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What you need to know about Cheap Loans
Luckily for borrowers today, there is a constellation of options readily available online to obtain cheap loans. In the past, banks, credit unions, and other traditional financing institutions where the go-to places these financial products. Taking out cheap loans from these sources, however, was relatively hectic and difficult especially for people who do not possess the required credit history. Today, though, the advent of the internet has opened a floodgate of reputable private lenders like (website name) that provide borrowers not only with a cheap source of funding but also with a quick and convenient application process. So what are your options when it comes to cheap loans? Below are some of them.
Cheap Guarantor Loans
Guarantor loans are a great way to obtain a cheap loan especially if you don’t have a stellar credit rating and do not have an asset to offer as collateral. The loan, however, will require you to provide a person who will act as a guarantor on behalf of your loan. The guarantor can be a family or close friend and will agree to share equal responsibility for the loan. This means that if you default on your payment, the guarantor will be the one to make the repayments.
With a guarantor loan, you can take out a cheap loan that can range from £500 up to £15,000 although the amount you can borrow will depend largely on your affordability, the duration of the loan, and the quality of your guarantor. The better you are with these criteria, the cheaper and more flexible your loan terms will be. Normally, the representative rate of this type of loan can fall to 39.9% APR.
Cheap Logbook Loans
If you want to take out a cheap loan and you have your own vehicle to offer as collateral, logbook loans are options to consider. With this type of loan, you can borrow as little as £250 and as much £150,000 depending on the lender. Normally, lenders would allow you to borrow 50% of your vehicle’s trade-in value. Repayments can be as short as six months and as long as five years depending on your ability to pay. The Representative APR rates for logbook loans normally fall in 89.9% APR but can be cheaper depending on the lender and the terms of your agreement.
Cheap Door Step Loans
Among the cheap loans available in the market today, doorstep loans are perhaps the most convenient of them all. This is because, as its name suggests, you can take out a small amount of loan right in your very doorsteps from a local friendly agent. While the interest rates for doorstep loans are higher than the other two options mentioned earlier, the ease and convenience it brings will save you a lot of money in return. This is because the transfer of funds and the collection of payments will be conducted by the agent himself saving you a lot of time and money as a result.
Cheap Personal Loans
If you don’t have a guarantor and an asset to offer as security against your loan, cheap personal loans are worth considering. The loan can let you borrow as much as £25,000 from a reputable lender like (website name) and pay it back in a year or longer depending on your agreement. Some of the advantages in taking out cheap personal loans include:
- You can borrow amounts higher than credit cards.
- Loan repayments are fixed for every month allowing you to create a more accurate budget for repayment
- The duration of payment will depend entirely on you
- You can consolidate a number of debts into one personal loan, helping you reduce your monthly repayment costs.
How to get Loans Cheap
If you want to get loans cheap, whether it’s a guarantor loan or a personal loan, choosing the right lender that offers the best deals like (website name) is ideal. Getting the right lender will also help grant you the loan that is suited to your present circumstances. Here are the things that you can do to get hold of loans cheap:
- Never accept the first rate that is offered to you by your lender. Always try to negotiate for a better rate until you arrive with one that is the most cost-effective.
- Search the internet for lenders that offer the most budget-friendly APRs for their financial products. Going to a comparison site can help you a lot on this matter. Remember, however, that the kind of APR that will be attached to your loan will depend heavily on your credit rating. The better your credit rating, the lesser the APR would normally be.
- Request for a quote from the lender before you make your application. If they will need to perform a credit reference check, inquire if they can conduct a quotation search (which will not leave a mark on your credit record) rather than an application search (which will).
- Make sure that the lender is legit and reputable to avoid incurring hidden charges and fees that will add up in your payments.
Using a personal loan calculator will help you determine the repayments for your cheap loans the UK. The device, which you can access easily online or on a lender’s website, will calculate estimated monthly payments based on the balance, term, and interest rate you provide. The interest rates will differ from one lender to the next and also on your eligibility.
It is also important to note that if you want to gain access to cheap loans, your credit rating will help a lot. Having a good credit rating will normally score you lesser interest rates and better loan terms, overall. This is why it is important to make the proper repayments when you decide to take out a loan because it can really help you financially both in the long-run and short-run because of good credit standing.
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