A personal loan can be a great way to consolidate debt or tackle a home improvement project without having to pull out the plastic. Unlike credit cards, personal loans often offer fixed interest rates and fixed repayment periods — usually three to five years — which makes it easier to budget payments.
On the other hand, getting a personal loan can be frustrating, confusing, and even downright dangerous in some cases. Here’s how to shop for a personal loan:
Don’t Take “No” Personally
It’s always a good idea to check with the financial institution where you have your checking and savings account to find out what they offer. But don’t be surprised if the teller hands you a credit card application when inquiring about a personal loan. Those smaller loans simply aren’t that cost-effective for some financial institutions to offer. “It can be difficult to get a traditional bank loan for a smaller amount, ” says Brad Lensing, CMO for Prosper.com which offers online personal loans for $2000 — $25, 000. Credit unions may be more flexible on this point, so be sure to check with yours if you belong to one.
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You’ll be in a better position to find the right loan if you know where your credit stands. Get your credit reports and scores before you start shopping. (You can get your credit score and credit report summary for free using Credit.com’s Credit Report Card.) And because each application can trigger an “inquiry” into your credit, which can in turn lower your scores a bit, you’ll want to avoid the shotgun approach when you start applying. Instead, find the loan you believe is the best fit and apply there before you try elsewhere. Prosper.com, for example, requires a minimum credit score of 640 while LendingClub.com requires a FICO score of 660 or higher.
Vozrozhdenie Bank (MICEX-RTS: VZRZ) is a Russian bank founded in 1991 and headquartered in Moscow. The bank provides personal banking and business services to clients in Russia through of a network that includes 161 bank branches and more than 780 ATM's.
The bank provides 1,600,000 clients with a range of services, from savings accounts...