10 Golden Rules You Should Have in Mind When Taking a Personal Loan

In the world we live in now, you find that most people never usually have enough money or funding to get them through the day, let alone help them achieve or meet their goals in life. Most people end up being forced to borrow money from lenders just to meet any of their needs and or get them going for some time. And that is where the loan www.northcash.com lenders now come in.

Technology has seen to it that the lending industry changes a lot with bank loans now taking less than a minute to be approved and disbursed and many cheap loan lenders popping up everywhere. That being said, here are 10 golden rules you should follow to ensure you land the best personal loan available.

1. Don’t borrow more than you will be able to repay

Never live beyond your means. Only take a loan that you will easily be able to pay back. Banks are currently tripping over each other trying to attract businesses which make taking loans even easier. But don’t just take a loan, and a huge one for that matter, just because you can and it is available.

2. Keep your tenure as short as possible

Major loan lenders offer the maximum loan tenures at 30 years where you also find that the longer your tenure is, the lower your EMI will be. This concept alone makes going for the longer tenures the more enticing. But still, it is wise to go for the loan tenure which you can afford to avoid any complications.

3. Ensure timely and regular repayments

In any business or practice, you perform, it always pays to be disciplines and timely. And the same goes for the loan repayments and can take you a long way when it comes to making timely repayments. Be it a short-term or long-term loan, it pays a lot to make timely and regular repayments. This will also build your credit profile as well.

4. Don’t borrow to invest or splurge

Another one basic rule of investing is to never invest borrowed money. Most investments can sometimes not really be able to match the total rate of interest to enable you to pay your loan. And the investments that can do, like equities, are usually too volatile.

Also, try avoiding taking a loan for discretionary spending.

5. Take insurance with big-ticket loans

It is always wise to take insurance covers for loans like of cars or large homes as well. Also, you need to ensure you buy a term plan which will ensure your family doesn’t get saddled with any unaffordable debts should anything happen to you.

6. Keep looking for better rates

Ensure you always keep your eyes open and ears sharp for any changes on the market for better loan rates. Many lenders are popping up every day. Some with very attractive low rates which can be very enticing.

7. Understand the fine print

Many people never really take their time to read through the loan documents. You need to ensure you read and understand the terms and conditions carefully so as to avoid any unpleasant surprises later on.

8. Substitute the high-cost loans

In some instances, you may have too many loans running at the same time. The best idea is to consolidate all your debts under one low-cost loan. You can make a list of all your outstanding loans and see which high-cost ones you can substitute with the cheaper loans.

9. Never nix retirement by avoiding loans

Nobody wants to burden their children with loans that they took especially for the purposes of their education. These loans can impact your child’s life in the future. Like when you decide to use your retirement corpus to get your child through the education system. Plus, students also have options like scholarships and loans to help them fund their education.

10. Keep your family and spouse in the loop about your loan

Discuss with your family before you make any step to take a loan as the repayments will also impact the overall finances of your entire household.

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