If you are planning to take a personal loan, then you will always want to ensure that you get the best possible deal from your lender. Why not, after all, you are paying for borrowing money, and hence you will try to look for a loan that is cheaper and can be paid off as soon as possible.
Following are a few tips to find the best loan provider by comparing with different loan providers. You may also contact BingoLoans, who can provide you professional information about various kinds of loans one can apply for, depending on their needs.
1. Try to obtain quotes from minimum 3 different lenders
Nowadays there can be different lenders who offer personal loans. You can find online-only lenders, national banks, local banks and few credit unions.
You may often find major variation in their interest rates, terms of repayment, fees and time taken for approval. Therefore, it is necessary to get quote from multiple lenders so that you can at least make a comparison.
Often you can find online banks offering lower rates and also easy to qualify for loan.
2. Look for lenders who perform soft enquiry about credit score
Few lenders prefer to do hard inquiry about your credit report which may remain for next 3 years in your credit report that may hurt you.
On the other hand, there are few online lenders who may offer pre-approved loans and do a soft inquiry about your credit report too. All that they need is your permanent ID and few other basic information about you
By doing little shopping, you can find lender to do soft inquiry so that you may protect your credit report.
3. Always compare apples to apples
While comparing various loan offers received from multiple lenders, you must make sure to compare the offers that are quite similar.
For instance, if you compare any online lender with a public bank then the basis of comparison can be different.
Also, you must see the type of loan and compare the loan of similar type so that you can make a realistic comparison.
4. Look at the total costs
Since all of us prefer to get loan at cheapest rate, it is important to check their overall cost which should include both interest as well as the processing charges too.
Also ensure that the lender must also provide you with complete information about total interest that you have to pay over the full term of the loan.
Knowing about the complete cost you can decide which loan will be the cheapest for you.
5. Always read all the fine prints
It is very important to read all the terms and conditions of the loan offered by each lender which are usually written in fine print. Try to read them carefully and understand them too. In case of any doubt you must raise questions to clarify the same.
Make sure that there is no hidden cost or terms involved that may give you a surprise after accepting the loan.
Also, in the online loans, never click on I agree button without reading and understanding all the terms and conditions.