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How to Get an Amazing Deal on a Personal Loan

Most people don’t really take the time to get the best possible deal on a personal loan, and it ends up costing them. If you want to increase your chances of paying less on a new loan, it is important that you get the right information. The details in this article can assist you in getting the money you need without paying more than necessary. Following a few simple tips can do wonders for your finances.

Look at Your Credit Rating

Before you start applying for a loan, you will need to check your credit rating. It is possible to get a personal loan with bad credit, but you should still know what your score is. If you have a very low credit rating, you can expect to get a higher rate. Managing your expectations is a very important part of getting a loan. Take as much time as necessary to look through your credit report thoroughly before applying. You should also make a point of looking at your credit report for all three of the major credit referencing agencies.

Don’t Assume You Will Get the Headline Rate

A lot of lenders like to advertise low rates for their loans, but they are only required by law to give them to 51% of approved applicants. This means that you could very well get a lower rate than is advertised. It is a good idea to get quotes from numerous lenders so that you can get the lowest possible rate. You should avoid getting too many quotes within a very short time span though, as it can negatively impact your credit. Getting just three or four quotes can really help you to get the loan you need while saving a decent amount of money.

Choose a Lender that is Reputable

You should focus on choosing a lender that is highly reputable and trustworthy. There are many different lenders to choose from, making it all the more important to research your options. While you can get a loan from a bank, there are also private lenders to consider. A lot of people in the UK are going through private lenders because of how much more flexible they are. These lenders also make it much easier to borrow smaller amounts of money faster.

The thousands of online-based private lenders that exist can help you get the money you need with the least amount of effort. It is important that you at least look into these options before making a final decision. Private lenders aren’t held to the same regulations as banks, but they can be just as trustworthy. Borrowing from a private lender could actually end up saving you a lot of money and frustration.

Get a Payday Loan

If you only need to borrow a small sum of money and need cash fast, a payday loan is a great option to consider. These short-term loans have a payback period of around two weeks. You can borrow up to 2,000 pounds, depending on the lender and your credentials. The more money you make, the higher your borrowing limit will be. Lots of people who need to pay for a sudden and important expense turn to payday loans because of how helpful they can be.

Opt for a Fixed Rate

It is probably a good idea to opt for a fixed interest rate on your loan, just because it will stay the same. Some people get tempted by variable rates, but they are subject to change. There is no guarantee that you will pay less with a variable rate, and often times they end up increasing. Most personal loans have fixed rates these days, but there are some lenders that offer variable rates.

Don’t Juggle Multiple Loans

You shouldn’t try to juggle numerous personal loans at once, because it can get very tricky. Instead you should focus on paying off one loan at a time. This will help you avoid defaulting on any loans, which can really hurt your credit. A lot of lenders will be very hesitant to give you any money if you have another active loan you have yet to pay off in full.

Read the Contract

Never close a loan deal with any lender until you have taken all the time necessary to read over the details of the contract. Your loan contract will spell out all of the terms so you know exactly what they are. These details will include when the money must be paid back, the full amount, and fees you are required to pay at the end. When you take the time to look through the contract, you can confirm that everything is as it should be. Don’t hesitate to ask the lender if you have any questions about the loan.

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9 Common Reasons Your Credit Score Changes

The fact is that your credit score is changing all the time for a number of reasons, and it’s a good idea to know what they are. Most people’s scores don’t change drastically on a regular basis, but there is some fluctuation. Since your credit affects your ability to get a loan and much more, it is a good idea to learn all you can about it. Improving your score means increasing your financial opportunities in life. In this article you will learn about why your credit changes the way it does.

  1. Old Items Falling Off Your Credit Report

Sometimes your credit score will go up a little bit as old negative items like bankruptcies or late payments begin falling off. It usually takes several years before this happens, but it can help your score considerably over time. If you have noticed your credit rating increase, this could be the reason.

  • Changes with your Credit Account Balances

The balance of your credit card is different each month, so it only makes sense that your credit score would be affected. If you are really good about taking care of your balance on time, your score will go up. If you are constantly late on your payments, it will go down. As the balance of your credit accounts change, so does your score.

  • You Bought Something Expensive

Another common reason why your credit score changes is because of expensive purchases. Part of the formula that determines your rating is how much the available credit you have is actually used. The more of your credit you use, the more likely you are to see a slight drop in your credit. This change usually isn’t huge, but it can be noticeable. You can offset this change in your credit by taking care of the balance on your account quickly. The sooner you pay it off, the faster you can correct this change.

  • An Unpaid Bill Went into Collection

If you do not pay a certain bill, it gets sent to collection at some point. This can take a while, but it does happen eventually. This can have a very significant negative impact on your overall credit score. Once a collection agency receives the balance, you will notice a change in your score. This is why it so important that you make a point to pay off your bills. If you are having difficulties doing this, talk to your creditor to see if you can work out a payment plan. It is a much better option than letting it go to a credit agency.

  • You Submitted a New Credit Application

A person’s credit score can also change if they have recently filled out an application for credit. Whether it is for a credit card or a loan, this can have a small impact on your overall score. This is why you should not submit a lot of credit applications within a short period of time. Every time a credit check is run on you, your score can go down a little bit.

  • Your Credit Limit Was Lowered

If your credit limit was recently lowered for whatever reason, your score could suffer as a result. It is never a good idea to maintain a balance on a card, especially when it has a low limit. The less allotted credit you use, the easier it will be to maintain a healthy credit rating.

  • A Credit Card of Yours Was Cancelled

Those who cancel a credit card because it has been stolen could see a small drop in their credit score. The same goes if the creditor closes a credit account of yours. While it might not seem fair, that is just the way it is.

  • Late Payments

Even a single late payment can mean seeing a decent drop in your credit score. This is why you always need to be good about paying your bills on time every time. You should make a point of setting up automatic payment for as many of your accounts as possible. This way you won’t forget to pay any of your bills. Being even just a day late on one of your bills could mean suffering negative credit consequences.

  • How do I Maintain a Healthy Credit Score?

There are numerous ways that you can maintain a healthy credit score for the long term. A lot of it is just making sure that you pay your bills on time. Those who put off taking care of the balance on their credit cards usually regret it in a very big way later on. If you don’t want to get in a spiraling pit of debt, it is important that you keep these things in mind. You should also check your credit report once each year to make sure it is accurate.

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