Personal loans

  1. Make sure a personal loan offers you the best deal – Consumers use personal loans for different purposes. For instance, you could use them to consolidate your credit card debt, for home improvement purposes, to invest in your business or simply to take a vacation.
  2. Choose the right lender – Financing sources that offer personal loans include banks, credit unions and online lenders. Each of these offers a range of interest rates, and their terms vary. That’s why you should shop around and find a lender whose loan best fits your needs.
  3. Read the fine print – be sure to ask for a full disclosure of all the loan terms and read the fine print. There are differences in the terms offered by different lenders. See if the monthly payment and repayment terms work for you. There also could be fees for late payments. The lender is looking to generate a steady stream of interest payments from you over the term of the loan, so there could also be a prepayment fee, or penalty for paying off your loan early.
  4. Watch out for origination fees – While some lenders seem to offer lower interest rates, you might find that they also tack on an origination fee that effectively hikes your interest rate. Thus, you could be better off with a lender that offers a higher rate than others but doesn’t add on any origination fees.Don’t take on more than you can afford – Before you apply for a personal loan, gauge your financial situation and how much you can comfortably take on. Some lenders will look to ply you with more than you can handle. That means you might end up biting off more than you can chew and fall into a debt trap.
  5. Fixed rate or variable rate? Should you opt for a variable or fixed rate on your personal loan? Typically, you will start off with a lower rate on a variable-rate loan, but you also will be taking on interest rate risk. As interest rates rise, your variable rate also will rise, so your monthly payments will be higher. With a fixed rate, your payments will remain the same for the term of the loan regardless of interest rate movements.

ZonaCredit offers you advice, selection of the best offer and quick and easy application procedure at a selected bank.


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