The 4 Questions to Ask Before Applying for a Personal Loan

Personal loans. You probably know the name, but you may not know the ins and outs of this long-used financial tool. If that’s you, we’ve rounded up the most important questions to ask before you make a move.

1. Do you have high-interest credit card debt?

If the plastic in your wallet has created stress in your life, a personal loan could be a wise financial move. For the 40% of Americans with consumer debt, the fixed rates and flexible terms of a personal loan could save hundreds of dollars per month by ending the exorbitant interest rates and transferring the balance to a single personal loan. Compare your rates with those available from reputable lenders to determine if a personal loan is right for your situation.

2. Are major life expenses coming up?

Perhaps you don’t have credit card debt, but you know you could face it in the near future. If medical bills, adoption fees, wedding expenses, home renovation, or other expenses are keeping you awake at night, a personal loan could provide the funds you need at a lower interest rate than credit cards.

3. Can your credit score earn a no-collateral loan?

One of the major benefits to a personal loan is that it requires absolutely no collateral to secure. Your house, car, or boat? Not on the line. Instead, it’s based on your credit score. As such, you’ll need a decent credit score–fair or better–to qualify. See if your credit score qualifies at LendingTree.

4. What’s the absolute lowest rate available?

Personal loans are offered by respected lenders all around the country, at varying interest rates. The best way to get the best rates is to compare offers from lenders around the country. Don’t have time to flip through hundreds of phone books? We didn’t think so. Use a trusted financial comparison tool like LendingTree to compare rates from around the country with a single, simple application. You can even do it from your phone. Click here to start.

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