If you live in Cleveland, Ohio, a personal loan may be your best financial tool to help provide the capital needed to pay off medical bills, plan your next vacation, or consolidate your debt. In fact, one of the most popular uses of a personal loan is to avoid consolidation companies and consolidate one’s debt by themselves. So, regardless of your need, today, we are going to cover the factors to consider when picking a personal loan and the importance of improving your credit score first.
Improve Credit Score First!
Before we cover specifics on applying for a personal loan, we figured we would first cover the importance of improving your credit score first. In the state of Ohio, the average credit score is around 699, which is hovering around the national average.
While it’s great that the state average is on par with the national average, those in Cleveland still need to work on improving their credit score first. Reason being, an average credit score will only result in low-to-average interest rates. What many people do not realize is that only by improving your credit score can you land a great interest rate, effectively saving them more money and stress.
To begin improving your credit score, start by receiving a free copy of your credit report from the credit bureau. Analyze your current credit and where you can begin making improvements. See if you can make any disputes on your report, resulting in quick jumps in credit. Otherwise, start developing a financial habit and game plan to improve your credit score BEFORE applying for a personal loan. Otherwise, you will find yourself in more debt.
How to Pick the Best Personal Loans
Once you have established a better than average credit score, that is the time to begin researching and learning how to pick the best personal loans. On your journey to pick the best personal loans, here are a few factors to keep at the forefront of your decision:
- Interest Rates: A lender’s personal loan interest rate should be one of the first things that you take into consideration. We highly advise to compare this number to the national average, and what other companies are offering.
- Loan Limits: It should be anticipated that every lender will offer borrowers different loan limits. Typically, these limits should be found on their website. If you are looking for a company with a higher loan limit, be sure to indicate this during your research.
- Information on Website: If you are looking for a high quality personal loan lender, look for high quality information on their website. A lender that is not sharing information openly about their interest rates, fees, or even terms, is not worth your consideration.
Reputation: As always, the best way to gauge whether a lender is worth your consideration is by their reputation. Take the time to look at individual customer reviews and even check the company’s accreditation through the Better Business Bureau.