When there is an urgent need of some money, we are vulnerable to making mistakes. Many people sign up for short term loans in haste and fail to read the fine print. In some unfortunate cases, the borrowers end up repaying much higher than they had anticipated. It is not only the rate of interest that matters but all the clauses of repayment. While borrowers need a quick solution, the approach must be cautious and meticulous. There are just five quintessential clarifications you need while applying for short term loans to avoid getting into any unintended debt. Ensure you have these five clarifications and you would not have any rude surprises in the offing.
- You would either choose lenders who would offer their loans directly or you would choose brokers like Cash Kitty. It is better to opt for facilitators like Cash Kitty as you would get many offers from one source. You may get a dozen loan offers from a dozen lenders. All these offers will be directly from the lenders but you would be filing only one application. Imagine the time and effort needed to file an application separately with a dozen lenders and dealing with each of them individually. Do check with the broker how many offers you can expect. Let your preferences and needs known to get relevant offers.
- Always clarify the loan amounts that you can apply for. Some lenders are ambiguous with the range of loan amount. Most lenders will make it very clear that they don’t offer any less than a certain amount and any more than a certain sum. You must know this range so you don’t waste your time applying with a lender. The good thing about using Cash Kitty is you don’t need to worry about the range of loan amount of a particular lender. Your application will be routed to only those lenders that would be willing to grant the loan amount you need.
- Check the rates of interest of every lender. There will be representative rates, indicating the range that the lenders are offering right now. Do not generalise and do not overlook the specific rates of every lender. The loan offers will have these rates mentioned explicitly. Compare the loan amounts and the rates of interest to choose the best.
- Clarify the turnaround time at the very outset. If you need a loan in a day, then it is futile to deal with a lender that would take a minimum of two days. Brokers like Cash Kitty have many lenders, some would approve in a day, some will take up to a week and a few may offer short term loans in an hour or two. You can choose to apply for short term loans from lenders that can cater to the turnaround time you need.
- Finally, check the charges, fees or financial obligations you would have towards the broker and/or lender. Cash Kitty doesn’t charge any fees or commissions from the borrowers. But there are some brokers that do. Stay away from such brokers that would take a chunk of your loan amount as their fees.