Whether you are looking to finance your next family vacation or consolidate your credit card debt, a personal loan may be your best financial option and tool. These loans are designed to be short-term loans with average interest rates, making them easy to open and pay-off. Today, in Sacramento, California, the average credit score is around 701, which is slightly above the national average. While this is a decent credit score, it’s important that residents of this city are aware of the different factors that can impact the personal loan. Here, we are going to discuss three of the most important factors to help pick the best personal loan lender and questions to ask a lender to ensure your best interest is at the forefront of the contract. Let’s dive in!

• Accreditations: if you are starting your research off from scratch, one of the first places to begin is by gauging a lending company’s accreditation. To do this, visit websites like the Better Business Bureau is see how they fare.
• Customer Reviews: in the digital age, more and more people are heading to the internet to share their experience about working with a specific company, whether positive or negative. The same is true for personal loan lenders and other financial institutions. Take the time to see what other customers are saying about opening a personal loan with that company.
• Quality of Website: The rule of thumb is that if a company is asking for personal information before providing any beneficial information, remove that company from your list. Cash loans lenders in Sacramento are in a very competitive market. As a result, they should be providing consumers with the pertinent information, including, interest rates, origination fees, loan terms, loan limits, and more.

Five Questions to ask a Personal Loan Lender

When opening a personal loan, it’s important that residents of Sacramento, California take the time to essentially evaluate the lender with interview-like questions. The truth is, this is the only proven way that you can gauge whether a company has your best interests at the forefront of their mind. To help you out, we have generated a list of five questions to get the ball rolling.

• Are your interest rates variable or fixed?
• Do you charge origination fees?
• If an individual is able to pay off their debt early, do you charge a fee?
• What is the absolute cost of a personal loan with your company?
• What makes your lending institution worth my consideration?

 

Are Payday and Title Loans the Same as Personal Loans?

No not really. A payday loan, or cash advance, is easier to get and has a shorter term(unless it’s a longer installment option) but higher fees and much higher interest than personal loans. The same is true for title loans with the addition of your car being used as collateral. Be very cautious with these types of loans.