Which Loan To Use

Which Loan To Use



Which Loan to​ Use?
Need to​ borrow some money then a​ personal loan maybe for you,​ most people take a​ personal loan for home improvements,​ to​ purchase a​ car and holidays .​
Loans are very simple you​ borrow a​ sum of​ money and pay it​ back over a​ period of​ time say anywhere between 6months to​ 10 years .​
Interest rates on​ a​ personal loan are usually at​ a​ fixed rate for the​ lifetime of​ the​ loan,​ this is​ great,​ as​ you​ know your repayment every month .​
In the​ past most people went to​ their bank for loans,​ but know the​ competition is​ really heating up .​
The Internet offers some great deals; also have a​ look in​ the​ newspapers and on​ TV .​
There has never been a​ better time to​ pick up a​ personal loan,​ as​ all the​ lenders are looking for your business.
There are two different types of​ loans!
Secured – this loan is​ usually secured by your home which means if​ you​ fail to​ make the​ repayments,​ you​ could lose your home .​
On the​ up side secured loans do offer cheaper interest rates,​ if​ you​ decide to​ take a​ secured loan please make doubly sure you​ can afford your repayments .​
Unsecured – this loan means your home is​ safe if​ you​ fail to​ pay back your loan,​ you’ll find it​ hard to​ get any more credit,​ as​ your credit rating would be poor .​
Interest rates are usually higher with an​ unsecured loan as​ the​ lender is​ taking a​ higher risk in​ getting their money back .​
Loans are much like mortgages it’s the​ interest that you’re paying back at​ the​ start,​ the​ loan is​ paid further down the​ line .​
One thing to​ watch out for is​ if​ you​ pay off your loan earlier than agreed you​ could face penalties .​
You could be asked to​ pay back the​ interest for two or​ three months,​ not all companies charge this so best check.
Most loan companies will offer you​ PPI (payment protection insurance) they will tell you​ that you​ need it,​ and that if​ you’re off sick,​ have an​ accident or​ become unemployed they will help to​ pay your repayments .​
This is​ not always the​ case so please check with your lender as​ you​ could end up costing yourself a​ lot of​ money,​ and get nothing back if​ the​ unthinkable happened.
So secured or​ unsecured personal loans which one is​ best! the​ two of​ them really as​ it​ all depends on​ your circumstances .​
Secured – you​ put your home at​ risk if​ you​ fail to​ keep up the​ repayments,​ but the​ interest rates are much cheaper .​
Unsecured – you’ll get a​ bad credit rating if​ you​ fail to​ keep up the​ repayments,​ but the​ interest rates are much higher.
One other thing to​ remember with regard to​ a​ secured loan is​ that it​ is​ as​ it​ says,​ secured,​ and if​ you​ do not keep up repayments you​ could lose your home .​
Your home is​ normally used as​ collateral against a​ secured home.




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