We were asked the following questions by Elena:
“I want to borrow a 400 dollar loan. Although it may be little, but it’s very important to me and I plan on making the best out of it. Is there anything I should consider before going ahead to get this loan?” – Elena
This is a very big step to take. There are certain things all money borrowers need to do first even before applying for a loan, be it a one million dollars loan or three cents. However, before applying for a loan, there are certain things that should come to your mind as a borrower.
A direct money lender must always be legal and licensed by the law which governs your state. He must not be legal in a different state like Berlin, United Kingdom or any other state, he must only be licensed in your own state. Although the company that is suppose to give the loan is legal in its own state, it has not right whatsoever to give out loans to an individual of another state. Always know the regulation that govern private loans at your finger tips. Even if it is a 400 dollar loan, it still differs in each state.
Most states such as West Virginia and New York do not allow this type of loaning, but there are other states such as Texas and Oregon where the regulations are more open. You can always find out the list of states that permit this type of loan. Also make personal findings with the Financial Institutions of your state to know whether or not the lender has fulfilled all the requirements of the state.
This is something to take very seriously. If you are borrowing a 400 dollar loan today, do have an extra sum to pay as interest when paying back the loan you borrowed? Not to mention paying for other hidden charges such as processing fees and other charges.
If you don’t make plans for all these, then it will only mean that you are either defaulting on it or prolonging the refund period. Both of these cases can put you into serious financial problems when it’s time to payback what you have borrowed.
When borrowing any amount of loan, there are some fees and interests that come with this. Depending on your state, the rate of interest may be from 15% to 25%. When borrowing a loan whether it is a 400 dollar loan, you need to get ready to pay all the extra charges and fees that comes with it. If you are not careful enough, you may end up paying back far more than you have borrowed.
Even individuals with a low amount of credit can now borrow a 400 dollar loan. Though it is small, but it is a good way to easily manage the loan you have taken and pay back more easily without running into any financial problems.
Bear in mind that a direct lenders who is licensed are more likely to offer some loan packages which are governed by fee limits and interest caps. You can utilize loan referral websites to make the job easier for you.