What to Consider Before Applying for a Loan

Published on June 23rd, 2020

There are many things to consider when applying for any kind of loan. However, there are five important items you should pay extra attention to that can put you on the road to borrowing success.

1. Your Credit Report / Score

Your credit report and credit score tells a lender how risky it is to lend you money based on your payment history, the amount you owe vs. your credit limit, length of credit history, credit mix, and new debt. The higher your credit score, the lower your interest rate will be and the better your approval chances are.

Before you begin looking for a personal loan lender, you should get a copy of your credit report to check and correct any errors. This will also give you the advantage of knowing what your score is, so you won’t be taken off guard when you speak with a lender. You’re entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. If you spread out your inquiries every four months, you can review your report three times each year. You can order your report online from annualcreditreport.com.

2. Review Alternatives

Depending on how quickly you need the cash, using a line of credit may be a better alternative if you already have a Home Equity Line of Credit Loan or a credit card. You can draw from your line of credit much quicker than applying for and getting a Personal Loan.

3. Beware of Scams

Remember the adage – if it seems too good to be true, it probably is. When money is involved, unfortunately, there is always the potential for fraud. Always stick to trusted lenders, like Leyden Credit Union. We’ve been offering loans near River Grove since 1955 and have an established reputation as a trusted lender with competitive rates.

4. Rates and Fees

There is always a cost to borrowing money. Make sure that you shop around for the best rates as well as the repayment terms you are looking for. If you are considering using a payday lender, you need to be aware of the exorbitant fees that they charge.

5. Review the Need

While it’s the last thing on the list, it’s really the most important. Are you looking to borrow money for something you need or something you want? If it can wait, you will be better off starting a savings plan instead of incurring additional debt. Remember, every borrowing decision has the potential to affect your financial future.

Loans Near River Grove

We offer several different types of loans near River Grove. Visit the Loans section of our site to learn more. Are you curious about the loans Leyden Credit Union offers its members? Don’t hesitate to contact us with any questions you have.

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