Personal Loan Questions: Top Ten Questions People Ask

Banks Editorial Team · June 19, 2018

If you are thinking about applying for a personal loan, but you don’t know where to start, we have compiled a guide of personal Loan questions. These are the top ten questions people ask when applying for a personal loan.

Prior to diving into the process, compare rates and lenders to check if a personal loan is the right solution for you:

 

Personal Loan Questions: the Top Ten

In general, other people who applied for a personal loan have concerns about the overall process, costs and payments. As well as what they can use the money from a personal loan for. Let’s dig in the most popular personal loan questions:

    1. How does the process work to apply for a personal loan? Be clear on how to apply for a personal loan , the overview of the process and each of the steps, the questions the lenders will ask you. Find out the documentation required to apply for a personal and save time and costs.
    2. What do you need to qualify for a personal loan? If you are self-employed or you live on a fixed income may impact on the lender approving a personal loan for you. Other factors to have in consideration is how good credit score is or if collateral is required. You may also want to include a co-applicant.
    3. What are the terms and rates of a personal loan? Learn about what the interest rate and APR are, how much you will pay each month, when it’s your personal loan due and how different lenders may offer you different terms and
      conditions for your personal loan.
    4. How much you can borrow for how long? Have in mid how much you want to borrow and how long you think it will take you to repay it. When you ask the lender, they will be able to tell what the maximum you can borrow using a personal loan. Also, how long it will take you to repay the loan in total, if they have a renewal policy, or how many personal loans you can have at the same time.
    5. How soon will you receive my money? The time it takes to approve your application for a personal loan may vary from lender to lender. As well as how quickly the money will be transferred into your account after your personal loan application is approved.
    6. What is a personal loan? There are different ways of borrowing money. Get clear on the difference between secured and unsecured loans and personal loans and lines of credit.
    7. Does a personal loan have a prepayment penalty? Lenders may have penalties for re-payment early, so this is a must-ask question to make sure you don’t incur in unexpected costs for your personal loan.
    8. What are the up-front costs of a personal loan? As different loans may have different conditions, find out if you may need to any fees in advance of your loan. Understand what an origination fee is when dealing with a third-party loan facilitator.
    9. What happens if you’re late on a payment? Or you don’t pay the loan back? Or default on the loan? The lender should be able to tell you what happens if you don’t pay or are late. If you do your research and calculations right, this should not happen.
    10. Will applying for a loan affect your credit score? You should generally keep an eye on your credit score and understand the importance of maintaining a good credit score in general. You may also want to “shop around” before deciding on which loan is best for you, so knowing this will help you get a loan at the best rate.

Personal Loan Questions: Our methodology

Market research for frequently asked questions before applying for a personal loan is not conducted in general. With no official research on this subject, we investigated financial institutions ,
such as banks and other personal loan companies, who publishes questions they receive most often when people inquire about personal loans. As well as other media sites such as Forbes, First Financial or Quicken Loans.

 

 

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