How To Comparison Shop For The Best Personal Loan

When you are in the market for a new car, do you buy the first one that you see at the first dealership you visit? If you are shopping for a big screen plasma TV, do you buy the first one you see at the first electronics outlet that you visit?

The correct answer to those questions is obviously “no”. When you are shopping for a car, even if you know the make and model of the car you want to buy, you shop amongst various dealerships, possibly even checking things off on an exhaustive checklist to make sure it has all the features that you want, then you spend countless hours haggling with the dealer to make sure you have the best possible price. When you shop for that big screen plasma TV, you look at the sizes, the brands, the warranties, the prices, the rebates, and choose the one that represents the best financial deal possible for you.

But it is very interesting to note that the majority of consumers do not put forth the same amount of effort or diligence when shopping for the best personal loan. What makes this even stranger is the aspect that the difference between two different personal loan programs could potentially add up to hundreds and even thousands of dollars over the term of the loan.

When you are looking for a personal loan, you have a lot more choices available to you than you probably even realize. Of course, you understand that you can get a personal loan from your local bank or credit union, and yes, they sometimes have a “sale” on personal loans with very aggressive rates. If your credit is less than stellar, or let’s be frank, if you have bad credit, you can usually get a personal loan from a finance company, although the interest rates are not going to be anything to write home about.

You may even have a well-off uncle or parents who will loan you the money you need at an excellent interest rate or perhaps no interest rate at all. If this option is available to you, it is probably worth pursuing for your economic benefit.

But one of the places few people check out is online personal loans. Perhaps there is a mystique about doing an online personal loan, with visions of shady characters in a 9th floor apartment answering the phone and looking online with old laptops. But nothing could be further from the truth. Many companies have ONLY online loan divisions, and many companies who provide loans as part of their core business are creating online divisions to handle the online inquiries.

Getting a loan online is certainly worth your time and effort to investigate and evaluate when you are doing your comparison shopping. Due to the very low overhead of an online loan company compared to their brick and mortar counterparts, they usually pass on those savings to you in the form of lower interest rates and perhaps even longer terms.

When you are comparing your personal loan options, be sure to look of course at the interest rate being charged. Make sure that you are comparing apples to apples, since the loan payment on a 36 month loan will be obviously higher than the loan amount on a 48 month loan. Also make sure that there is no pre-payment penalty or any penalty for paying off the loan early.

If you are willing to put the same amount of diligence into shopping for a personal loan that you do when shopping for other things, you can save a lot of money, which makes the time you invest into the process more than worthwhile.

Using the Web to Search For Online Personal Loans

One of the best aspects about searching for online personal loans over the Internet is the vast amount of options you have. There are literally thousands of lenders on the market that are in a position to help you get over your financial problem.

Many of the lenders of these loans today, make it very simple to get approved, without even leaving your home. This is done through online an application process, and can save you time and money in your search for the right loan. Shopping for these loans on the web not only saves you from having to physically apply with each lender you are interested in, it allows you to shop for the best rates available to you.

Safely Shopping Online For A loan

With the amount of identity theft and phishing sites that are present on the web today, it is little wonder why someone would be apprehensive shopping for online personal loans. It is important to remember that lenders are looking for your business this way, and they are not about to take risks with your personal information.

If a site is safe and secure, it will have a small symbol somewhere on the bottom of the web page. This symbol will look like a locked padlock and if it is not present, it may be best to avoid this site all together. Depending on your Internet browser, the symbol could also be a small gold key at the lower left or right of the lender’s page. Never freely give out your personal information online while applying for loans, unless you have confirmation that the site is indeed safe. Personal information can include your name, address, banking information, tax information, or employment status.

Loan Shopping Made Simple Online

With the seemingly endless list of lenders that can be found on the Internet, it is easy to understand how shopping for online personal loans can be so simple. By typing “loans” into your Internet browser or search bar, you will be confronted with an array of pages that pertain to what you are looking for. This will make it easy to not only shop for the best rates available, it will allow you the opportunity to browse through various lender’s terms and conditions as well.

Many lenders today offer potential clients a list of their services, and can help you determine exactly what you may need from them. With flexible plans and competitive rates, this is shopping made simple. The best part of this search is that you do not even have to leave the privacy of your own home to shop. Lenders now offer convenient online loan applications, many of which will take you no more than 10 minutes to fill out.

Generally when a lender of online personal loans receives an online application, they will review it immediately, and you should receive an answer within a very short period of time. Sometimes this timeframe can be as short as an hour, or take up to 24 hours at the latest. Once you have been approved for the loan, the lender will go further into detail about the terms and conditions that apply.

Find Out How To Get A Personal Loan With Bad Credit

If you have bad credit, don’t feel alone, as there are tens of thousands of people that have bad credit. The good news is that many loan companies are now starting to use the more personal approach instead of a totally mechanized approach to approving and declining loan applications. Many of these companies have realized that having bad credit does not mean that someone is a bad person, since bad credit can result from a wide variety of different causes, many of which may be completely out of the control of that person. Such reasons include large and unexpected medical bills, a job layoff, a messy divorce, or many other things which have no bearing on the intentions of the person to managing their finances.

Just because you have bad credit does not mean that you cannot get a personal loan. It may mean that the traditional sources of lending may not want to talk to you about your loan, such as banks or credit unions. But there are several steps involved in getting a bad credit personal loan.

First of all, just how bad is your credit, or do you just having a feeling that it is bad? Without knowing exactly how bad it is, you could be spinning your wheels in shopping for your best personal loan option, so your first step is to get copies of your credit reports from the three major credit bureaus and find out exactly how bad is bad. One of the things you may be surprised to find is that your credit is not as bad as you think, and that your credit report contains errors, which you have a legal right to have corrected. Once those errors are corrected, your definition of “bad” may go up a few levels. Our web site below contains links to give you more information on the details of how to do this.

Next, even if you still have “bad” credit, you can still get a personal loan, although you are going to need to look beyond your local banks and credit unions. Keep in mind that shopping for a loan follows pretty much the same process as shopping for a new car or shopping for a piece of furniture. In other words, it is a very competitive market, and the interest rates and loan terms you will encounter are going to vary widely, so it is clearly in your best interests to shop around.

With bad credit, the interest rate on your personal loan is probably going to be higher than it would be if you had excellent credit. This simply stands to reason, since the lender is going to view you as a higher risk, at least until you can prove to them with timely payments that you are dependable and a good credit risk.

Do not ignore the online personal loan quotes that are available. Online companies have a much lower overhead and frequently pass those savings on to their customers. They also have the ability to take a more personal approach to looking at why you have bad credit and approving personal loans that a bank or credit union might sneeze at.

Everyone has a need for a personal loan every now and then, and if you have bad credit, that does not mean you cannot get a personal loan. Do your research and you may find yourself pleasantly surprised at the results!