Obtain A Loan

Although many of us would not like to admit it, the fact of the matter is that there will inevitably be times I our lives when a loan is required to make ends meet. These programmes can sometimes be used to purchase a new car or home while they are also useful in the event that you need to address existing debt. Let's take a look at some of the sure-fire methods which will help you to obtain the best payment plan. We will also examine a few common pitfalls to avoid.

Know Your Limitations

The first step towards securing a loan involves a good deal to honesty. Let's assume for a moment that you speak to your bank for a loan so that you will be able to purchase a new car. Will you be able to meet the monthly payment requirements? Can you also adjust your budget to take into account any interest associated with the plan? This is critical, for falling behind on even a single payment can lead to dire consequences in terms of credit ratings further afield. If there are any doubts that you might not be able to meet the stipulations of the provider, it is best to take a step back and reconsider your options.

Fixed or Variable Interest Rates?

Let's take the guesswork out of the equation in terms of interest rates. There are two main types which will be included within any loan package. These are:

  • Fixed rates
  • Variable rates

Fixed interest rates signify that you will know exactly how much you are paying each month (balance and interest). The downside to this option is that if the Bank of England lowers its benchmark interest rates, you will be paying more than the initial amount of the money borrowed. Variable rates will obviously change based upon the BoE. The issue here is that if they rise substantially, you are once again forced to pay more than the loan is actually worth.

The Reputation of the Provider

Loans are a very real business and much like any business, not all firms are created equally. Be sure to take a look at the past history of the company. Have there been any complaints filed and if so, what did they involve? Can the firm provide evidence that they are properly certified through the FCA? Finally, are they willing to supply previous testimonials from real clients? All of these factors tend to be the hallmarks of a trustworthy organisation.

Terms and Conditions

Always take into account the terms and conditions attached to any loan agreement. Be on the particular lookout for clauses involving late payments. Most providers are “less than forgiving” if you happen to miss a payment. Should this occur more than once, your details could very well be forwarded to a collections agency. Each organisation will be associated with its own set of contractual obligations, so read these through carefully. If a representative is unwilling or unable to explain them in greater detail, it might be a good idea to look elsewhere.

Please keep these suggestions in mind, as they will be able to save you a good deal of time and energy in the long run. Above all, always ask questions if you doubt any of the claims that a provider makes.

Top Loan Providers in 2017

Unless you are independently wealthy, the fact of the matter is that you will need a bit of financial help if you are looking to make a substantial purchase. From cars and homes to an expensive piece of jewellery and even an al-inclusive holiday, there is no doubt that loans can come in extremely handy. Still, they are fraught with terms and conditions. What is even more frustrating is the fact that each financial institution claims to be the best in the business. How are you to separate the flotsam and jetsam of myth versus reality? This can be a tough question to address, so we have made things simpler by putting together a list of the top loan providers in 2017. Please make it a point to examine each one in closer detail when you have the chance.

  • Sainsbury's Bank
  • M&S Bank
  • RateSetter
  • Zopa Personal Loans
  • Tesco Bank Loans
  • Clydesdale Bank Loans
  • Yorkshire Bank Loans
  • Hitachi Personal Finance
  • Santander
  • HSBC Loans

Be sure to ask about their terms and conditions before committing to any specific provider. There is no doubt that a bit of research can go a very long way!

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