Need a Loan? The Things You Should Understand When Searching

In need of a large sum of cash, but don’t have the savings for it? You may want to consider taking out a personal loan. Fortunately, financial search engines like Fiona can help match you with loan offers in less than 60 seconds!

Searching for personal loans can be confusing—they each have an individual interest rate, monthly payment and loan term based on your credit profile.

Before you decide what is best for you, let’s go over the various aspects of loan features.

To figure out if a low interest rate is the most important feature to you, answer the following questions. Are you in a hurry to pay your debt down as quickly as possible? Can you afford slightly higher monthly payments? If you answered yes to both questions, then a low interest personal loan may be a good option for you. 

If having a low monthly payment is critical to you maintaining your budget, then you’ll want to focus on that feature when searching. While the interest rates may be slightly higher than loans with higher monthly payments, a low monthly payment might help you avoid paying late fees and defaulting on the loan.

If you’re looking for a loan that you can pay off in as little time as possible, then a short loan term will work for you. While many personal loans have terms of up to 5 years, you can find loans that have terms as short as 36 months. This set time is helpful for borrowers who are eager to pay off their debt, but you have to be sure you can make the required monthly payments. As long as it fits your budget, a short term loan is a good choice for those who want to minimize the amount of time that they’re in debt. Some lenders offer 24-month personal loans for borrowers who decide a short loan term is the most important aspect they’re searching for in a loan.

Having to pay your loan back over the course of 84 months might sound like a long-term commitment, but this is a smart option for those who know their budget cannot handle a large monthly payment. Yes, you might pay a bit more in interest over the long term, but taking out a loan that works with your budget and your financial situation is better for your credit score than taking out a loan you might have trouble paying back.

It is imperative that you know what aspects of a loan are best for you budget and financial situation. Once you’ve used the above guide to figure out whether the loan term, monthly payment or interest rate are most important to you, visit Fiona to get matched with personal loan options that match your needs.