Editor’s note: This is a guest article by Sachin
THERE ARE a variety of companies out there offering you more ways that one to get into debt to them. There are a lot of offers and some of them seem too good to be true. Whether they are called pay-day loans or fast loans, you want to be absolutely certain that you have the funds to repay the amount of money on time. Here are some points to consider, look for, and be on the look out for when getting your loan.
• Credit rating. With small amounts of money there might not need to be any reason to dig into your credit history. For those of us who have fallen on the wayside, it can be hard to get ahead even if you have paid a debt off. Look for reputable companies that are not interested in your credit history for small amounts of money where possible.
• Fine print. When I think of fine print, and especially when I see fine print, I think of the same thing. Why did they write this part of the contract in small writing? The answer is simple. Because they don’t want you to read it. For those of you who have poor eye sight this can be particularly annoying. Why fine print has not been made illegal, it still amazes not just me. Modern day contracts should be written in plain and easy to understand language. If there is fine print, consider going to another company.
• Repayment options. Make sure that you can have the option to pay back the cash loans faster if you want to. As a matter of fact this should be a pre-requisite of any loan that you are ever involved in. Look for even better borrowing terms that will reduce the amount of interest that you will pay. This way you can plan ahead and know the last possible time and date for repayment.
• Reward programs. Does the company or institution clearly state what kind of reward they will offer you for being a long term customer? Are you aware of exactly what benefits you will be getting as you pay one or more loans back promptly? The problem in Australia particularly exists because of the old-fashioned nature of a dominant and uncompetitive banking market. This is why we have seen an explosion of alternative lending facilities – and about time. They should be telling you why they want your business and what they are prepared to do for it now and in the future. Lending is just like any other business — you are the customer.
• Co-operative nature. Just like any other business, a lending institution should be providing you with a positive experience, particularly when you are in a time of need. The days where the bank manager thought he was a Roman Emperor and we are all just peasants is long gone. Expect your loan terms, tools to deal and manage it, and the staff that you deal with to be friendly, modern and service orientated – this is actually most of what they do.
It is important to understand your position as a consumer, and understand the modern and easy to use terms that many companies, institutions and organizations are already providing. The world is getting smaller and technology should be making things simpler and more cost effective for you as a consumer. Always shop around and don’t take second best.
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