Have You Chosen The Wrong Lender For Your Personal Loan?
Are you sure that you have selected an appropriate lender for your personal needs? Did you conduct the proper research before committing? Well, picking up a personal lender is not an easy task. The lender you choose will be a part of your life for months, maybe even years until you are done repaying your loan. You will have to depend on your lender as far as processing your payments and looking after any kind of customer service issues are concerned. In return, you will be shelling out hundreds and thousands of dollars. So, it’s obvious that you wouldn’t want to choose an inappropriate lender to serve your purpose. Go through the following signs that would indicate whether your personal loan lender is a good fit for you or not.
There Are a Lot Of Consumer Complaints Against Your Lender
Some lenders are quite adept at applying for payments, handling any customer issue, and managing loans. However, there are others who have created a lot of trouble in the past. No one would want to invite a headache while working with such a lender. In these cases, you need to be extra cautious and verify if the lender you are borrowing your money from, is involved in various problems in the past or not. The Consumer Complaint Database of the Consumer Financial Protection Bureau is the best place to find out all these details. Just type in your lender’s name and search. Another smart way to deal with it is to check the Better Business Bureau ratings of your lender. Aside from these, consumer reviews that are available online are also helpful to a great extent.
The Surprise Fees
Always compare the total costs that you have to incur from one loan to the other. Normally, you need to pay the origination fees. Along with that, you need to shell out the late fees and the prepayment penalties. It’s the responsibility of a lender to make the picture crystal clear. Many a time. A lender may ask for a higher fee. If you are eligible for a lower interest rate, that makes sense. You don’t need to take the services of a lender who doesn’t unveil the exact charges and intimate you with the details when you are availing a loan or going through the payoff procedure. If your lender charges a surprise fee suddenly in the middle of your repayment process, you seriously need to step back. Realize that it’s high time you look out for someone who will be transparent about the total pricing policy.
Your Lender Hasn’t Fleshed Out The Loan Terms
Aside from fees, there are a few other things that you must be concerned about. Get to know about the interest rate and the repayment terms. That’s imperative as you would have to calculate the entire cost. As discussed before, mentioning all the terms clearly at the time of your application is the primary responsibility of your lender. If that’s done, you can choose from various loan products. Another thing that you should focus on is whether your loan is a variable rate loan or a fixed rate loan. In cases of variable rate loans, the rate of interest during the period of repayment can soar. If there is an increase in your interest rate, the cost of the total loan will automatically go up.
The Lender Is Taking Too Much Time To Process The Loan Application
People look for lenders when they have a financial necessity. Reasons for borrowing money can be many. You might need to pay off your high-interest debt or you might aim for a big purchase. At the time of borrowing, you surely wouldn’t want to wait for eternity for your lender to process your application. How long does it take to check the paperwork, approve the application, and subsequently, release the funds? There are plenty of loan lenders out there in the market who can complete the entire process and fund your loan within a week. If your lender is taking too much time, look out for a new one.
These are some tell-tale signs that you might need to consult a second personal loan provider. Whenever you find yourself trapped in the above scenarios, without much ado, look out for a new lender.
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