Understanding Your Loan

March 21, 2019

Financial

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Taking out a loan can be an excellent way to get out of a financial emergency and extend buying power. However, it’s important to understand what is involved before signing the paperwork. Otherwise, borrowers will not find possible hidden fees or ballooning interest rates that can make the loan much more expensive than anticipated. To ensure that the right decision is made, ask questions and make sure that the following things are understood.

How Much is Needed?

When taking out a loan, only borrow the amount that is truly needed. As tempting as it may be to add a little cushion. Remember, borrowers pay interest on each dollar, so taking an extra $100 for an additional purchase will be much more expensive over time. So, calculate exactly what is needed before applying for a loan, then stick with that.

Are There Additional Fees?

While interest is a given, some lenders also charge an application or loan origination fee that can increase the cost of the loan. A loan with fees added to the balance can still be a great deal, but it’s important to understand how much will truly be paid in the long run.

What is the Interest Rate?

Many times, a borrower will focus on the monthly payment and making it fit into their budget. There are other factors that determine the affordability of the loan. A difference of something as small as one or two percentage points can equal paying hundreds of additional dollars in interest over the course of the loan. Take the time to review the details and compare the total cost of borrowing as well as the monthly payment amount.

How Long Does It Take to Obtain Funds?

Often, funds are needed for an emergency situation. This is where prompt service and fast turnaround time is critical. The associates at Blue Trust Loans are available 24/7 to answer any questions that may come up. Also, the application process can be handled online anytime. Once approved, the funds can be deposited in an active checking account as soon as the next business day.

To get additional information and apply for a loan for up to $2,000, visit www.bluetrustloans.com. They have a variety of products that are sure to fit your needs. See if an installment loan might be a right fit. They make the process seamless.