11 March, 2017

How to find the best loans for yourself

To find a cheap loan or the best loan for yourself you should ensure that you shop around,  a loan is just like any other purchase in your life  and so try to find the best deal.  If you apply to one lender they may refuse you  their best rate. You should try other lenders rather than just accept an unsuitable or unfair rate.Remember that too many searches on your credit file in a short period suggest that you are desperate for money and so maybe likely to default and so this affects your score negatively.

Personal Loans

A personal loan is usually unsecured and is available to a home owner or tenant. You can usually borrow up to £25,000 which can be repaid for up to a 10 year period.An unsecured loan is not secured to your home meaning your home is not at risk if you default.

Secured Loans

A secured loan also known as a homeowner loan or home loan is a loan secured against your property. It offers higher loan amounts than a personal loan, usually up to £100,000, and can be repaid up to a period of 25 years.Your home is at risk if you default but these loans usually have low APR rates.

Home Owner Loans

A homeowner loan or home loans can be either a personal loan or secured loan that is only available to home owners. Usually these loans have a lower APR.

Consolidation Loans

A consolidation loan or debt consolidation loan is one which allows you to consolidate your existing debts (such as loans, credit cards and store cards) into one monthly payment usually because you can reduce the total amount you pay each month and simplify your finances.  Helps in cutting your expenses and please do read and understand the terms and conditions.

Payday Loans

A payday loan or cash loan is a very short term loan usually repayable over a short period of time.  These loans are notorious for their high APR rates.

A bad credit loan or adverse credit loan is a loan available to those with a poor credit rating. Your credit rating may be affected because you have CCJs or have defaulted on repayment of other credit such as a mortgage or credit card.  These attract high interest and should be sourced from legitimate lenders.

Car loan or car finance is a loan used to purchase a new or used car. A personal loan used to finance your new car can be cheaper than obtaining finance thorough your car dealer. Choose wisely, you do not have to get a financial loan through the car dealer.

You Might Also Like

Comments are closed.