There are some things in life that come with a huge price tag. Car problems, health scares, and house repairs are only a few of the things that can ruin your carefully constructed budget. It’s a reality of the 21st century that you’re going to have to borrow money occasionally as the average household debt is on the rise. The only problem is, when it comes to loans, you’re out of your depth. Rates, fees, and conditions are things you know nothing about and your lack of experience turns the simple act of borrowing money into a daunting task.
The sheer amount of information available to you is part of the problem. The Internet makes for a great resource, but often you’ll find contradictory information populates the same search result. How can you weed through the genuine facts from fanciful fiction?
Your problem is your field of focus. You can’t search all of Google and expect to find a lender in your life time. You need to narrow your search. But first, you need to know what discerns a viable lending option from those companies that don’t have your best interest in mind. This is where a company’s credibility becomes important. Only those lenders that have received official licensing to operate within your home state should make it onto your list. Discard any companies that can’t offer this accreditation, as the absence of a license means they’re issuing loans outside of the law. A license ensures all of the rules and regulations as determined by your state are followed, reducing the risk of usury and increasing the accountability of their loans.
A lender’s credibility can also be confirmed by the company that they keep. Check out their website to find out what organizations they have memberships with. If you see communities like the Community Financial Service Association of America (CFSA) and the Online Lender’s Alliance (OLA), then you’ll know that the lender you’re researching is interested in creating and maintaining responsible and reasonable lending opportunities in your state.
Responsibility is next up on your checklist. The last thing you want to sign up for is a loan that you can’t handle. Though there will be companies that offer you loans far bigger than you’ll ever need, resist the urge to accept them. A large loan outside of your means will become a new debt that replaces your car repairs and medical bills – except with more expensive interest rates and harsher fees.
Vet those state licensed lenders for those that offer short-term, small dollar loans. By keeping loans between $200 and $1,000, your borrowed amount is easier to pay back – meaning you can pay back your loan on time and avoid any late fees. Many reputable lenders will also offer flexible repayment plans to help you make your payments on time, since not everyone has the ability to repay their loan in one lump sum. To learn more about your options, discover MoneyKey short term lending solutions. They include single pay, installment, and line of credit loans depending on your financial situation and current needs. If you count yourself among those who would struggle to repay a loan in one go, then a flex-pay installment loan allows you to make scheduled payments over the course of a couple pay periods.
With these things in mind, you can get a responsible, healthy loan that’s within your financial capabilities. You won’t be exchanging the debt of your bills for the debt of a loan, as you’ll find a flexible repayment plan that fits your situation. So arm yourself with this knowledge and complete careful research to find a lender you can trust.