There are a lot of online lenders competing to offer personal loans with 5 year loan terms so you must do comparison. Personal loans with 5 year loan term usually offer a loan amount of up to $30,000. You can now sign up for the personal loans. Personal loans can be used for all kinds of purposes for example vacation, medical, or home improvement. Another benefit is that many online lenders will only take 24 hours to approve the loan and release the funds into your bank account.
To effectively perform comparison, you can compile a list of about 4 – 5 lenders by getting recommendations from friends and family members. You may have seen a bank or credit union with an attractive interest rate so you can also note down this bank name on the list you are compiling. You can also obtain recommendations from the real estate agent or online review sites that specifically review banks. During comparison, you must consider factors such as APR, interest rate, monthly repayment, and reviews from previous customers.
You can use the Better Business Bureau to check whether the online personal loans lender is established. If you are obtaining the loan from a bank, you must make sure that the bank is fully regulated in your area. You must keep in mind that there are a lot of hidden terms that the lender will not reveal to you upfront. So, it is crucial that you read the terms before submitting the online personal loan application. If you need clarification on certain phrases in the term, you should not hesitate to give their customer support representative a call or contact them via telephone and email.
You must take note of how the online lender respond to you when you contact him. The online lender must be friendly and honor the quote that they promise in an online ad. The representative must educate you about the different available personal loans programs and their features for example whether the rate is fixed or will fluctuate from time to time.
The online lender may require you to fax over a few documents such as identity proof, financial statement, proof of monthly payments for your loans, utility bill, and proofs of past income. You must prepare the financial statement for the last 2 – 3 months. You can send in the utility bill or a copy of your lease to proof your physical residential address. For proof of identification, you will have to submit your passport and social security number. The documents you should submit for proofs of past income are W-2 forms, tax returns and the payslip from the company you are working.
In conclusion, it is very convenient to sign up for a personal loan online but you must be willing to spend time to do research. The time you invested for doing comparison between different lenders can help you to find a loan with a favorable interest rate that match your budget.