Personal Loans And Apr Is That All That Matters

Personal Loans And Apr Is That All That Matters



Personal Loans and APR – is​ that all that matters?
The advice from financial advisers has always been,​ if​ you​ are thinking about taking on​ new loan or​ any type of​ credit agreement,​ shop around .​
These days,​ there is​ such intense competition among lenders to​ get your business,​ that special offers and extremely low interest rate loans are always on​ the​ market somewhere,​ if​ you​ are willing to​ search them out .​
It is​ also worth checking out less well known lenders and not just the​ high street banks,​ as​ some of​ the​ best deals around will be from these lenders .​
The government has sought to​ facilitate this by providing a​ standard benchmark figure that can be used to​ price loans from different lenders .​
This figure is​ the​ APR,​ or​ annual percentage rate for interest on​ the​ loan .​
It is​ calculated in​ the​ same way by all lenders and should give you​ an​ accurate and fair view of​ the​ real cost of​ any credit you​ take on​ .​
So for instance,​ if​ a​ credit card is​ tempted to​ tell you​ that they only charge two per cent interest,​ they will have to​ tell you​ that this is​ their monthly rate,​ and the​ APR is​ in​ fact,​ something more like twenty eight per cent .​
However,​ the​ APR is​ not the​ only thing that you​ will have to​ check out when you​ are shopping around for credit .​
There are many other very important factors that will also effect which credit offers are the​ best deals .​
For example,​ as​ well as​ interest,​ it​ is​ possible that a​ loan will include other fees that do not go into calculating the​ APR .​
Some loans,​ especially mortgages,​ incorporate arrangement fees or​ set up fees that you​ will also have to​ take into account .​
Many other loans will have early termination charges that are added to​ the​ bill if​ you​ wish to​ repay the​ loan early .​
Flexibility is​ also a​ consideration and you​ may want to​ check if​ over payments,​ or​ repayment holidays are permitted on​ your loan .​
This means that you​ can put a​ little extra against the​ loan when you​ come into extra money,​ or​ take a​ break from payments if​ you​ lose your job for example .​
This is​ very important in​ long term loans such as​ mortgages .​
Some credit cards will also offer you​ low APRs but then charge very high penalties if​ you​ miss a​ payment .​
Others will offer you​ low APRs but only for an​ introductory period,​ after which the​ APR jumps to​ a​ higher level .​
You should be aware of​ these types of​ offers .​
Even zero per cent balance transfers can be subject to​ a​ balance transfer fee,​ that in​ effect means you​ are paying for the​ balance transfer,​ and it​ makes little difference to​ you​ whether it​ is​ as​ interest or​ as​ a​ fee.




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