How to Compare Personal Loans

Video Transcript

"Hi, this is Matt McKillen with Innovative Financial Group. A question that was posed to me today is, "How do you compare different types of personal loans?" Well, probably the first thing you want to look at when you're anticipating taking a personal loan is what is the interest rate. It can vary from lender to lender to credit union, a bank, if it's a paycheck advance type of institution. So really that's probably the first thing you want to look at obviously is where can I find the most or least expensive interest rate to pay. Another thing to look at when you're looking at personal loans is how long of a term do they have for repayment. Obviously if you borrow three thousand dollars on a two year loan, the payments are going to be dramatically higher than if you were able to get that same loan on a three or four year term. So I would say term is also another option to look at. One other option you may want to look at is that some companies have a prepayment penalty on their loan. Which means that if you pay the loan off too early, they can asses you for an additional finance charge. So those are a couple of examples you want to look at when you are shopping around or comparing different personal loan programs. My name is Matt McKillen. I'm with Innovative Financial Group."