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Finding Reasonably Good Loans

There is no shortage of lenders who would be more than happy to offer you a loan. Provided, of course, that you have met their legibility requirements. There are so many of them around these days that choosing where to go to secure a good loan can get confusing sometimes. Here are tips on how to locate the best lender with the best possible loan offer.

Shop around

It helps to look around and get to know the APRs that lenders are offering. The Annual Percentage Rate tells you of the true costs involved when taking out a loan including the interest rates, the loan terms, other loan fees and charges and even the due date for repayments every month. Just remember that advertised APRs may not usually be the one offered to you. Depending on your credit score and other circumstances, the actual loan APR may be higher or lower.

Know your eligibility first

You wouldn’t want to just go ahead and start sending in one loan application after another. Loan applications are notorious for having a negative effect on your credit score due to the hard checks that lenders perform. This can even lower your chances to get approved for a loan as a result. When lenders see that you have been applying for so many loans in such a short period, they would likely think that you are in desperate need of cash or that you’re trying to borrow money you can’t afford to pay. So, before sending out a loan application, find out if you qualify first.

See if they allow early repayments

There may come a point when you may be earning enough money to get your loan paid off earlier than its actual term. Some lenders do not allow this but there are some that do in exchange for some early repayment fees. Find out if your lender of choice offers this and see if the fees are reasonable enough.

Check your credit score

Your credit rating lays an integral part in you getting a loan and how much the rates will be. This is why before you start applying, always review your credit history first and ensure that all the entries are accurate. If you can, it pays to fix your credit score first before you will start applying for a loan to get a much better chance to get approved or funding. 

Where to Find Better Loan Rates

If you have a good credit, getting a loan would be easy enough for you to do. Lenders would be happy to assist you since just one look on your credit history will tell them that you have been responsible in managing your debts in the past. Lenders will only be happy to offer you several options since they can tell that you are going to be a reliable borrower. Needless to say, a number of lending providers will be happy to open their doors for you.

Banks

If you’re interested in a personal loan, banks will be able to offer £500 to £25,000 over a period of one to seven years. Most banks would be willing to offer an installment loan where security is not going to be needed. Some banks might require you to own a home in order to get even lower interest rates, but if you’re happy with the current rates that they will provide you, then a security is most definitely not necessary.

Direct lenders

It is always advised that you will consider dealing with direct lenders instead of referring to brokers. It is always best to deal directly with the people providing the loan as this allows you to ask them questions face to face about what it is you are getting into. This also gets rid of the need for a middleman, which could mean more savings for you.

Credit unions

If you want to get loans with even lower interest rates, credit unions are a place to go. These organisations are often made up of people who belong to the same community and are known for the low interest charges on their loans. They do require you to be a member before you can take advantage of their services so you might need to work on that first.

When getting a good loan, it is not enough that you look for a good lender. You’ll find that your credit score will matter immensely too. But if you have kept a good one over the years, then getting approved for a competitive loan deal should be easy.