8 Things to Remember Before Taking Any Loan
5. Credit score
The first thing a bank would look for is your credit score. If your credit score is good, your loan would get sanctioned in minutes. It depends on your past financial record. But, if your credit score is not good or it has a negative marking, then banks will offer you a higher interest rate. So, it is important to maintain a good score to get the best deal on the loan.
6. Loan charges
When you avail a loan, check out for all the hidden charges. Like, some banks or financial institutions will charge processing fees or administrative charges. So, request the loan lender to lay off the charges if you have a good score. Also, look out for pre penalty charge or defaulting charge if you are not able to pay the monthly installment on time.
7. Don’t create a debt
If you already have two to three loans to pay, then it is advisable that you wait to get a loan. Repayment of so many loans not only affects your credit score but also your monthly budget. Don’t create a loan debt like situation.
8. Check for online loans
Everyone wants to go the digital way today. But, you need to be extra cautious while applying to online loans. Check the company and read the privacy policy before applying for an online loan.
