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What to Look out for in a Good Payday Loan

By DanielPosted in Payday LoansNo Comments

If you are choosing a payday loan. Then you will find that you have a lot of different lenders to pick between. This means that you will have a lot to do if you want to find the best one. There are different things too, that you might want to look out for. This is because you will find that there are some differences between the loans and you will need to choose the one that suits you the best.

Low Interest

The interest rate is what will be charged on the loan. It is important though to make sure that when you are comparing the interest rates that you are doing it on a like for like basis. You may find that lenders might give one of two possible interest rates. The APR is the annual percentage rate and the AER is the annual equivalent rate. The first is just the interest rate and you may find that there will be fees charged as well. The second is the rate taken the fees into consideration. Therefore, if you are going to compare interest rates the compare the AER and you will know that if you pick the lowest rate you will be paying the lowest amount of money.

Low Fees

If you do not manage to repay the loan when required, you will find that you will be charged fees. These can vary a lot between the different lenders and therefore it can be good to check how much they will be. You might think that it is not important because you will always repay on time. However, you never know what might happen and it is a good idea to just have an idea of what will be charged. They could be enormous differences between the different lenders. You might also find that once you know how much the cost will be, you will be much more motivated to make sure that you pay it off on time.

Good Customer Service

It can be really important to know that you will get good customer service if you need it. You will be able to find this out if you contact them before you take out the loan. It is a good idea to think about how easy they are to contact, if you can contact them in a way that is convenient for you, if they get back to you quickly and provide a satisfactory reply. It sounds a lot, but it is not really too much to ask as you would expect this from a good customer service department.

Good Reviews

You might want to have a look at reviews of the different loans to see what other people think of them. I can be useful to see what others like and dislike about the loans. It is worth making sure that you carefully read the reviews and think about whether the things that people are saying they like or do not like are important to you as there is no point in turning your back on a loan that someone dislikes if it is for a reason that is not important to you. You may also find that there is a possibility that the reviews might be biased, depending on how reliable the website is that you are reading them on. It might be worth asking people you know as well. They are less likely to be biased and they will also have your best interests at heart so will want to make sure that you only take out a loan if they think that it will suit you.

How to Ensure you can Repay Your Quick Loan

By DanielPosted in Quick LoansNo Comments

Whatever loan you take out, it is really important to make sure that you are able to repay it. It can be easy to forget about the payment when you are worrying so much about getting your hands on some money. All loans will have to be repaid at some point and they all differ in the way that they have to be repaid. It is a good idea to find out more about how the loans work and then you will be able to also work out what you need to do to make sure that you can afford it.

Find out How Much you Need to Pay and When

It is good to start by being completely clear on the loan repayments. With a quick loan, it is very likely that you will make just the one repayment and it will have to be made the next time you get paid. This means that it may be just a few weeks after you get the money from the loan. This will mean that you will need to find the money quickly. You will also normally have to repay the whole sum in one go and so you will have to pay the amount you borrowed plus costs and interest. Make sure that you are really clear on how much this will be in total. Ask the lender if you are not completely sure as they will be able to give you the figure easily but if you try to work it out, you could find that you will make a mistake and then not be prepared when you have to repay it and thought you needed less money than you actually do.

See if you Can Afford it

Once you have a figure, then you will be able to work out whether this is something that you will be able to afford. It is a good idea to take a look at some previous bank statements or if you have household accounts look at those. You will be able to see how much money you will expect to get paid and see if there is enough money there to make the repayment. It is also a good idea to check what other payments you will have to make on that day as well and that you have enough money to be able to pay those as well. You will also need to buy other things through the month and you will need to allow for all of those as well.

Check if you Can Spend Less

It can be a good idea to see whether there are any ways that you can spend less money. This will allow you to be able to have more money available for paying off the loan. So, think about whether you can compare prices on the things that you are buying and pay less for them. This is a good way to still be able to buy as many things but spend less money. It is also a good idea to think about whether you can buy less items. This can be harder as no one likes to go without things but there may be things that you do not really need which you could delay buying until you feel that you are on top of your finances again.

Check if you Can Earn More

It can also be good to look out for ways to earn more money if you can. Even if you can just sell a few things, do a bit of freelance or online work or a few extra hours in your job, it could make enough of a difference to help you manage better.

Will Repaying a Loan Help my Credit Score?

By DanielPosted in Credit ScoringNo Comments

A lot of people want to try out different things to improve their credit score. This can be a sensible idea as if you want to rent a home or borrow money, then you will find that the lender or potential landlord will take a look at your credit record to find out if they feel that they can trust you enough to take you on. Therefore, anything that you can do which will improve your credit record can make a significant difference to whether you might be able to get the loan or whatever you need that your credit record depends on.

What Might Improve my Credit Score?

Knowing what might help your credit score can be a bit hit and miss. This is because there is not a standardised credit score between different people that look at your credit report. They will just look at the details on your credit report and use that to think about whether they feel that they can trust you enough to take you on. Their ideas of what looks good and bad will vary. This means that it can be really hard and a bit of a gamble at times, to know whether doing certain things will help you. However, there are some things that you can try out which could be extremely useful and might benefit you. Repaying a loan could fall into this category.

Repaying a Loan

The most important thing to do when you have a loan is to make sure that you make all of the repayments on time. This sounds obvious but it is not always that easy. It is therefore really important to make sure that you prioritise repaying the loan, along with paying for other necessities, so that you do not miss payments. Any missed payments will generally be frowned upon but will also result in charges which will mean that you will end up paying more for the loan as well. You do not want to have to pay more like this.

It might be that you decide that repaying a loan early might help your credit record. If you have lots of loans, then eliminating one could look much better. It will show that you have less debt and that you will have more money available to pay for other things, such as rent or loan repayments. It might seem ironic that you are paying back a loan so that you can borrow more. But this about future planning. If you want a mortgage, for example, then repaying some of your other debt first will mean that you are more likely to be able to secure a mortgage and be able to borrow the amount of money that you want. Repaying debt will also have advantages for you as well as you will not need to worry about that debt any more. However, it is important to make sure that you do not have a large fee to pay for repaying the loan early. Some will have an ‘early redemption fee’ which will be a charge for paying the loan back early. This will not always be charged and the amount will vary. However, it is important to find out if there is one and how much it is before you decide to repay the loan. It may be worth paying it anyway, because it is less than the interest you would have to pay if you kept the loan, but it may not be and you will need to decide whether you think that it is worth repaying taking the costs into consideration.

How Much Should I Borrow on a Mortgage?

By DanielPosted in MortgagesNo Comments

When you are applying for a mortgage you may wonder how much to borrow or you might just borrow as much as you need or as much as you can. It is good idea though, to think about this carefully. This is because you need to get the amount right and it can make a big difference in the future too.

Consider the Cost of Property

Obviously, the cost of the property will determine how much you will need to borrow. There will be a maximum amount that a lender will be prepared to let you have as they will work this out according to your salary. However, you will also need to borrow enough to cover the cost of the property. It is good to have a look around to see what is available in the area that you are looking to buy and in the size that you want as well. You will then have an idea of how much you will need to borrow, but you will need account for a few other things. You might find that that type of property might go up in value by the time that you are able to buy one and so you may need to borrow a bit more. You also need to account for the fact that you will normally have to save up a deposit. This will be a percentage of the value of the home, so will not be able to borrow the full value but perhaps 90% or 95% and the rest will be covered by your deposit that you will need to save up.

Think About the Repayments

It is also extremely important to find out how much you are likely to have to repay each month. It is worth calculating how much you can afford and then matching this up. So, look at your bank statements and then see what money you have coming in and what you spend and you will be able to work out what will be left. If you pay rent at the moment then that is a chunk of money you could use for mortgage repayments so that will be a helpful start. It is important to make sure that you are happy that you will consistently be able to afford this amount of money as if you miss a payment or are late, there will charges which are expensive and no one wants to pay extra if they can avoid it.

Take the Cost of the Loan into Account

It is also worth thinking about the cost of the loan. Find out how much it will cost you – the lender should be able to tell you and think about whether you think that it offers good value for money. The cost will be dependent on the interest rate and this could change during the course of the loan, but you can still get a good idea of how much it might cost and therefore you can think about whether you feel that you want to pay that much money.

It is easy to just work out how much a lender will lend to you and apply to borrow that much money. However, it is important to also think about whether you will need that much for the property you want, whether you can afford to repay it and whether you are happy with the cost of the loan. The more you borrow, the dearer the loan and the higher the repayments. Therefore, you might want to consider borrowing less so that you have a cheaper and easier experience.

How to Pick the Best Lender of Quick Loans

By DanielPosted in Quick LoansNo Comments

Whatever type of loan you are taking out, it is a good idea to make sure that you spend some time looking through the different lenders to see which one is going to be the best for you. This is because they can vary quite a lot – probably a lot more than you think and in different areas than you might expect as well.

Cost

The cost of the quick payday loan is the main thing that most people will look for. It is wise to look at this, but many people do this incorrectly. They may just compare the interest rates and this can be a mistake because they may be charged fees as well that they will want to take into account too. It can be much more sensible to work out the total cost of the loan in monetary terms and then you will be able to compare each one equally. You will be able to find out the amount by asking the lender or you may find there is a calculator on their website whether you can work it out. It is a good idea to use one of these methods rather than guessing as it can be quite complex to actually work it out. At this point, it can be tempting to just take out the cheapest loan. You might think that will be the easiest option and will mean that you will pay the least. However, it is wise to find out how much they will charge you if you miss a repayment. This could be quite a significant amount of money and could vary quite a bit between different lenders. Even if you feel that there is no risk that you will not repay the loan in full, it is good to check this out. It could help you to choose between two lenders that are otherwise very closely matched or to motivate you to make sure that you do repay it.

Reputation

It can be important to some people that the lender has a good reputation. This means that others feel that they are a good lender and have therefore left good reviews or would recommend them. Some borrowers will want to ask others that they know about tehir experiences to find out what they feel about lenders they have used as well. This can be very useful as long as you get a good understanding of what made them form their decision i.e. what good and bad things happened which caused them to draw the conclusions that they did.

Time Established

It might be important to some people to use a lender that has been going for a while. They may prefer one that has more experience rather than one that is new, so that they have had time to get over any teething problems. However, other people might prefer newer lenders as they may feel that they will have to provide better value for money because they will want to give a good impression in order to encourage people to leave good reviews which will lead to more customers finding out about them.

Website

The website can be a useful way to find out a bit more about the lender. Not only will it provide information that will allow you to decide if you like the lender but it will also give you a feel for them just form the tone the text is written in and the information that they choose to provide.

Customer Service

It could be that customer service is something that is important – as many people might need to contact them at some point. So checking if they respond quickly and provide the information that you need and are helpful and polite can be very useful.