subject: Six Tough Questions to ask Lenders before Committing to a Low Rate Personal Loan - Don't Make Fatal Mistakes [print this page] Six Tough Questions to ask Lenders before Committing to a Low Rate Personal Loan - Don't Make Fatal Mistakes
Are you interested in how to get a low rate personal loanthe right way by asking the right questions?
Banks, financial investors, and other lending institutions including those found on the internet are the available opportunities. To avoid confusion as regards who to do business with, it is important you need to ask potential lenders some questions before making any type of commitment.
It is your right as a customer to ask lenders questions and do not do business with any of them that is not ready to answer your questions in detail. Beware of lenders who avoid direct answers to questions in a bid to rush you through the loan application process. These are bad indicators that something is wrong. Quality lenders who have nothing to hide will be ready, willing and happy to answer to your requests.
Many times, a lot of customers are not willing to ask questions out of fear that the lender will look down on them. This should not be so. As a consumer, always prepare yourself with the right information that will help you make better decisions.
Firstly, know the total amount to be offered for low rate personal loanwill help you know if the lender will be able to meet your needs or not based on the amount of money you are looking for. Secondly, ask about your personal loan terms so as to know if the payment is going to fit your monthly budget.
Thirdly, ask the lender about the required verifications you will need to provide and how soon the loan will be available once they can have a decision after you have provided all the necessary documentation. Though the documents for verification vary, you should include ID, income, tax returns, and a completed loan application.
Fourthly, try and know the rate to be paid on the loan. If the personal loan lender is offering a rate that is lower than the competition, he will push the rate at you. However, you need to ask exactly how much the loan is going to cost you. Try as much as possible to get an itemization of all fees of the loan from the lender so that you can compare the information with that of other lenders.
Also, ask if there is provision for prepayment or not as this can make it possible to pay the loan off early so as to save on interest to be paid over the life of the loan. If prepayment penalties are part of the low rate personal loanoffer, then it is not advisable to work with a lender that requires prepayment penalties as part of the loan offer, if you plan to pay off the loan before it matures.
In conclusion, inquire from the lender about how he will be using and securing your personal information. Though most lenders will use encryption and a firewall for their computer storage of your personal information, ask about it anyway. Make sure you are guaranteed that your name and personal information will not be sold to other solicitors so as to avoid unwarranted telemarketing calls and e-mails.
Though asking questions from potential lenders before making a commitment to a personal loan takes time and effort, it is worth it in the long run. It is important that consumers arm themselves with the best possible information as this is the only way to make important decisions on financial issues in order to avoid learning the hard way.
