Loan Articles

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  • Deciding on a Loan

    What is the one thing that all financial advisors tell their clients before committing to any financial agreement? It is the most basic rule of all commerce; do you homework and shop around. While it may not be the most fun pass time in the world, getting familiar with the different lenders in the market, and the loans they offer, is vital when you are shopping for a loan.


  • Never try to fib your way into a loan

    There are certain times in life when you should not lie: On your resume, when visiting the doctor, or when applying for a loan. Yet, according to one study, nearly one third of people applying for a loan have lied about some aspect of their history. Why? A need for a loan combined with fear of not getting it if the truth be told. Other reasons cited in the study included a desire for privacy or wanting to avoid embarrassment. Nowadays, loan companies have been keen to implement a new loan data sharing service that will catch fraudsters before they are accepted.


  • Online Loans - How Popular and Safe Are They

    With the development in technology allowing for safer online transactions coupled with high-speed Internet connections, many people are conducting loan research from the comfort of home. The use of online loan applications is becoming more and more popular. One study indicates that online purchases of financial services will continue to increase in 2005; this follows a rise of more than 208 percent over the past year or so. Changes in legislation also contribute to the rise in online loan applications. Consumers are now able to apply online without having to return signed paper copies; this small bit of convenience could have a big impact on online financial services. (Hard copy letters will still be sent if any charges for missed payments are incurred or if the loan is canceled.) This convenience also means that consumers can shop around more extensively, which saves both lenders and purchasers time and resources.


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  • Switching loans can save money

    It is all too easy for consumers to become complacent when it comes to finances, and loans are one example of this. Many people remain with the same lender or the same loan set-up simply because it's easy and familiar. Yet studies show that consumers could save a substantial amount of money by changing their loan structures.


  • Define: Early Redemption Penalties

    More and more attention is being paid to APRs when people are shopping around for loans. This is not surprising as the very reason the APR was introduced was provide a standard figure that customers could use to compare the prices of loans without getting our their calculators and doing the math themselves. However, there are many other potential charges when taking on credit and it would be a mistake to ignore these and put all your concentration the single APR figure.


  • Payment Protection Insurance: The True Cost

    If you're taking out a sizeable loan, the idea of payment protection may sound like a good idea. Programs such as these protect buyers in the event that they are unable to make payments on the loan due to events such as layoffs or medical emergencies. All types of loans offer this type of protection, from unsecured credit cards to secured loans such as mortgages. But what's the real cost of this protection, and is it worth it? An estimated one billion pounds are spent on buyer protection insurance each year.


  • Do You Need Credit Insurance

    Almost every time you apply for a loan or other form of credit, you are asked if you would like to purchase credit insurance. It my even be automatically added to your contract without you noticing. This is an insurance policy that guards you against the risk that you will not be able to meet your repayments.


  • The High Cost Of Doorstep Credit

    There are many people who find it difficult to get credit. People with a poor credit history, with defaults, arrears and County Court Judgements (CCJs) may find that credit card companies and banks prefer to avoid them. That's why it can seem very attractive when someone is willing to overlook their financial history and give them the loan they desperately need. There are many lending firms that operate from the high street who will visit your home to discuss borrowing requirements. Many of their representatives walk around with large sums of cash and will offer an on-the-spot loan for the amount you require. They will also tell you what the interest on the loan will be and negotiate a payment schedule. This is often weekly. The minute you accept the money, you owe both the money and the interest.


  • Is Your Loan Illegal

    There are many credit options available to potential borrowers. Loans, credit cards, store cards and more are all available to borrowers with the right credit score. But what if you don't have the right credit score? If your credit profile features missed or late payments (defaults or arrears) and County Court Judgements (CCJs) you may find it difficult to get a loan. An organisation that promises a loan, whatever your circumstances, might seem like the answer to financial worries. Be careful, though, you could become the victim of an illegal lender or loan shark. Here are some signs to look out for.


  • The Department of Trade and Industry's Loan Rules

    As part of the Consumer Credit Bill the Department of Trade and Industry is changing it rules regarding loans. The changes are designed to make loan agreements clearer and easier to understand for consumers. The information should make shopping around for loans a lot easier. Information such as the total amount repayable and the annual percentage rate must be clearly displayed. This makes comparing different options a lot easier, for example, comparing low repayments over a long time, versus higher repayments over a shorter period.


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