A long term loan can be a way to get a lump sum of money when you need it, for a variety of different reasons. There are all kinds of different loan products available on the market from banks and other lenders. If you need the loan for a specific purpose, for instance for starting a business or buying a car, you may also be able to find a long-term loan designed specifically for your needs.
As with any kind of loan application, applying for a long-term loan can leave footprints on your credit record. It is therefore important to do your research before you actually apply for any credit products. Here are three things to check before applying for any long-term loan.
Is the Lender Regulated and Legitimate?
One of the most important things to check is that the lender that you are planning to apply to is fully regulated and above board. There are all kinds of horror stories about people who have ended up owing ridiculous amounts of money or being harassed for repayment by loan shark companies, because they didn’t do their due diligence before arranging the loans.
Are There Any Hidden Fees Attached?
When you are sure that you are only looking at products from regulated and credible financial organisations, it is also important to look at any additional fees that are charged when you take out the loan. With some companies you may have to pay extra to receive the funds from your loan on the same day, for example. Additionally, some brokers who will help you find a loan charge their own commissions for arranging it for you. This is not the case with all brokers, and in some cases you may even prefer to use a brokering service and pay their fees, however it is important to know about any fees that you will incur while you’re working out the cost of the loan prior to application.
Do You Need to Be a Homeowner or Have Good Credit to Be Accepted?
There are long term loans available for people in all different situations. However, you really only want to apply for a loan that you are likely to be accepted for to avoid any negative effects on your credit rating. You should therefore check before applying that you meet the criteria usually applied to people who are given the loan. Some long-term loans are more usually given to people who own their own homes, or already have a good credit rating. There are loans available for people with bad credit, however, and if you already know that your credit rating isn’t brilliant then you should be looking specifically for these kinds of loans rather than applying for ones you are likely to be turned down for.
Like anything else, shopping for a new loan works best when you have done your research and shopped around a little before committing to one product. Check out different loan providers online and look at consumer reviews from other customers to identify the best loans for you.