There are going to be certain times in everyone’s life where they need to get a loan, whether it be a death in the family or a car breaking down at the worst time. Getting a loan is like any other financial process such as getting a mortgage or a car loan, depending on the type of loan that you are seeking which in this case is a personal loan. Now it does depend on what time of the year it is, whether or not you will get a better deal or not. Certain lenders offer special deals around different parts of the year, and it also depends on where the economy is going at the current time. If there is a recession you probably will not get a very good rate on a loan, but if the economy is on the upturn then loan companies will be throwing all kinds of deals out to qualified customers.
The Credit Score is Very Important:
There is never a right time to apply for a loan until your credit score is adequate. You do not want to apply for any type of a loan if your credit score is considered bad, for a number of reasons. First off, if you are trying to raise your score you do not want to apply for any type of credit, because when the companies run a credit report they do what is called a hard inquiry. Every time your credit score is ran it dings the score, thus lowering the total credit score. Another thing that you want to avoid is applying for too many loans at once, because this sends a bag message to potential lenders that you might be in financial trouble and or unable to afford your monthly expenses.
Comparison Shopping is Key:
The right time to get a loan is when the right deal is in front of you, don’t just settle for the first lender that will approve you. Put some effort into your loan search, there are many different companies that offer many different prices. Utilize the different online comparison engines that are available, and try to get the best rate for your loan. You can also refine your search by monthly payment amount as well, never get in over your head with a monthly payment that you cannot afford. After all the whole point of a loan is to get out of debt and relieve stress on yourself, thus there is no point in getting in over your head with an exceptionally high monthly payment.
You also want to make sure that you pick a reputable company to get a loan from, don’t use an unknown company that doesn’t really have a good track record. Always go online and see what the actual customer reviews are saying about the company, because if there are a lot of bad reviews then you probably don’t want to trust that company with your business. There are a lot of shady loan companies out there, some of which are not even based in the USA, and they are known for not only charging high interest rates but also reporting false information to your credit report. It is mistakes like this that many lower end companies make, that will because you more heart ache in the long run.
The right time to get a loan is when you know that you can afford it, many people will go and apply for loans knowing that they cannot afford the monthly payment. If the loan amount is small, the company will generally want it paid back within the year. So, the dreams of having a very low payment are generally false. Research is the key to getting the right loan, and remember that the winter time is generally the best time to apply for any type of a loan because the companies have to make their sales quotas for the end of the year period.
Don’t get intimidated if you don’t get approved, every company has different requirements, and so while one might deny you another company will approve you for the same loan. Also make sure to have all of your ducks in a row, most companies will need pay stubs and other proofs faxed or emailed to them prior to you ever receiving any type of payment. Overall it can seem like a daunting and stressful experience, but in the long run you will be greatly satisfied if you take this steps to getting a loan no matter what the best time is.