Personal Loans in Albuquerque, NM: Bad Credit Installment, Payday, Cash Advance & Title Alternatives

If you are looking for extra capital for a vacation or a loan to help consolidate your debt, a personal loan may be your best choice. Rather than hiring a debt consolidation company, a personal loan is something that you can manage and handle at your own expense. For those living in the Land of Enchantment, Albuquerque is full of personal loan lenders all willing to help you figure out your personal financial situation. With an average credit score of 683, which is slightly below the national average, this beautiful capital city boasts numerous opportunities in the personal loan field. However, it’s important to understand what to look out for, or you might find yourself in a loan for more than a decade.

Origination Fees

Origination fees are simply a charge that a lender will ask for when opening a loan. Typically, this is charged after the application has been approved and prior to the money being sent into your account. When opening a personal loan in Albuquerque, you should never have to pay an origination fee. In fact, it has been said by numerous financial experts that companies that charge this fee are most notably a scam artist.

High Interest Rates

Higher interest rates can be an incredibly scary and frightening cost. What many people do not realize is that high interest rates can actually debilitate an individual’s personal finances and extend the life and cost of a loan. In light of this, if a company is charging higher interest rates than the average, stay away. Try to find the lowest interest rate in accordance to your credit score.

Guarantees or Promises

The last thing to look out for when opening a personal loan is a company that mentions any form of promises or guarantees. These are simply marketing hooks of scam artists to get you to sign up. Know this: opening a personal loan is incredibly risky. Anyone who says otherwise is simply trying to get your money.

Questions to Ask a Personal Loan Lender

1. What are the requirements for a personal loan?
2. What are the estimated interest rates?
3. Are your interest rates variable or fixed?
4. What are your current charges and fees?
5. Do you have an origination fee?
6. What happens if an individual can’t pay their monthly payment?
7. Do you have a fee for paying a loan off earlier than anticipated?

 

Are Payday and Title Loans the Same as Personal Loans?

No not really. A payday loan, or cash advance, is easier to get and has a shorter term(unless it’s a longer installment option) but higher fees and much higher interest than personal loans. The same is true for title loans with the addition of your car being used as collateral. Be very cautious with these types of loans.