On Which Way to Pay you can find different sorts of personal loans to suit you, whatever your needs. Personal loans can provide you with credit which is granted for your own personal use. Most of the personal loans compared for you below are unsecured loans which means that you do not have to provide an asset as collateral for the security of the loan. This can be advantageous as you do not risk losing an asset such as your home when you borrow money. However, it is important that you pay back money you borrow on time or you will ruin your credit history and potentially face legal charges. Before you borrow money please make sure that you read the terms and conditions of the loan you are interested in carefully to ensure that you understand your financial obligations.
Compare Personal Loans
Things to consider with personal loans
If you are considering a personal loan then it is really worth comparing as many different lenders as possible. The interest rates on personal loans vary and it is worth shopping around to find the best deal. In many cases that the more money you borrow the less interest the lender will charge. However, it can often be the case that the more money you borrow the longer period of time you will remain in debt and you are likely to overextend yourself. It is also worth checking your credit rating before applying for a personal loan. If you plan to apply for a market leading personal loan, it’s crucial that you check your credit rating first. Lenders are only required to offer their advertised 'typical' APRs to two-thirds of applicants. Therefore, if your credit rating is not in good shape, you may be offered a more expensive deal than the low rate loan you originally applied for.
Different types of personal loans
Secured loans are cheaper than unsecured loans but you run the risk of losing your home if you don’t keep up repayments. Secured loans are only offered to homeowners with equity in their property and mean the lender effectively takes a charge on your property. So don’t sign-up unless you’re 100 per cent sure that you will be able to meet your repayments – this type of loan is basically less risky for lenders but more risky for borrowers.
Personal loans can be expensive
If you are interested in making a large, one-time purchase with the option of a fixed or variable interest rate, a personal loan might be the right option for you. The maximum you can borrow will depend on your credit score and other factors. Loan repayment options will vary. Choose from weekly, bi-weekly, semi-monthly and monthly payments. Your payments will be a combination of principal and interest. Secured or unsecured: Secured loans are backed by your collateral either by property or investments, resulting in a higher borrowing amount and lower interest rate, whereas with unsecured loans they typically have a faster approval process.
Keep personal loan costs down
If you are certain that a personal loan is what you are looking for then make sure that you consider your options carefully. If you have a good credit rating you may find that a credit card or authorised overdraft actually works out cheaper than the personal loans on offer. Work out exactly how much you need to borrow and then work out what your loan repayments are going to be. Can you really afford a personal loan. If the answer is yes then shop around to find the cheapest loans on the market. It is essential that you read the terms and conditions of any loan which you are interested in carefully in order to ensure that there are no hidden fees or charges. Finally make sure that your loan repayments are made on time as a lot of companies out there will charge extra costs for late payments.
02 October 2012 16:00
Which Way to Pay
A secured loan can help you in many ways including supporting you financially however there are risks involved which can be devastating.
31 August 2011
Which Way to Pay
If you have been turned down for regular personal loans in the past and have a bad credit history, you may need to look to a bad credit loan if you need extra capital.