Online Pitfalls You Should Avoid
There may come a time when you need cash immediately but you don’t have money on hand. When this happens, you become desperate and begin to scramble for emergencies loans. Regardless of how urgent your situation is, do not fall for these mistakes when you apply for loans online. You can avoid these mistakes by trying our ACCESS LOANSTM product.
Mistakes To Avoid When Applying For A Loan Online
-
Not Shopping Around
When you’re in a hurry, you tend to accept the first offer, but this is the worst thing you can do. You should make sure you’re getting the best rates and terms before signing any documents. Look into all available options and compare their offers to make the best decision.
-
Not Researching The Lender
There are a lot of unscrupulous lenders around nowadays waiting for desperate individuals to fall into their traps. You don’t want to fall into these debt traps. Research your chosen lender and make sure that they have the right documents and have legitimate offers.
-
Not Checking Hidden Costs
Always check the fine print of your loan documents. A lender may give you an attractive interest rate but rack up your fees with hidden costs. Instead of focusing only on the interest rate, ask the lender for the Annual Percentage Rate (APR) which should cover interest rate, finance charges, document fee, processing fee, and so on. You should also ask if there is a penalty for early payoff. All these factors will determine the total cost of your loan.
-
Not Checking Your Credit Score
Many people are afraid to check their credit score for fear that it will negatively affect their credit. This is but a myth, however hard pulls do cost deductions. This occurs when a creditor or lender checks your credit score when deciding whether or not to approve your loan or credit card application. In contrast, when you check your credit score or an institution checks your score for a preapproved loan, this is called a soft pull and does not cost points.
Checking your credit score is good for your overall financial health. It’s good to know where you stand when applying for a loan so you know the appropriate terms to expect. If you do have a bad credit score you don’t need to worry because you still apply to our Access Loans program.
-
Not Having A Plan For Repayment
When applying for a loan, you should calculate your repayment capacity or, in other words, whether your income can accommodate the monthly payments of your loan. It’s good to have a plan for loan repayment rather than simply winging it.
2022 ACCESS LOANS™ product is offered by Safra National Bank of New York (“SNBNY”) Member FDIC, Equal Housing Lender.
