Here are a few pointers on getting secured and unsecured loan offers online:
- Avoid taking on a big finance deal thinking "Well, I can always go bankrupt if I get into difficulties". This is foolish. If you go bankrupt, it will be recorded on your credit report and you will find it very hard indeed to get credit with anyone in the future, except at loanshark rates. Credit referencing agencies sift court records, to keep their databases up to date.
- Overpay your loan deal if you can do so without penalty, especially if your repayments are re-calculated week-to-week or month-to-month. This means you will accrue much less in interest charges over time, and get tranquility of mind sooner. Get your outstanding finance deal amount down, and get on with the more enjoyable things in life. If you have different small loans with different brokers then you can combine them all into one monthly payment. The easiest way is to get an inexpensive loan to pay towards more costly ones, such as credit card debts.
- Be suspicious of promises of gaining a finance deal quickly. A lot of customers are told that their finance offer will close within a specific time. They do not make repayments on existing debts, in anticipation of the new loan. After several delays, they become overdue, with no money from the new loan. Some brokers then order new credit reports, and charge the applicant higher fees, and/or a higher rate, because of the delinquent loan(s), which resulted from delays caused by the financier themselves!
- Ensure you comprehend and are willing to pay all of the fees listed. Origination fees are usually about about 1% of your loan. If you have poor credit, you will likely have to pay higher rates and fees, but shop around. Be wary of statements like "No cost to you". Some lending agents will attach closing costs to your balance rather than expect you provide money upfront at closing. Ensure you comprehend the total fees you are liable for.
- If applying over the internet, you should not have to cough up for processing fees, as there is minimal manual labour involved. You can cut out a lot of hassle and cash in the approval process. Research brokers. Only by requesting quotations and comparing the small print can you make sure of getting the best rate. With some websites you can make side-by-side comparisons, while other web sites will email you multiple financing offers.
- Finance agents work diligently to draw in buyers by negotiating lower rates with lenders, so you frequently will find better bargains through their websites than through the high street or newspaper or television ads. It's important to note that the finance application process will be affected by the amount you're trying to borrow, your debt-to-income ratio, your credit history and other factors.
- A loan deal is a contract between a borrower and a lending company. When you are researching finance deals, you must first determine what kind you're looking for: a personal, car, debt consolidation, poor credit or a bridging loan. Amongst the range of loans 'on sale' there are two basic types: unsecured and secured. Secured loan deals are those whereby you set some property against your loan deal as security for the lending agent. Unsecured finance deals do not expect any property to be set against them but they accrue higher interest rates and it is necessary to have a good credit record to obtain finance of this type. Personal loan deals are useful when you need to cover certain disbursals or you need to make essential purchases.
- The total cost of your loan will depend on the annual percentage rate and associated fees. The _annualised_ percentage rate (APR) takes into account the whole interest amount _and_ associated fees. The lower the APR figure the less finance costs will be. Interest on loan deals is charged in one of two ways, as either a fixed or variable rate. A fixed interest rate is guaranteed for the whole term of the loan deal and it won't be dependent on market fluctuations. The variable interest rate is usually lower than fixed interest rates in the beginning; however they do not offer the security of a fixed interest rate. Once you make a final decision on a finance deal, make sure that you are aware of the total costs involved, including any extra fees attached to early repayment. You need to be sure you can afford them.
I hope these few basic ideas will be of some use to you in getting a good internet finance offer. - 16732
- Avoid taking on a big finance deal thinking "Well, I can always go bankrupt if I get into difficulties". This is foolish. If you go bankrupt, it will be recorded on your credit report and you will find it very hard indeed to get credit with anyone in the future, except at loanshark rates. Credit referencing agencies sift court records, to keep their databases up to date.
- Overpay your loan deal if you can do so without penalty, especially if your repayments are re-calculated week-to-week or month-to-month. This means you will accrue much less in interest charges over time, and get tranquility of mind sooner. Get your outstanding finance deal amount down, and get on with the more enjoyable things in life. If you have different small loans with different brokers then you can combine them all into one monthly payment. The easiest way is to get an inexpensive loan to pay towards more costly ones, such as credit card debts.
- Be suspicious of promises of gaining a finance deal quickly. A lot of customers are told that their finance offer will close within a specific time. They do not make repayments on existing debts, in anticipation of the new loan. After several delays, they become overdue, with no money from the new loan. Some brokers then order new credit reports, and charge the applicant higher fees, and/or a higher rate, because of the delinquent loan(s), which resulted from delays caused by the financier themselves!
- Ensure you comprehend and are willing to pay all of the fees listed. Origination fees are usually about about 1% of your loan. If you have poor credit, you will likely have to pay higher rates and fees, but shop around. Be wary of statements like "No cost to you". Some lending agents will attach closing costs to your balance rather than expect you provide money upfront at closing. Ensure you comprehend the total fees you are liable for.
- If applying over the internet, you should not have to cough up for processing fees, as there is minimal manual labour involved. You can cut out a lot of hassle and cash in the approval process. Research brokers. Only by requesting quotations and comparing the small print can you make sure of getting the best rate. With some websites you can make side-by-side comparisons, while other web sites will email you multiple financing offers.
- Finance agents work diligently to draw in buyers by negotiating lower rates with lenders, so you frequently will find better bargains through their websites than through the high street or newspaper or television ads. It's important to note that the finance application process will be affected by the amount you're trying to borrow, your debt-to-income ratio, your credit history and other factors.
- A loan deal is a contract between a borrower and a lending company. When you are researching finance deals, you must first determine what kind you're looking for: a personal, car, debt consolidation, poor credit or a bridging loan. Amongst the range of loans 'on sale' there are two basic types: unsecured and secured. Secured loan deals are those whereby you set some property against your loan deal as security for the lending agent. Unsecured finance deals do not expect any property to be set against them but they accrue higher interest rates and it is necessary to have a good credit record to obtain finance of this type. Personal loan deals are useful when you need to cover certain disbursals or you need to make essential purchases.
- The total cost of your loan will depend on the annual percentage rate and associated fees. The _annualised_ percentage rate (APR) takes into account the whole interest amount _and_ associated fees. The lower the APR figure the less finance costs will be. Interest on loan deals is charged in one of two ways, as either a fixed or variable rate. A fixed interest rate is guaranteed for the whole term of the loan deal and it won't be dependent on market fluctuations. The variable interest rate is usually lower than fixed interest rates in the beginning; however they do not offer the security of a fixed interest rate. Once you make a final decision on a finance deal, make sure that you are aware of the total costs involved, including any extra fees attached to early repayment. You need to be sure you can afford them.
I hope these few basic ideas will be of some use to you in getting a good internet finance offer. - 16732
About the Author:
James O' Reilly is an author for UK secured loans and mortgages UK internet sites in London, Great Britain.
