Find the Best Personal Loan for Your Needs
The Credit Score Principle
One of the most important principles of opening a line of credit is your credit score. What many people do not realize is that their credit score holds significant power over the quality of an individual loan, especially personal loans. Your credit score speaks volumes to lenders and how trustworthy you are. If you have a poor credit score, you can guarantee that you will be offered personal loans with lower limits, higher interest rates, and higher charges or fees.
Considering that the average credit score in Kentucky is around 688, according to Credit Card Local, there is much that locals in Louisville can do to improve their credit score.
It’s essential that, if you want to secure the best personal loan, you take the time to improve your credit score. Today, there are many different things people can do to improve their credit score. From disputing errors on a credit report, making several monthly payments, to even balancing one’s credit utilization, credit holders have the power to make a difference on their credit score, regardless of how much debt they have accrued.
Finding a Great Personal Loan in Louisville
One mistake that many credit holders make when wanting to open a personal loan is opening the first loan that they find. This is a grave mistake that can leave you vulnerable to interest rates and fees, and ultimately more debt. So, before you make any financial decision consider some of our tips on finding the best places for personal loans in Louisville.
- Improve Your Credit Score
As a borrower, it’s your responsibility to work on your credit score. Before you can get the best personal loans, you need to have a reputable credit score. In fact, if you take the time to improve your credit score, you will notice better results and ease during the loan application process.
- Do Your Research
The key to finding a great personal loan in Louisville starts with research. Look at different lenders in Louisville and see what their current offers are. Most lenders will share estimate costs and terms on their websites. From there, compare with other lenders and see what companies tend to offer the best loan deals. Moreover, take the time to look at what the experts and previous customers are saying.
- Avoid High Interest Rates
Our last tip to finding a great personal loan in Louisville is to avoid picking companies with high interest rates. Personal loans are meant and designed to be shorter loans. So, if you choose a loan with a higher interest rate, it will significantly increase the cost of the loan itself versus getting low interest loans, costing you more money out of pocket. It’s crucial to look at whether the loan is at an affixed interest rate or variable. Companies that offer variable interests tend to start off with lower rates and slowly increase them over the length of the loan. Plug the numbers into a personal loans interest calculator to get a picture of what the payments will be before you commit.
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.