Once you’ve submitted your application, the lender will review your information and decide. If you’re approved, the lender will send you a loan agreement outlining the loan terms. Be sure to read over the contract carefully before signing it. Once you’ve signed it, the lender will send you the borrowed money.

If you’re taking out a personal loan, ask yourself what you’ll use the money for. For example, will you use it for home improvements, consolidation of debt, or other purposes? It’s essential to be clear about why you’re borrowing money to make wise decisions about how to use it.

4. Keep An Eye On Hidden Fees

Some personal loans come with origination fees, late fees, or prepayment penalties. These fees can add up, so it’s important to factor them into your decision.

In addition, some personal loans have variable interest rates that can change over time. Variable interest rates mean that your monthly payments could go up or down. If you’re considering a loan with a variable interest rate, make sure you understand how it works and what could happen if the interest rate goes up.

Be prepared to pay back your loan. Personal loans typically have terms of three to five years. This means you’ll need to make regular payments on your loan for a period of time before it’s paid off. So make sure you can afford the monthly payments before applying for a loan. You may have questions about your loan or need help making a payment. It’s essential to choose a lender that has good customer support so that you can get help when you need it.

Next Up… How Good Is There Customer Support?