Need To Know Basics For Personal Loans?

By on July 29, 2014

Interested in a personal loan, but unsure what it is and how it works? You are not alone. If you are starting out on your own and need some finance, the many types of loans can be daunting, but here is some basic information that will help.

What is a personal loan?

Amongst the types of loans that a bank can offer, a personal loan is one of the more difficult to get. A personal loan is commonly used to finance individual needs. A situation where one might need to acquire a personal loan would be to finance a car or redecorate a house. They can be a quick method to receive money. They are generally a smaller loan and differ greatly from a mortgage or a bridging loan which come with high interest rate and are generally for longer term lending.

What do I need to know?
Unlike a mortgage, where the property becomes collateral, personal loans are unsecured. This means that the lender cannot take a piece of your property should there be a default. However, they can notify a credit bureau and hire a collection agency to take personal property, equal to the debt owed. This is one of the reasons why a personal loan is more difficult to acquire. Banks will also ask you what the personal loan is for. This will affect the decision to give you loan, as well as your credit score.

Fixed amount
While this may be a daunting prospect, the bank will only take action if the borrower defaults on a payment.
Another aspect of the person loan is that it comes with a fixed amount, agreed upon between the borrower and the lender. This is beneficial as it prevents you from going over your limit. The interest also depends on your credit rating; having a good rating will mean you will pay less on the interest.

Fixed Repayment Period
Like the fixed amount, you can decide on a fixed repayment period with your bank. They can be paid back over a longer period, while this lowers the monthly repayment amount, it does however increase the interest. The payment periods work in months and can last from 12 to 60.

Be Prepared
Like with the variety of deals and offers, it is always best to shop around and find the best deal. Banks will also decide on giving you a loan based on your credit history, so ensure that you can maintain payments and any past debts have been cleared. If the bank can see that you have defaulted on payments in the past or have any outstanding, they may be hesitant to give you a loan.
Read the Small Print Before Signing
Once you’ve decided where to get a personal loan, it is highly advised to read the small print. As personal loans tend to be unsecured, ensure that you’ve read the terms and conditions and know exactly what the penalties are.
Finally, personal loans can come with PPI. You can decide whether to opt for this, but it does cover you in the event of sickness and unemployment which can have an effect on repayment. Click here for more information,

By Harry Price

Harry Price is enjoys spending quality-time with his 3 dogs, training for the most extreme marathons and volunteering at his local charities on his time off. He is a technology lover and unashamed texting addict

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7 Ways To Save Money

By on July 28, 2014

We have all felt anxious about money. It is half way through the month and your salary has gone towards bills and you are not sure how you will get through to the end of the month. You are not alone, everyone is in the same boat. Trying to budget can seem difficult and daunting, but there are ways it can be done and you will save money in the long run. One of the ways to do this is to ask yourself “Is what I’m about to buy really necessary?”. There is a technique called ‘The Thirty Day Wait’ where you wait 30 days and the urge to buy that item may go. This is a handy tip when it comes to anything expensive. There are other ways where you can save money. We have compiled a list that might help;

1. Clear Credit Card
Decide on a minimum (More than the suggested payment from the bank) payment and stick to it. Store it away and consider a low cost loan as alternative for emergencies. You cannot pay off a credit card fully if you need to keep using it.

2. Cut the Cost of Fuel Bills
Consider switching to a cheaper energy supplier. Doing so may save you around £300 a year. Installing a programmable thermostat can be scheduled to turn off your heating and electricity when you are not at home, saving you around 20% of your energy bills.

3. Consider a Pay as You Go Mobile
As contract phones take an estimated £50 from you every month, switching to Pay as You Go means that you are in control of how much you spend. Top up when you need to and you will still have the luxury of a mobile phone.

4. Buy Own Brand Goods
There is a myth that own brand goods are not as high quality as big brands. That is incorrect. They are very similar, only with slightly different packaging and they are cheaper and sometimes better. You’ll find that buying the store brand will make your shopping bill a lot cheaper.

5. DIY
Save some money and instead of hiring someone to do repairs around the house, do it yourself. The internet can provide you with all the information you need and you’ll teach yourself a new skill. For around £100, you can be taught at your local college. You’ll save yourself money on the call out charges.

6. Learn to Say No
This is important, especially when it comes to children. Saying no to frivolous and expensive items will definitely save you money. Learning to say ‘No’ to yourself and deciding if what you is really important can prevent you from purchasing overly expensive items.

7. Make Own Gifts
Christmas can be an incredibly expensive period. Like DIY, teach yourself a new skill and make gifts for your loved ones. You will be surprised how much money you can save by knitting a nice jumper for your family.

For more advice and information, click here.

By Harry Price

Harry Prices is a keen musician as well as writer. He plays 4 different instuments and is in local rock band.

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The Most Important Things to Check While Buying a Car

By on July 27, 2014

Do you want to buy a new car? Okay, buying a new car and determining for the payment of the new car involves several processes. You can take a low interest rate or you can also make a single big payment. Which one will you select? Or are you selecting both the options? You don’t require paying a large amount of money in one time.

First the most important thing is that you do not require a large amount of money for down payment in order to buy a car. This is one of the most common and persistent misconceptions. People believe in various reasons why down payment is required to buy a car. They think down payment is the only way. But there are several others option too.

So from where does this misconception come? And one of the possible answers is for buying a sizable down payment is required.

However, down payment is not actually required while buying a car. It is not at all an important option. Many car dealerships have several options and they access to financial plans. Even the credit issues have luck when it is about auto financing plans. In many cases you can purchase a car with no money.

It is obviously up to you whether you want to make a down payment or not. On the other hand you have a better option like qualifying for a low interest rate. This is a fantastic plan. If your credit score is good then this is a side benefit which you will definitely enjoy.

Other factors that access your interest rates are:

  • From where is the money coming?

Your rate is different from credit union or bank than it will be from a private lender.

  • What kind of car do you want to buy?

Interest rates always vary from used cars to new cars.

  • What is the amount of your loan?

Naturally longer loans calculate high interest rates.

Advice for People with Credit Issues

What will happen when your credit score is bad? One of the best ways to build a credit score is that you own a car and consistently make the payments on that that car. It is a better option.

You can also use the car buying process even if you do not have the best credit score in your area. It will not only help you to own a used car or a new car but also to rebuild your poor credit score. If you can’t calculate your credit score then you will face problem in your financial life. By doing this someday you will be able to qualify for the most attractive less interest rate. Of course this will help you to save money on each and every monthly payment.

Always keep one thing in mind that although if you do not qualify for a low interest rate or if you do not have enough money for the down payment, you can still get the car of our choice. You can do this by talking to your car dealership more and explore various other options that will help you to purchase the car. As interacting more withpeople gives you newer ideas of buying.

Should You Buy A Used Car Or A New Car?

Whether you buy a used car or a new car, both come with their own sets of pros and cons. This will depend entirely on your purpose of buying, budget and preferences. In either case, you might need to acquire Canada Car Loan. Look for reliable agencies to seek your loans from.

 

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