If you live in Chicago, Illinois and you are considering taking out a personal loan, there are a couple nuggets of advice that may help you in the process. Although a personal loan may seem like a smart decision to pay off student loan debt, go on a vacation, or pay off your car completely, they may cost you more in the long run. Let’s look at what you need to know to ensure you come out with the best personal loan from a lender.
Chicago Credit Score
Like buying a home or a new car, loan lenders will always look at your credit score. Therefore, it is crucial that you know exactly what you credit score is and whether your credit report is in good standing. With the average credit score in Illinois being 703, which is well above the national average of 687, there are many options for locals wanting to take out a personal loan.
Now, when you go to take out a personal loan, the lender may look at the following areas of your credit score, areas you need to ensure are in positive standing.
- Credit Score Overall
- Debt to Income Ratio
- Available Credit
- Unpaid Collections
- Outstanding Debts
3 Personal Loan Shopping Tips
1. Get Your Credit In Good Standing
If you know there are aspects of your credit score that need to be adjusted or fixed, the best thing to do before applying for a personal loan is get your credit in order. Whether it is pay off late payments, balance your debt to utilization ratio, or pay off past collections, always make sure your credit is in the best possible light.
2. Know Your Lender
With lenders pitching the best taglines to reel you in, it is important that you always read the fine print and get to know your lender. Shop around for reputable companies in Chicago, Illinois that work with people with your credit score. With that said, ask questions, build trust, and read reviews from past loan borrowers that have used that specific lenders service.
3. Know Your Length
The length of your loan is as equally important as the interest rate and the fees you will pay to secure the loan. The reason for this is because the more you extend the loan, the more interest rates you will pay, which can come out feeling more burdensome. Deciding on a loan length that you know you can stick to within a reasonable time frame is the best option.