Home Insights & Advice Features to look for in a personal loan

Features to look for in a personal loan

by John Saunders
16th Nov 21 3:37 pm

Taking out a personal loan can be a terrific way for you to pay off some debt, do some repairs on your house, or even to buy that pool for the back yard. They can be used for almost anything that you may need. Investopedia points out, though, that in order for you to get good interest rates, you must have an excellent credit rating.

You can find others that will offer you loans at higher rates, and some will even offer you funds with imperfect credit. These will have a high interest rate and will have a much lower amount that you qualify for.

Whatever your current credit and financial status is, you will want to look for some of the following things when you are doing your research. Check with numerous institutions and find the best one that works for you.

  1. Customer ServiceHow you are treated throughout the loan process is one of the most important aspects of the lender that you deal with. If you need to be able to get a hold of someone you want the ability to talk to a human. The bots that are found on most websites are great if you are looking for generic answers. When things truly need to be solved you will need a human on the other end of your call. The agents that you talk to need to be knowledgeable and helpful. And of course, if they cannot find a solution to your question, or problem, they need to try and find you an answer. Customer service is the most important aspect of any business. Without customers they have no business, so if you run across a company that does not live up to your standards move on to the next.
  2. FeesLook for a loan package that does not charge any types of upfront fees. Check an online site that compares personal loans. It is hard to find a lender that offers no fees at all, but some will only charge you a small amount. It would obviously be better for you if you could find one with no fees, but small ones tacked on are acceptable. Large fees and setup charges are cause for a red flag that tells you to walk away.
  3. Funding When you apply for a loan you do not want to wait weeks, or even months, before the funds are transferred over to you. Find a lender that will get the money that you need quickly, and without any issues. Online banking, and the innovative technologies that have arrived, make it easy for funds to change hands, so there is no reason that you should have to wait long after you have been authorised for your loan.
  4. Discounts You may not think of discounts when you are talking about loans, but you can find some if you dig deep enough. Lenders will give you offers that reduce some of the rates that they have for you. For instance, if you give them your bank information and authorise them to automatically take their monthly payments you should be offered a discount. If you have applied for the loan to pay off debt, see if they will give you a break if you let them pay the bill off directly.
  5. Flexibility You may want to have a loan with a short term that you can pay off quickly. Maybe you want to pay on it over the sum of ten years. A lender needs to be flexible in their payment terms, and they should offer you a few different options.

Finding a lender that will offer you a good personal loan, with great rates, is easier than it once was. Online comparison sites do all the leg work for you, allowing you more time to decide, and less time to find. Take advantage of the internet and the online tools available to you. They will help you a great deal when you are trying to find the perfect personal loan that is created for you.

 

The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any finance decisions. Appropriate independent advice should be obtained before making any such decision.

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