect with the best personal loan company for your needs. Here are two Do’s and two Don’ts for finding a personal loan company in Texas:
Do: Ask About Fees
All financial products come with fees, and personal loans are no different. However, how you are charged to borrow varies greatly depending on the type of personal loan company you deal with. For example, some loan companies charge an upfront fee just to borrow the money while others are riddled with high fees at every stage of the borrowing process. Look for a personal loan company that works on a principal plus interest fee structure. This model allows you to pay a predetermined amount on a set schedule that will pay back both the principal of the loan and interest to the lender. This model can give you the peace of mind that there will be no surprises when it comes to paying back your personal loan. This type of model also allows you to pay your personal loan back earlier than expected and save you unnecessary interest.
Do: Ask the Right Questions
Taking a personal loan means that you will have to work closely with your personal loan company. Borrowers need to be certain that they are working with a company that fits their needs and provides them with the level of customer service they desire. Here are some important questions to ask a personal loan company:
- How do you communicate with borrowers?
- What are your turnaround times for personal loan approvals?
- Will this loan require a credit check?
- How will this loan effect my credit and can it help me build credit?
- Can I pay off my personal loan early without penalty? How do I do so?
- What interest rate am I paying?
- What is the term of my personal loan? Is this flexible?
A good working relationship with your personal loan company can set you up for success with your current borrowing needs as well as any future needs. Asking the right questions will guarantee that you know the intricacies of the personal loan you are considering. You can then be assured that you are making the right decision for you and your family.
Don’t: Take the First Loan Offered to You
There are many “too good to be true” lenders on the market and it is important to shop around. Make sure you do your research and find the personal loan company that is best suited to your needs. Talk to multiple lenders and confirm you are working with a personal loan company that is dedicated to your financial success.
Don’t: Apply with Multiple Lenders at the Same Time
Credible personal loan companies will almost always require some sort of credit information. This is a good thing as it can help the lender come up with a lending plan that is tailored to your unique financial needs. However, applying for too many loans at once can be a red flag to lending companies as each credit check becomes part of your credit report. Doing your research and employing the advice mentioned above can help you find the best personal loan company to work with.
Guarantee Loan is the top personal loan company in Texas with 10 locations in Texas. We will work with you to develop a plan that improves your financial situation with focus on customer service. Give us a call today!