Four Things to Consider Prior to Signing a Note for a Personal Loan

Installment loans may be the easiest way to get fast cash but there are some important things anyone who is considering one of these loans should think about before they sign a promissory note.

Explore All Options

There are several different ways to get money. Some are more expensive than others. Some take longer to get the money than others. Installment loan funds are typically available by the day after the loan is approved.

Cost of the Loan

Bank loans are typically the least expensive formal lending product. However, it can take a while to get an approval. Banks often need lots of documentation before they will underwrite a personal loan. Installment loans from companies like Blue Trust Loans are more expensive but they require a lot less documentation. Borrowers typically only need proof of their identity, address and income to qualify.

Repayment Period

Payday loans typically have the shortest term. In most cases, they need to be repaid out of the borrower’s next paycheck. When repaying this kind of loan causes financial hardship, a borrower might take out another payday loan to make ends meet. Over time, this can cause serious financial problems for a family. Installment loans, whether they are from a small lender or a bank, usually give a borrower up to six month to repay their balance.

Customer Service

Although borrowers may never need to contact the lender regarding the status of their loan, they should know there is someone to call if they need to talk to a live person. Customer service is very important when it comes to money and the best lenders have several ways a borrower can get in touch with them.

People who need cash quickly may not think they have time to research everything about loans. However, spending a little time learning about the options available today may help them save money and resolve their immediate financial problem without going into debt or causing financial hardship for their family. It’s important to use a reputable lender with a positive track record. Lenders like this care about their customers and would rather see them succeed than to get in financial trouble with a loan.