Despite this the vast majority of owners during the global economic crisis have focused on the difficulties faced by borrowers in the purchase of mortgages, which has often been overlooked is how difficult it is to get smaller loans or credits .
Interest rates of credits have been increased and cheaper proposals are available only to those with the best credit histories.
With lenders tightening their criteria is much more complicated now being accepted for a loan, yet it can find there hidden fees that can raise the amount to be refunded.
Here we look at the main factors to consider when shopping for a loan account.
With or without a guarantee?
The difference between a “secured loan” (such as mortgage loans) and an “unsecured loan” (also known as a “personal loan”) is that with a secured loan the lender is providing some form of security before the debt Usually home. This means that if it is unable to meet payments, the lender can repossess your home and finish.
Because of this added risk, it is fair to say that an unsecured loan is always a better option than a secured loan. However, secured loans often have the most beneficial rates and providers are more likely to take a risk on a client with a less than perfect credit score we have some form of equity to get your money back.
This runs make them easier to reach. Here there are some issues we need us when choosing the option of loan:
- How much they want to borrow and for how long?
- Do you own a property?
- Are you sure you can make the payments?
- What is your credit history?
- Is it likely to repay the loan early?
We present you opt for a secured loan your primary concern is the interest rate, you must choose the lowest. However, before requesting proposals there is some important issues to be aware of:
Fixed rate or variable: Most secured loans have variable rates which means that the lender can effectively increase your payments when you choose. This could affect your projection to scrutinize fixed payments.
Are there early repayment charges?
Hundreds of secured loans often penalize those who can compensate by surrender charges. In any case, we present borrow large amounts, be careful as there is no upper limit and penalties can be substantial.
In another village, with unsecured loans there is less to fall into the traps, the rates are always fixed, and if early repayment charges apply are limited to a top of many months of interest. Consequently, the main concern for people requisitan a personal loan should be the interest rate.
However, the best interest rates on loans are only available to those with excellent credit scores.
What if does not belong to a good credit score?
In consequence, interest rates will be most important, whether secured or unsecured. We present your credit score is poor, you should see a way to improve it, how to deal with the payment of bills and credit cards on time, the establishment of a fixed address, among other features.
Is there anything else to consider?
Other hidden charges: Silver providers often impose costs of disposal or management during the implementation of the loan.
Payment by direct debit: To ensure that fertilizers do not miss, ask lenders present you can pay monthly by direct debit bank.
Finally, before applying for credit must wonder we really need to borrow the money at all. Could I get some financial problems with a narrower projection?
Maybe I could even ask for money lent to a friend or family member who does not charge interest.