Tag Archives: Avoid Financial Traps

Smarter Borrowing: Personal Loan Checklist to Avoid Financial Traps

Personal LoanTaking out a new loan can be the smartest move or the most dangerous financial action you can do.

If you have no prior knowledge of personal loans, the experience can be scary — but don’t fret just yet.

When in doubt, it’s good to trust in an AP CREDIT Licensed Moneylender, instead of other unsecured loaning firms. For your security, below is a list of information to help you understand the tricky business of personal loaning.

Don’t Bite More Than What You Can Chew

The most appealing thing about personal loans is the promises made by persistent loan agents. It may be a low-interest rate, a longer loan period or a tempting laidback repayment term. With this, you quickly become confident to borrow higher amounts that you wouldn’t normally have. If you suddenly can’t pay, this is where your debts will start to pile up.

Believe Only Half of Fix Rate Guarantees

Personal loans have fixed interest rates to give the borrower confidence. But, there is also such a thing as occasional variable rate loans that can increase the fixed value without your knowledge.

Learn the Basic Lingo

Standard annual percentage rates let you determine if you can make your ends meet. To avoid incurring any extra loan charges, know the different values involved in your repayment terms.

Keep an Eye Out for Friendly Loans

Though rare, friendly loans or loans that allow you to pay back your debt early is an excellent way to cut back on the loan interest rates. As soon as you recovered your investment, you can pay everything back with minimal losses.

Know the Exact Origination and Miscellaneous

Every loan transaction costs a firm something, and you’re going to pay that too along the way. To know the accurate value of what you’re trying to repay back, learn about the origination fees and miscellaneous fees.

There are no real savings when you talk about loaning as it will ultimately lead you to pay up in the end. No matter how handsome the offers are, keep in mind that everything promo or offers are meant to extract money from you. The only one who has your best interests is yourself.