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Loan
Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.
Excerpt of 'Loan.' Wikipedia, The Free Encyclopedia. 7 Mar 2006, 18:19 UTC. 12 Mar 2006, 21:22 http://en.wikipedia.org/w/index.php?title=Loan&oldid=42673604
Read our Loan Tip 
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Print this page
How to choose the "Right Loan" for all your needs!
You need money – and maybe that’s all
you know for sure right now. You may need to buy a car, renovate your
home, consolidate your debt, pay a business expense, or fund your
tuition to a college.
It doesn’t matter what your needs are
– there are certain guidelines that can help you choose the loan that’s
best for you:
- Never sign up with the first
lender just because they were the
quickest to get back to you!
It’s important to shop around for the best
deal. Don’t believe any lender who tells you that everyone will have
the same deal – they won’t.
- Don’t just pay attention to the
big picture – like annual percentage rates!
You want to ask what your monthly payments will be –
including
the amount of interest you’ll be paying each month. You also want to
know how much interest you’ll be paying over the length of loan in
full.
- Before signing anything – make sure
you read the small print!
What happens if you miss a single
payment or are a couple of days late? You
may find your possessions being repossessed or a substantial late
payment being tacked onto your bill if you’re not careful.
- Don’t take out a loan for more
than you can handle!
You don’t want to
get in over your head and add stress to your life. Depending on what
kind of loan you need, use our online calculator
that will do all of the number crunching for you. Just because someone
offers you $100,000 doesn’t mean your income will allow you to make
payments on such a loan.
- If your credit isn’t up to par,
be careful
about making blind applications to dozens of lending companies!
Every
time you apply for a loan, it’s noted on your credit history. If you’re
turned down several times, it will taint your credit and make it harder
for you to get the loan that you need.
Some lenders will help you determine which type of loan is best for
you. You may need to disclose what the loan is for. If you take out a
debt consolidation loan, then the lender will usually pay the companies
you owe directly and you then sometimes have to close your accounts to
ensure you don’t rack up further debt in addition to your new loan.
Make sure you look at all of the pros and cons of various loan types
that could work for you. You may find that a home equity loan is your
best bet – or a personal loan would work better. You’re not always
pigeon holed into one type of loan for your money needs. |
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