Don’t Get Soaked With Your Next Loan
A loan certainly can benefit you and your family when the terms are right, but many people get trapped in loans that drain their finances.
Don’t let that happen to you. When you’re shopping for a loan, always be on the look-out for loans that feature balloon payments (a large payment required to pay off the loan at the end), high interest rates and penalties for early pay-off of the loan. And always be certain you can afford the monthly payments. Steer clear of these.
Other Tips For Avoiding High-Cost Loans
- Always shop around and don’t take the first loan you’re offered.
- Ask questions.
- If you don’t understand the loan terms, ask someone you trust to look at the documents.
- Don’t trust advertisements promising “No Credit? No Problem!”
- Ignore high-pressure sales tactics.
- Always look at the total cost of the loan. Low monthly payments aren’t always a “deal.”
- Be wary of promises to refinance the loan to a better rate in the future.
- Never sign a blank document or anything the lender promises to fill in later.
Visit PrimeWay Federal Credit Union’s Loans page to start searching for a loan that’s right for you. And check out our loans calculator that explains how different payment frequencies affect your payment or loan amount.