Need Your First Personal Loan? No Problem
Are you considering taking out a personal loan to launch your business? And is this your first foray into the field of personal loans? Never fear, help is here. Read on to muster your courage.
Don’t Fear Your Fear
The first time you do anything is scary. In some cases, it’s our fear of the unknown that makes us hesitant to take that step towards new situations. In other cases, like when you’re about to take out your first personal loan, it’s the fear of the consequences of your actions that turns you timid. Debt is a stressful concept to consider, especially when it comes with interest, late fees, and other financial penalties if you can’t make your payments.
But a little fear is a good thing! It can motivate you to avoid these consequences by making sensible decisions regarding your loan. To guarantee you make the right choice, you should do your research. It may be the last thing you want to do after a long day at work, but it’s worth the effort. You can reward yourself by watching the next episode of Master of None after you’re done.
How about a Cash Advance?
Spend some time getting to know what you can expect from a typical cash advance. It will differ from company to company and state to state. However, typically a small-dollar loan rarely exceeds $1,000. It’s kept small due to its short term. In some cases, you’ll be expected to repay the entirety of it by the date of your next paycheck. In others, you can arrange a more flexible repayment schedule involving multiple installments.
While there is no federal law regulating the terms of these products, each state has its own lending laws that control a cash advance’s size, term, and fees. It’s important that you take the time to find a lender that follows these regulations properly before you apply for assistance. The only way to guarantee if a lender offers rates, terms, and conditions in line with your state government is by confirming it has the appropriate license to lend.
As this certificate is an essential feature of their business, any lender should take pains to make this information obvious to its customers. Don’t just take the company’s word that they are a state licensed lender. Make sure they provide the certificate on their website, just as MoneyKey does. This particular lender shows its certificate at the bottom of each of its product’s pages, so there’s no confusion about its authority to operate.
Know What You’re Getting Into
Last but not least, you should do some personal finance homework. Finding a payday loan from a state licensed lender won’t mean much if your budget can’t support the repayment of the principal and all of its associated fees and interest. Get intimate with your finances, so you know which rates and terms work best with your budget. If you’ve never made a budget before, use this checklist as your guide.
Have all of the facts before you make the big decision. This will ease the stress you feel before you apply for your very first personal loan. Learn what the typical rates and terms are for your location and see if they fit with your financial capabilities. If they do, don’t forget to apply with a state licensed lender. Then your first time borrowing won’t be so scary.