When it comes to personal finances, a personal loan is a great financial tool to help individuals manage their debt or finance a significant event, like a wedding or vacation. In Wichita, Kansas, the largest city in the entire Sun Flower State, there are a plethora of options that are available residents. Before you are quick to apply or enroll with just any personal loan lender, it’s important that you understand the role of your credit and things to look out for when picking a loan lender.

Moreover, a great score, especially one above the national average will help residents secure a much better and stronger personal loan, especially if you are seeking a more expensive loan. On the other hand, if you have a credit score lower than the state’s average, or the national average for that matter, your options and offers will be significantly worse. Chances are, you will be offered less, in terms of quantity of the loan, higher interest rates, and higher fees. This is where personal loans become unfavorable options. It’s important that, if you are interested in opening a personal loan, you take the time to improve your credit score. This is the best way to ensure that you don’t get stuck in years of debt and interest rates. If you did not know, the credit bureau, by law, has to give each consumer a free copy of their credit report. You can start there and get a glimpse as to where you stand today.

Things to Look Out For

During your research process, you will notice that there are dozens upon dozens of different financial institutions and personal loan lenders in Wichita. In light of this, it’s important to know precisely what to look out for and when to eliminate a company from your list. Here are three things that, if a company falls into one of these categories, you can simply remove them continue your research:

• Guarantees or Promises – If a company mentions anything remotely close to a guarantee or promise, this is a marketing tactic typically used by scammers. It’s important to know the truth of personal loans; these are risky financial ventures that could leave borrowers in more debt.
• Lack of Information – A lending company that does not share all the information on their website is not worth your attention. In Wichita, there is so many different personal loan lenders, that only serious and dedicated companies that are willing to provide borrowers with valuable information should be considered.
• Origination Fees – This is a critical red flag. If a personal loan lender is requiring you to pay any upfront fees, immediately take them off your list; however, this tends to be rare.

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. These can include payday loans online same day options. Be very cautious with these types of loans.