In Oakland, California, there are many different financial tools available for residents to finance their next vacation, wedding, or avoid having to hire a debt consolidation company. With over 400,000 residents as of 2017, you can imagine the opportunities that are available. In light of this, one of the best financial tools is a standard personal loan.
Today, the average credit score in Oakland, California is slightly above the national average at 701. In light of this, while this is higher than the national average, it’s important that residents are aware of the many different factors to consider in picking a personal loan and how to ensure that a lender has their best interest at heart. Otherwise, they might find themselves in a personal loan contract that does not suit their needs or interests.
Factors to Consider When Picking a Personal Loan
If you are certain that a personal loan is your best option, then it’s important to know what to look out for when researching personal loans and lenders. In light of this, we have generated a few of the most important factors to consider when picking a personal loan. These factors may cause you to do some added research; however, the added research could save you hours or months of stress with a company that you should have never enrolled with. Let’s take look at these three factors:
- Reviews and Accreditation: Since we live in the digital age, one of the best ways to learn about a company is to read what previous customers have experience. While it’s important to be careful with biased or self-promoted reviews, residents in Oakland can still learn a wealth about a company by their reviews. It may also prove worth checking in with the Better Business Bureau to review the lender’s accreditation.
- Information on Website: How is the company presenting their information to you? If they are not sharing all the information and require your name, address, and email, this company is not trustworthy. In such a competitive industry, a company should provide you with the upper hand first.
- Rates and Charges: One of the most pertinent factors to take into consideration when picking a personal loan is to review their interest rates and charges. Look to see if they charge entry fees, exit fees, or monthly maintenance charges. On top of this, figure out what their interest rates are and use all of this information to compare with other lenders on the market.
The Best Questions to Ask a Loan Lender
It’s important to realize that opening a personal loan is a significant personal finance decision that can be risky. As a result, it’s important that you, a borrower, take the time to evaluate each company by asking valuable questions. Now, in our opinion, there is no such thing as a silly question. During your research, if you have a question about a specific company or factor, be sure to write it down and include it to the following list:
- Why should I enroll in a personal loan with your institution?
- What is the true cost of the personal loan based on your company’s current offered interest rates?
- Are your interest rates variable or fixed?
- Do you charge any origination fees?
- If I want to pay off my loan early, is there a fee or charge?