When taking out a UT cash loan, understand that intentions are different from results. Your goal is to get the fund you need and minimize the markup you’re obligated to. It’s always a two-objective, and you can’t concentrate on the first half alone. If you do, you could become trapped in a debt cycle that hurts your credit and drains your financial resources for a long period.
To find the most favorable deal to ink, ask your prospective lenders these important questions first:
1. What Is Your APR?
The annual percentage rate (APR) determines the real cost of your loan. It’s similar to the interest rate except it involves other applicable fees into the equation. Expressed in a percentage, the lower the APR, the better the overall deal is.
2. How Much Do I Need to Pay in Dollars?
If you’re not familiar with financial terms, don’t pretend that you are. Talk to your lender in a language that you understand: dollars. Find out how much you need to pay to finish your loan. It has to be specific to the last penny to avoid unintended charges.
3. When Do I Have to Repay Everything?
Know how soon you need to pay your loan back. Due dates can be tricky as they might only represent when your lender is willing to wait before imposing penalties. Some lenders allow partial payments, while others don’t let borrowers to get away scot-free.
4. What Penalties Do You Charge?
Even if you’re confident, you can pay everything back in time. It’s imperative to understand the worst-case scenario if you couldn’t pay what you owe. Generally, lenders allow borrowers to roll over the cash loan to extend the original term in exchange for a fee. Exercising this option several times would effectively increase the cost to acquire the loan without decreasing the balance.
All loans come with risks, but responsible borrowers know how to calculate them well. Talk to your prospective lender with curiosity, prudence, and foresight to avoid regretful mistakes with long-term consequences.