Competition is fierce between lenders in the UK Loan market. Each lender is trying to beat their competitors by offering the best possible deal to potential customers and this often leaves any individual looking to take out a personal loan is in a tough conundrum.
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Hopefully, with these few tips, you will be able to identify the best offer that suits your requirements.
1. Look At Different Alternatives
You might be tempted to choose the first offer you come across simply because it seems too good to be true. However, the chances are that there is another financial institution around the corner offering something which is a little better.
For this reason, it’s always a sensible idea to shop around and compare as many different offers as possible. For instance, you can compare different interest rates, defaulting charges or different conditions before making a decision.
Find out more about how to find the best personal loan without damaging your Credit Rating by clicking here.
2. Eligibility Status
Are you eligible for the loan that you are applying for? Whilst it sounds like a simple enough question, you don’t want to waste your time going through the application process, only to find out that if you had read the fine print, you would have known that you were ineligible from the start!
Not only can this waste of time be very frustrating, but each loan application which is declined can also leave a negative imprint on your Credit file.
For more information about some of the changes coming to UK credit files, please click here.
3. Discounts For Early Repayment
However unlikely it may seem, the possibility exists that your financial circumstances may change to a point where you are able to repay your loan earlier than expected. However, some lenders actually charge extra in order to do this!
On the flip side of this, there are a few lenders who award lower interest rates or other favourable conditions to people who choose to pay off their debts early.
Either way, the sensible option is to check before signing any agreement contract rather than incurring charges for early repayments.
To find out more about reducing the cost of personal loans, please click here.
4. Loan Insurance Cover
Taking a close look at loan insurance options is often a good idea. These policies are designed to protect you if you don’t have enough cash to pay your monthly loan repayment instalments.
If you unexpectedly lose your job or illness prevents you from working, the assistance offered by this type of insurance can prove to be invaluable.
For more information about loan insurance, please check out the following Investpedia article – http://www.investopedia.com/articles/pf/08/loan-protection-insurance.asp
If you have had a bad experience with loan protection previously, check out the following video for advice and information:
5. Assess Your Credit Rating
Before submitting any loan application, it is absolutely essential to assess your credit rating. Many lenders now only award loans to those with good credit ratings. If your credit rating is poor, there is every chance that you will find that your options are limited.
Therefore, visit your bank and seek the services of a financial advisor to help you determine your current credit rating.
Do you know how to check your credit rating? Click here for all the information that you need.
In Summary
If after assessing your credit rating and everything mentioned above you don’t qualify for a personal loan, you can check into other forms of loans such as credit cards. However, you need to make the credit card payments in time to make sure your credit rating remains stable in case you reapply for a personal loan in the future.
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