3 Questions to Ask Before Borrowing Money

There are times when there just isn’t enough money between paychecks to cover expenses. It could be that an unexpected expense caused the checking account balance to be off. It could be that a medical concern ensured that a paycheck was shorted. Whatever the reason, there are times when it’s important to borrow money from a reputable location to get through a rough patch. Before borrowing, there are a couple of questions that need to be answered.

What is the interest?

A borrower needs to know just how much it is going to cost to get the necessary funds. Find out what the interest is and how it is calculated. This makes it easier to understand just how much the loan is going to cost in the long run. It can also help with the creation of a payback plan to ensure the entire amount is repaid on time without accruing additional interest.

Are there any other fees?

In addition to the interest, find out if there are any other costs associated with the loan. For example, ask if there is a fee for repaying the loan earlier than expected. Also, ask about what happens if a payment isn’t made on time. There are often late fees if a borrower misses a payment deadline. These can add up quickly, so it’s important to pay the necessary amount when due to avoid additional costs.

When is the money due?

Make sure that it is very clear when the money is due. Find out when the first payment needs to be made. Is there a certain day the money is due? If so, is it due by a certain time of day? These questions might seem small and insignificant, but it’s important to have a clear understanding of the lender’s expectations to keep the costs down and repay the money as quickly as possible.

If you’re in need of some cash to get you through a tough situation, check out MoneyBoat. Take advantage of the exceptional customer service and get all of your questions clearly answered. There are several payment options to choose from, making it easy to find a loan that best suits your needs.