5 Things to Consider Before You Get a Personal Loan

Personal loans can be really convenient tools for all sorts of different life situations.  You may need a new car, one of your kids could be going off to college, or it could be time for some home renos or that overdue golf vacation.

Whatever the reason, a personal loan can help make it happen.  Of course, like with most things in life, not all personal loans are created equal, and jumping on the first one that comes along might not be your best option. Remember to choose the type of loan that suits your needs and pick a repayment term that you will be able to manage.

Here are five things to consider about personal loans that will help you make the right choice.

What Are the Requirements?
Before you get into the details of the loan, you need to know if you even qualify.  Personal loans aren’t all about just strolling in and ordering from a catalogue.  Lenders have requirements, and you have to meet them before you can even get a loan.

Different lenders will often have slightly different requirements you have to meet, so take a look into each one before you begin the process.  Some of the more common requirements deal with:

  • Employment status
  • Length of time at current job
  • Income
  • Debts
  • Assets
  • Credit status

At Fast Access Finance, we will look at your credit status, but that’s not the only factor we take into consideration during the loan approval process. We understand that you may not have the best credit rating, but as long as we can see that you have the ability to repay your loan in a timely matter, we will consider your application.

Secured or Unsecured?
One of the things you should consider is whether you’ll try for a secured loan or an unsecured loan.  Basically, unsecured loans are personal loans that are given based on your meeting the employment and credit requirements.  That is, you don’t have to put up any collateral or assets against the loan to get it.  With a secured loan, you must put an asset up as collateral against the amount of the loan.

Interest Rate
Interest rates should be one of the main things you take into consideration before you apply for any type of loan. Quite often, people are in such a hurry to get their hands on the money that they end up accepting a payday loan with an interest rate that might be several percentage points higher than they could have received with a personal loan. The interest rate on personal loans can actually end up making it a more affordable option in the long run.

Term of the Loan
Along with the interest rate, the term of personal loans is also an important consideration.  Again, don’t just opt for the longest possible term to make your monthly payments as low as possible.  Take the interest rate into consideration and look for a term that gives monthly payments you can make comfortably, but also enables you to get that loan paid off in the shortest possible amount of time.  Unlike other lending companies, Fast Access Finance offers a range of repayment terms from 6 months to 1 year, so you can select the term that you feel most comfortable with.

Is the Lender Reliable?
It’s important to keep in mind that personal loans aren’t all about the borrower seeking the approval of the lender.  If you aren’t seeking a loan from a nationally recognized lender like a major bank, you need to know that the lender you choose is reliable.

Look for a lender that offers a few different loan options and has established a track record of giving loans that are similar to what you need.  Make sure your needs are met, and that they’ll continue to be met throughout the life of the loan. Fast Access Finance has helped thousands of people just like you get the personal loans that they need to be in control of their finances. If you are looking to apply, visit our online personal loan application form to get started!