Top Tips When Searching For A Personal Loan

Filed under: Finance — @ 12:54 pm, January 27, 2020.

Top Tips When Searching for a Personal Loan

by

Jason C Scott

When looking to buy a new car, make home improvements or consolidate current debts, applying for a loan is one option to consider. With so many lenders offering a wide range of products at varying rates, it can be tough to know which one is right for you. The perfect loan for you will be dependent on a number of factors; the amount you require, the term you d like to take the loan over and your credit rating to name just a few.

How much am I able to borrow?

Most personal loan lenders will offer up to 15,000; however some will offer up to 25,000. The amount available will be dependent on your credit score, those lenders offering 25,000 will require the applicant to have an immaculate credit history, it is also likely that their applicant criteria will be very strict. It is unlikely that someone who has a history of missed payments and defaults will be able to borrow over 5000 due to the risk involved to the lender.

How long am I able to borrow for?

This will vary depending on the amount you have borrowed; those lenders offering up to 15,000 will allow you to borrow the money over a 10 year term, generally those offering between 1000 and 5000 over a term of 1 to 5 years.

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By taking the loan out over a longer term will make the repayments lower; however the amount of interest accrued will increase and add cost to the total charge for credit. Many personal loan providers will allow you to pay the loan off early or make over-payments however there may be things like early repayment fees attached to your loan balance.

Why are some loans low interest and some high?

The lowest rates will be offered by banks, building societies and supermarkets, these rates will be reserved for those with very strong credit history with almost no missed payments.

For those with a poor credit history the best option would be to look down the sub-prime loan market, these will generally only offer up to 5000 and may require a guarantor to act as security for the loan; guaranteeing to pay the monthly repayments should the borrower fail to do so.

When looking to apply with subprime lenders always check reviews, despite the OFTs finest efforts, there are still a number of unregulated loan sharks out there.

How do I apply?

Different lenders will have different processes; however most have implemented a 100% online application. Applying online greatly speeds up the application process and vastly reduces the amount of paperwork involved. If you do not have access to the internet, most high street lenders will allow you to carry out an application in-store . This will not be an option when applying with subprime lenders as they will be purely based online and will not have a walk-in branch.

If you have any further questions regarding

applying for a loan

, visit

guarantorloansonline.co.uk

or read more articles by Jason Scott.

Article Source:

ArticleRich.com

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