Picking out the right personal loan | Waco Today

Title loans offer higher loan amounts and the length of repayment periods vary. Obtained by posting an important asset (i.e. car title, mortgage) as collateral, you risk losing the asset and more if you can’t repay the loan and its high interest rates (usually well over 100%). Like with pay day loans, your credit won’t be improved with timely repayment.

Personal installment loans let you borrow a set amount of money (usually $500-$5,000) and then pay it back in equal monthly installments over the life of the loan (typically four to 46 months) with accumulating interest. Installment lenders work with borrowers to figure out the best monthly payment amount so that borrowers have enough funds left to cover essential monthly expenses.

These loans typically come with lower interest rates, and, because the lender reports payment behavior to credit bureaus, also offer the opportunity to build credit and long-term financial stability. To learn more about installment loans versus pay day and title loans, visit LoansbyWorld.com.

Before applying for any loan, read the fine print for interest rate, fees or prepayment penalty details. A bit of research can also clue you into whether you’re dealing with a reputable lender.

Reputable lenders will have a phone number and legitimate physical address that can be verified on Google and the Better Business Bureau. All lenders and brokers are required to register in the states where they conduct business, so look for a state license. Beyond these basics, prioritize a track record of honesty and customer success. Talk to trusted friends or colleagues who’ve been through the lending process. Lastly watch out for red flags — reputable lenders will never call or email you out of the blue with offers.