Maricor Bunal
For many of us, a personal loan is a savior that helps us get over tough financial situations and emergencies. However, it’s also common for many borrowers to grab the closest loan offer just to get the quick cash they need to be used for their immediate needs. More often, loans made in haste end up incurring the borrower additional expenses on top of the set monthly interest rate. On worst cases, especially those opting for collateral loans, the property they’ve put up upon application gets foreclosed or repossessed by the lender. But you don’t have to undergo these tough situations. Just bear in mind the following common loan application traps and apply the solutions to prevent yourself from getting in deep debt due to your loan:
Not considering all the three necessary aspects of personal loan
Loan maturity, interest rate and penalty charges are the 3 important aspects of your loan. You need to choose a term that suits your needs, one that won’t compromise your monthly budget and payment schedules. It’s necessary to be realistic with what you can afford for your monthly dues, considering that you can incur penalty charges if you miss a payment.
Not doing your research and shopping around
Lack of research is a common pitfall for many borrowers. This means one is making a loan without sufficient knowledge and options. Borrowers can get help from us here at Loansolutions PH. We can pair you up with one of our partner lenders who can provide exactly what you need.
Not considering your monthly family budget
Getting a personal loan means acquiring an additional item to pay every month on top of your set family expenses. So prior to application, it’s important to determine exactly how much you need and how much you can set aside for payments each month. This will help you determine how long you’re going to pay for the loan and negotiate with the lender accordingly.
Not considering the whole price
Many borrowers fall into the trap of considering only the perks of a loan offer without much thought about the additional costs they may incur due to such perks. Car loans, for instance, usually include aftermarket add-ons the payment of which is imposed on top of the purchase price. But a wise buyer usually foregoes the add-ons, especially if he or she knows that there’s vendor somewhere else who sells such add-ons at a lower price.
Not asking questions
Lenders are more open to negotiations than you think if you only ask questions and negotiate. Before applying, know what you want from your loan, including the perks, terms, interest rate and talk to the lender the specific loan aspects you can forego or replace to get what you want. Don’t forget to read the fine print and ask about all the minute details that you think can affect your overall payment.
By avoiding these mistakes, you’ll surely be able to get the best personal loan deal. For more options, visit our site, loansolutions.ph, regularly. Use our 3-Step Online Application Form to explore your options and follow up your loan status via our Loan Status Checker.
