One of the biggest financial decisions anyone can make involves choosing the right personal loan lender. After all, this is a person who will be communicating with you for the duration of your loan repayment. The lender will be responsible for both customer service issues as well as payment processing. Interest will be paid to the lender in terms of hundreds or all the way to the thousands. That applies to personal loans online or offline.
The last thing you want is to have the wrong loan, even if you’re just looking into small personal loans. Hand-in-hand with that is to make sure that you’re not with the wrong lender. It’s important to compare and contrast all possible lenders early on. Do research before deciding on your ideal loan servicer partner. At the same time, keep an eye out for possible red flags that connote an ill-fitting loan lender.
Here are some signs that the personal loan lender you picked is not the right one.
The lender’s processing of your loan is taking a long time
When people end up needing to take out a loan, it’s usually because they have an urgent financial need. You could be trying to consolidate high-interest debt, or you have a major purchase to make, like a car. Waiting for weeks and months for processing can defeat the purpose of taking a loan out. If your need for funds is rather urgent, but the processing is slow, you should find a loan somewhere else.
There are hidden fees or surprise charges
From the very beginning, lenders need to be honest about their fees. It will allow you to make a fully informed decision as you compare one loan to another. Look out for the late fees, prepayment penalties, and origination fees. In certain situations, taking on a lender with a higher fee will actually make sense. A good example of that is when the overall interest rate is lower compared to other loans.
Do not borrow from a lender who is unable to give you exact figures when it comes to fees you’ll be charged. When you move forward in applying for a loan and find hidden charges in the fine print that hadn’t been mentioned before, it’s best to stop. You are far better off finding a lender whose pricing policy is both transparent and upfront.
There have been multiple consumer complaints against the loan lender
A number of personal lenders have a good grip when it comes to applying payments, managing loans, and most of all, handling customer issues. Unfortunately, there are others who are rather problematic in terms of support and service for their customers.
The last thing you want while paying your loan back is dealing with a stressful lender. Make sure that whoever you’re borrowing from has a history that isn’t fully problematic. Thankfully, the Consumer Financial Protection Bureau has a rather comprehensive Consumer Complaint Database. Look for your lender on there using his or her name and peruse the results. Of course, you should also look into the Better Business Bureau and what your lender’s rating is on there.
Taking out a loan is a major step, which people usually just take when things are dire. However, some people end up taking the wrong loan or worse, picking the wrong lender. Avoid lenders who have multiple consumer complaints against them, surprise charges, or take a long time to process loans.
Looking for reliable assistance when it comes to getting, personal loans online in Nashville, TN? Contact Mid-Town Finance today! We do not make payday or title pawn loans, and there are no hidden fees.