Deciding Which Loan is the Right Loan
Written by: John Mussi
If you're considering getting a loan, you might find yourself
facing a wide variety of loan options... some of which might not
be exactly right for your current needs. When you can't decide
which type of loan is right for you and which one is wrong, it's
important to take a little bit of time and consider all of your
In order to assist you with your considerations, here is some
basic information on how to weigh your various loan options and
choose the right loan that will best meet your current needs.
A Variety of Options
The first thing that you need to do when trying to choose the
right loan from a variety of loan options is to consider the
purpose of each type of loan. Some loans, such as home equity
loans or basic secured loans, can be used for a wide variety of
purposes... others, such as those intended for automotive
financing or debt consolidation, tend to have more specific uses.
By eliminating the loans that are quite obviously not suited for
your current needs, such as marking off debt consolidation loans
if you're looking to make a new purchase, then you're more
likely to narrow down the list of options to a few good choices
that you can then consider in more detail.
Weighing the Pros and Cons of Loans
Once you've narrowed down the possible loans to a few that may
fit your needs, it's time to weigh the individual advantages and
disadvantages of each type of loan. Consider the type of
collateral (if any) that may be needed, the usual amount of time
that is allowed for repayment, and any special fees or
additional costs that may be required.
By doing so, you should be able to narrow down your choices to
only a few options... these will be the ones that are most like
the type of loan that you need, and can then be compared to each
other to determine which will best suit your financial needs.
Shopping Around for Loans
You should take the time to visit a variety of different
lenders, requesting quotes for the types of loans that you are
considering. Remember to keep your lender options open, making
sure that you visit different types of lenders such as banks,
finance companies, lending offices, and even online lenders so
that you get the widest possible range of quotes.
After you've received several quotes for each type of loan that
you're considering, it's important to take a bit more time so as
to compare the various offers and determine which of the loans
is best for you and your needs.
Choosing the Loan that Fits Your Need
Carefully compare the various quotes that you've received,
taking note of any that require specific fees or additional
costs. Take the time to group them by interest rate and the
repayment terms that each offers, trying to notice whether any
specific loan type seems to offer lower interest rates or better
loan terms than some of the others.
You may find that the few loan types that you've narrowed your
options down to are functionally the same, and therefore offer
the same interest rates and loan terms... then again, you may
find one type of loan that seems to offer better terms and rates
than the others.
Once you've found the best loans of the bunch, submit your
application for the loan that best meets your needs and offers
you the best rates and terms.
Careful consideration might find the best deals that you
otherwise might have passed up.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the www.directonlineloans.
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