As a comprehensive financial services firm in Ohio, 1st Choice Financial isn’t just committed to making the cash loan process easy and quick — they also make it a priority to help consumers learn how to improve finances. That’s why they make their small loan application process clear and simple. This lender, with nine locations throughout Ohio, explains that while personal loans are some of the best arrangements when you need fast financing, it’s important to understand what these agreements mean.
If you’re new to the process, 1st Choice Financial has a few quick tips to make getting a small loan stress-free.
Here’s What to Know Before Obtaining a Small Loan
1. Small Loans Carry Interest — But Rates Vary
Sometimes, a small loan can be more affordable than if you were to finance a purchase with a credit card. And while many lenders offer low, fixed interest rates, not all do. In addition to being clear about your interest rate, you should also look for fees that can be part of the loan agreement — such as origination fees or pre-payment penalties.
2. Not All Small Loans Need Collateral
Often times, a lender will lower your interest rate or offer you a larger loan amount if you are able to put up a valuable asset as collateral — like a car title. However, smaller unsecured loans are also available. While unsecured may require you to provide proof of income and submit a credit check, you won’t be putting your assets at risk.
3. Credit Counts
Some lenders will extend fair rates on small loans to those who have bad credit. However, not all lenders will be flexible, and some could tack on hefty interest rates for poor credit. As such, it’s usually a good idea to try and repair your credit as much as possible before applying for a loan.
4. You’ll Need Some Documentation
While getting a small loan is usually a fast process, you should have some key pieces of documentation ready to speed up the process. For example, you’ll likely need to provide a valid form of identification, proof of address, and some form of income verification, such as previous pay stubs.
5. Small Loans Can Be Used for Anything
One of the great things about small cash loans is that they can be used for anything you require funds for. For instance, while some loans are only good to purchase vehicles or buy a house, personal loans can be used for everything from paying off high-interest debt to covering emergency medical expenses.
To learn more about how to get an affordable small loan in Ohio, 1st Choice Financial has nine convenient locations open Monday through Saturday. You can also start a personal loan application online.