Avoiding Personal Loan Pitfalls

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this.

Personal loans represent a versatile financing tool for a vast number of borrowers and their unique needs, and they now seem to be available from a myriad of sources; online lenders, banks, and credit unions each offer different flavors of personal loan solutions for well-qualified individuals.

Considering the Alternatives

Personal loans are not the end of the road when it comes to affordable financing. Alternatives such as credit cards can offer more flexibility in repayment and, initially, a lower cost of borrowing. For example, the interest rate on a personal loan for someone with excellent credit can be as low as 6%; however, for those with less than ideal credit history, personal loan interest rates can soar as high as 36%.

Doing your Research

With the number of lenders offering personal loans rising, you as the consumer benefit from increased competition. However, not all lenders are created equal. A common mistake among borrowers is failing to do the necessary research on the lender of choice. It is important to get detailed information for each lender you consider, including:

• Financial stability of the company
• How the loan is funded (crowdsourcing or internally)
• Customer service reputation
• Privacy policy

Looks like really useful info, eh? Just click the link here to find out more from the horse’s mouth! If you’d like to share perspectives or discuss how it relates to your business, call me on (07) 3465-9259 or email me at [email protected].

Cheers!

Craig