How do you select the best private lender? What parameters should you look for? How to understand terms and conditions? Follow these easy Loan Away steps.
Expand the scope of your search
The fact that your first search for a lender results in supposedly remarkable rates does not mean you should commit to that particular private lender. Make sure to get and compare as many quotes from as many lenders as it is possible.
Take your time to perform a diligent market research, so you are well informed and less likely to fall for the many cash grabs outfits disguised as private lenders.
Confirm the eligibility criteria
What are the requirements assigned by the private lender? Do they require you to provide a loan cosigner? Are there any other specific eligibility criteria including occupation, employment, or social status? You should ask these questions before selecting a private lender. Before approving a loan, most private lenders take into consideration the past credit history of the borrower represented by a credit score. Some lenders might pay special attention to additional details like your debt, income ratio, and fillings for recent bankruptcies if available. Having a low credit does not necessarily disqualify you from accessing the loan. On the other hand, good credit histories and scores set you up for better interest rates and loan repayment schedules
The best private lender is the one with the best terms and conditions
Different private lenders loans have various terms and conditions. It is up to you figure out which option provides the best overall value. One major value-determining factor is the interest rate. With private lenders, rates could be fixed or variable. Variable interest rates are usually lower than fixed rates. Many private lenders take an extra step to offer discounting systems or benefits as an incentive to attract more customers. Discounts provided could include principal reductions, rebates, unconditional interest rates, loan fee rebates, and the customary 0.50% rate subsidy for clients who authorize automatic monthly repayment withdrawals from their bank accounts.
Another thing to take note of is the loan repayment duration. The best option is to look for a private lender that provides longer loan terms at a reasonable monthly repayment premium than those who spread out repayment for unnecessarily long periods.
Access the customer service
When you finally commit to a private lender, the customer service portal connects you to the lender. It is very important to remember that you are entering a long-term contractual relationship; that is why you should look for reviews of companies’ customer service. A good private lender has a customer service department that is available at least 12 hours a day 5 days a week. A difficult application and hard to set up repayment schedule processes are bad signs of a bureaucratic private lender. The ideal lender has a simple application process that is available online and there is a good Frequently Asked Questions section on the website.