So, you want to get a loan?
Here are some simple tips that will help you make an informed decision about what kind to get, and who to get it from.
First ask yourself: do you really need it?
Can you manage without it? Is it for something frivolous, like a holiday? Could you get money by other means: part-time job, from a relative, sale an asset?
Don't put a monkey on your back if you can avoid it.
A loan varies according to:
The amount borrowed;
The interest rate;
The type of rate (fixed or variable);
The term (repayment time in months or years);
Associated fees (broker, origination, prepayment etc.);
Insurance required by lender.
You are buying money for more than it cost lender. Simple.
It's a mistake to only care about interest rate; there are also arrangement fees and prepayment penalties to consider. Many 'no fee' credit lines have a pre-payment penalty. This is how brokers and lenders make their money. Work out total cost of your loan before committing.
To ensure you get best terms, keep your credit-line as small as possible. Loan officers tend to count total line of credit available as a liability. Pay off small debts before due date. Cancel credit cards you are not using. Consider their interest rates and fees, when deciding which cards to keep.