Sometimes we all get a little tight for cash and we consider taking out a personal loan but how can we distinguish a good personal loan from a bad one? Well, we have a few tips for you that will help you decide whether or not the loan you are thinking about getting is a good personal loan. Feel free to refer back to this list any time you aren’t sure and share it with anyone else that may be contemplating a personal loan of any kind. Now, are you ready to get started? If so, go ahead and scroll down the page. We can’t wait to help!

Interest

The first thing that you should look at when getting any personal loan in order to decide whether or not it is a good personal loan is the interest rate. A lot of finance companies will charge you around 30% interest which, in our opinion, is far too high. Going to a bank or a credit union may land you a loan with as little as 4 or 5% interest so try that instead.

Terms

Next, you’ll want to look at the terms of the loan. How long do you have to pay it back? How much is your monthly payment? Can you afford to make this payment for the period of time that you need to? These are all questions that you should ask yourself and research when getting a personal loan. From there, it’s up to you decide whether or not it is a good personal loan. Also, don’t be afraid to ask your loan representative any questions you want.

Ask A Friend

If you live in a small area, odds are, you can ask a friend or two about the company that you plan on dealing with. Find out if they’ve ever gotten a loan through this particular company and what their experience dealing with them was like. If it was a bad one, you may want to move on and find something else. However, if they have nothing but good things to say then you may be fine moving forward. Either way, ask a few friends!

Make A Decision

Once you do all of this, it’s time to make a decision. Is this a good personal loan? Is it a bad one? Is the interest rate too high? Are the payments perfect? Do you have to pay on it for too long? Once you’ve brainstormed for a while and asked some of your friends for advice, you should be ready to make a decision. Just make sure you don’t rush your final choice.

And if you do all of this, you should be able to either find a good personal loan company or at least eliminate the bad ones. We’d hate to see you be victimized by a loan shark but it does happen. Play it safe, don’t rush into any decisions, and you should get a good personal loan. Again, if you’re “iffy” about it, feel free to refer back to this list for good advice.