Suggestions To Help You Get A Better Personal Loan
Suggestions To Help You Get A Better Personal Loan
If you want to get the best personal loan it pays to shop around, even if you do not have a very good credit rating. Even in the current economic climate it is still possible to get a decent deal and it is important to be wary of what the right deal consists of. Tips and suggestions to have the best loans can help you with that.
The first thing you should consider is your credit rating. If you are not aware of your credit rating then finding out will give you a better idea of what loans are available to you. A lot of companies and websites offer this service for free. In the event of any mistakes you can often correct them and improve your rating, giving you access to better loans.
When in financial difficulties a lot of people may choose to use a credit card instead of getting an unsecured personal loan. While this may seem a better option in the short term it can take longer to pay off. An unsecured personal loan with a fixed interest rate is the ideal product if you can get it. This is because you can set aside money each month and pay it off.
There have been some cases of people being sold PPI alongside their loan without being aware of it. This will increase the total cost of the loan and in some cases may not be suitable for your needs. A good example of this is if you are self employed. If a lender says you are fully covered asked specifically if this refers to PPI. If you want to take the insurance out it may also be cheaper to get it with a separate lender. Conversely, some lenders are more likely to lend to you if you take out PPI so bear this in mind with the total cost.
Another thing to check carefully is how it can affect you if you overpay monthly repayments or pay the full loan off entirely. Some companies may charge you a penalty for this so you should ask before signing up for the loan. It is worth noting that some companies do not charge a penalty for this. If you are in any doubt talk to your lender.
It is also a good idea not to make too many loan applications. In the event of being declined this can negatively affect your credit rating. This can then alert the attention of secured loan companies who will offer you loans with a higher variable interest rate.
In short the best way to get the best personal loan deal is to look beyond the interest rate and to look at the total cost of the loan. A three year loan with a higher repayment is better value than a five year loan with a lower monthly repayment. As well as Tips and suggestions to have the best loans you should also discuss your personal circumstances with an independent financial advisor.
