When you find yourself in a situation where you need extra money to be used for an emergency or large purchase, most often a personal loan comes into mind. Getting a personal loan can be both good and bad. To avoid any bad outcome on getting a personal loan. Having knowledge is the best way to go about it. Here are some facts about personal loans that can help you weigh in on your decision to get one.
- Keeping your amount to be financed at a minimum brings a better deal. If you have extra cash that you can spend, use it and just get a personal loan to add for the amount that comes short. Having a lower amount of loan creates a lower interest rate and less cost on borrowing the money.
- Only take the loan when you really, really need it. Don’t get a loan on a not so important matters like buying clothes from any online shopping store when you have the extra cash you can spend. If your extra cash is just sitting in a bank or even under your pillow, use it instead of getting a personal loan. This will save you a ton of money paying for interests.
- Research on lenders and banks who can give great deals on personal loans. One way to take advantage of the age of internet is having the information very accessible wherever you go. Researching on your lenders and banks can help you find the best deals available.
- Work on the 3 C’s that your lenders will look into. The 3 C’s that money lenders in Singapore and other bank look into are “character”, “capacity”, and “credit”. Lenders and banks will want to know the character of the person they are dealing with. They will definitely investigate on your capacity to pay and how you deal with credit. If you want to make sure you get the loan approved, work on your 3 C’s.
- Reading your contract and other documents before signing can save you more than you can expect. These contracts and documents often have fees that can be done away with. Reading before signing allows you to be able to negotiate and let go of any fees that are not really needed in the loan application.