A survey in 2019 showed that nearly 73.2% of Canadians used payday loans or had some debt. And while loans have long been associated with a lot of negativity and stereotyping, there are limitless, viable reasons to borrow a loan.
Perhaps you want to cater to everyday expenses or cover unexpected expenses. You could also want to consolidate debt or make a large purchase such as a car, a new house, or a home renovation.
Whatever your reason for getting a loan is, the first step to successful borrowing is to look for reliable lending services. But how do you identify a good lender amid thousands of such service providers in the market?
1. Consider the Interest Rates and Borrowing Fees
The main reason for borrowing a loan is because you are in a financial fix. In such a case, you cannot afford to get a loan which only makes your financial condition worse than it already is.
The right loan lender should be considerate and offer loans at reasonable interest rates. Therefore, you should take your time to compare the interest rates offered by different loan lenders before you settle on the best.
Moreover, the lender should be transparent about any additional or hidden costs. They should have the fees listed on their website; if not, they should willingly disclose this information before you start your application. Some of these charges include:
- Application fee
- Appraisal fee
- Credit report fee
After reviewing these charges, you can decide whether the lender is suitable for you.
2. Check Their Customer Service
Your customer experience will determine the professionalism of a lender. For example, how fast do they respond to your inquiries? Are the customer service agents friendly? Such considerations will help you assess a lending service’s customer services.
You need someone to walk you through the loan application process. This step is critical, especially if it’s your first time using a particular lending service.
It would help if you also had guidance on the different loan options, their requirements for eligibility, interest rates, and repayment terms. Otherwise, you are bound to make mistakes that will ultimately cost you.
For instance, you may mistakenly borrow a payday loan instead of a long-term loan. Consequently, you may get into bad debt if you can’t raise the loan principal plus interest within the short term.
Look for a loan lender who has borrowers’ best interest at heart and is willing to walk them through the borrowing process to the end.
3. The Range of Loans Offered By the Lending Services
A quality lender should offer different loan options to accommodate every borrower’s needs.
For example, a loan type that works for someone else may not suit you in terms of interest rates and repayment terms. Also, it would be best to consider your credit score to establish your eligibility for specific loan types.
Some lenders like Kingcash offer no credit check loans, suitable for individuals with credit challenges. So, if you have been struggling to keep your credit score on track, look for a lender with this service.
In the same way, some loan lenders only offer secured loans. So you will need to present collateral to qualify for a particular amount. If you feel this is not the right option, you should look for a lender that offers unsecured loans.
4. Simple Loan Application Process
A quality loan lender will have a straightforward and easy-to-understand loan application process. They should also be able to provide clear and concise information about the terms of the loan, including interest rates, repayment periods, and any fees or charges associated with the loan.
Furthermore, a suitable loan lender will provide you with personalized service throughout the process. They should be available to answer any questions and help you through the application process.
The entire process should be online and only take a few minutes to complete. You should also be able to track the status of your application so that you know when to expect a decision. If the loan application process is tedious and keeps taking you in rounds, that could signify that the lenders are a scam.
5. Flexible Loan Payment Terms
With flexible loan payments, you can choose a repayment schedule that fits your budget and lifestyle. As a result, you shouldn’t have to worry about being late on your payments or defaulting on your loan.
A suitable lender will also work with you if you have a financial emergency and need to defer your payments. This way, you can avoid defaulting on your loan and damaging your credit score. In addition, this step helps you build a strong and healthy relationship with the lender, which is essential in building trust.
Remember to read the fine print carefully to ensure you understand the terms of the loan before you sign anything.
6. Pre-Approval Services
Pre-approval services come in handy when you want to shop around until you find the most fitting lender. With pre-approval, you can apply for a loan and get an idea of how much you’ll be approved for before you even submit an application.
This is beneficial because it allows you to shop for the best interest rate and terms without worrying about being denied a loan. It also helps you know exactly how much money you’ll need to borrow.
7. Fast Loan Approval
Among the most important things to look for in a loan lender is how quickly you can get your money. A quality lender can get you the money you need within 24 hours or less. In some cases, you may even be able to get your cash the same day you apply.
Fast loan approval is crucial when you urgently need the funds. You don’t want to wait for weeks or even months to get your loan. If you’re in a financial emergency, you need to be able to get your hands on the money as quickly as possible.
Reach Out to Us for Quality Lending Services
Taking out a loan can be a big decision, but it doesn’t have to be a stressful one. Keep these factors in mind when choosing lending services to ensure you find the best fit for your needs. With the right lender, you can get the money you need quickly and easily without any hassle.
If you want to borrow a loan but are unsure of where to start, don’t hesitate to consult us at King cash. Contact us today for financial advice and quick online loans approval.