How many first time borrowers really know about loans? It is a science you do not learn at school and yet, you do not need to be especially wise to make a good deal. It just takes some preparation, as in all matters of life. If you need a loan and you are new in these matters, read on.

The Preparation

The necessary first question is “Do I really need a loan?” If the answer is yes, then find out exactly how much you need, how much you can afford to pay per month and determine what kind of loan you need. In current times, there is a loan for every need and every condition, making things much easier than years ago.


Poke your nose into the Net and get yourself a few free quotes. This way, you will begin to know what it feels like to get down to business without it being the real thing. It is like rehearsing for your act on stage. Now, you know something about APR’s (Annual Percentage Rate) and the different types of loan available.

A Few Definitions

A secured loan means that the money you borrow is secured by some property or valuable you possess. If you apply for an unsecured loan, on the other hand, you will need good credit and a good, stable job to back up the loan just with your signature.

A loan can be specifically for a determined use, like auto loans and mortgages or for general purposes, when you do not need to inform what you will do with the money you borrow.

The Easiest Loan

If you are a homeowner, you will find it easy to get a home equity loan. This type of loan is secured with your property, for which reason, as it is a low risk operation for the lender, you will obtain a low APR and a long term, which means a relatively low monthly payment.

The downside of this kind of loan is that you are risking your property, which can be repossessed by the lender, should you not pay up.

Other Considerations

Make note of the questions you want to ask the agent when you finally apply for your loan and go straight to the point. Lenders generally ask questions about your job history, banking accounts and monthly expenditure. So, be prepared and give straightforward answers.


Remember to go for a win-win deal. If the lending company or bank is reliable, they will surely look for the same result. And talking about reliability, if an agent is not willing to let you have a copy of the contract to look into at home or is in an evident rush to get you to sign up, shake hands, say good-bye and look for another lender. There is always another one on the line.

If you have not realized yet, you have the power. There is such a great offering market, that lenders need you to stay in business. Feel confident and sign only when you are sure enough.


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