The Role of Credit Scores
Are you aware of how powerful a credit score is? Depending on your credit score, it can dictate not only the quality of a loan or credit line but the interest rates, fees, and ultimately the life expectancy of the loan. In fact, if you open a 5-year loan for $10,000 at a 6% interest rate, you can anticipate, with on-time monthly minimum payments to pay nearly $1,600 extra in interest rates. In other words, your loan is not $10,000, it’s $11,600. The lower the credit score, the higher the interest rate will be.
Considering that the state of Arizona has an average credit score of 691, which is slightly lower than the national average according to the Equifax credit scoring system, the majority of residents that live in Tucson should take action on improving their credit score to above the national average before opening a personal loan.
Applying for a Personal Loan
Applying for a personal loan in Tucson, Arizona may feel overwhelming when you consider how many different personal loan lenders are located in the city, and the one’s that are online. With that in mind, it’s important to know how to weed through the bad and good ones. In efforts to help you out, we have a few tips to help you out when doing your research.
- Red Flag
When researching different personal loan lenders, it’s important that you take the time to analyze a company’s website. During this process, if a company is mentioning any forms of promises or guarantees, these are red flags, and the company should be removed from your list. Moreover, if a company does not offer enough valuable information on their website, this is another red-flag and you can skip over them. This is a competitive industry and companies should provide a wealth of information in order to secure you.
- Customer Reviews
While spending some quality time on a company’s website will be productive, studying customer reviews can shine such great insight as to what you can expect if you were to enroll with this company. In light of this, look at different review-based websites and see what previous customers are saying. Be keen on consistent comments, whether positive or negative. Typically, if you are noticing a trend or theme in the comments, it may hold significant truth. You must also be wary of biased or self-promoted reviews.
- Call the Company
The last tip that we have when picking or applying for a personal loan is to call the lending company. This is one action step that many consumers tend to disregard. Given the lower-than-average credit score in Tucson, a simply phone call to a lending company can offer multiple benefits to the residents. On one side of the token, it can help the consumer weed out companies that are unprofessional or rude. On the other side, it shows to lenders that you are dedicated to opening a personal loan with the company, regardless of your credit score. In this, they may be willing to work with you and negotiate rates.