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So you are interested in getting a loan? There are hundreds of companies in the UK offering loans. From time to time we all need help with our finances and a loan can often help us afford things that we need now. I have written this document to assist you in making the right choices.
Firstly, can you afford a loan? Work out how much you want to borrow and then decide what you can afford to comfortably pay back each month. Many loan providers will attempt to 'up sell' to you; getting you to take more money so they get more commission. So, decide before you make that call or email or fill in that form exactly how much money you want to borrow.
There are basically two main types of loans; secured and unsecured. Unsecured loans are often for smaller amounts, say less than £10,000 and suit people who have better credit ratings. Secured loans tend to be larger amounts say from £15,000 to £100,000 and your credit rating will not be so important. Well, it will be important, the worse your credit the more you will pay for your loan. The lender will expect more as their risk is greater. Obviously the nature of a secured loan is that it is secured; this is nearly always on your house (I say nearly as I have known secured loans on boats before). So if you don't pay your loan then the lender can have the guarantee of your property to ensure they get their money back.
So we have done our homework and we know how much we want, over how long and what type of loan we need. Now it's time to select the lucky lender who gets our business. Okay, the loans business in the UK is competitive; that means people will fight for your business. The upside is you can get some great deals (if you know what you're looking for) but the downside is there can be some fluff to fight through to find them. In my opinion, forget free DVD players, iPods and trips away to Bognor for putting your loan their way. That's just fluff. What you want (what you really, really want) is a reputable Company, with good service and of course a good rate to suit your circumstances. So say no to the furry dice and yes to the great loan rate, thanks.
So like any business, once you have made your purchase some companies will want to sell you more stuff. With loans that tends to be Payment Protection Insurance, or PPI as it's known in Loanworld. This insurance is to pay for your loan if you are unable to do so; such as sickness or accidents. Would I recommend it...? Well, do your homework! As far as insurance products go in the UK it has one of the worst payout ratios; so check the small print and consider it first. Never allow these things to be forced upon you.
You see how this article about loans is easy to understand, written in easy to comprehend language and is in a type face that you can read without binoculars; well that's what you are looking for when your documents arrive. We understand that Loan companies have financial responsibility to ensure the details are correct but it's your responsibility to read them. Take 5 minutes from your busy life and READ THE SMALL PRINT. I'm not suggesting that there are any underhand clauses but you really should just read through them. If you are not sure, then ask them. It would be a good test of the company who you are lending from whether they are helpful or not.
So in your hunt for a loan you will look at various websites and adverts. Some will be the lender of the money themselves and some will be brokers or middle men whose job is to do the searching for you. Well this site you are on is run by a middle woman; that means my job (there is more than me alone, don't worry) is to search the market for a loan to suit you. We do that using technology that attempts to match you, the customer, with a lender that best suits your needs.
Finally, good luck in getting your money, don't spend it all at once (that's a joke; spend it how you like), and above all do your homework...
Let me do it for you and click here and fill in my fantastic "search the market for the loan that suits you for free tool", and happy hunting campers.
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