Monday, January 20, 2014

50 Pound Loans - Dos and Don'ts For Picking a 50 Pound Loan Deal

If you're looking for a 50 pound loans to consolidate your debts or to make a purchase, there will probably be a number of options for you to choose from. Read through the following dos and don'ts for choosing a 50 pound loans deal to make sure you find the best deal for your circumstances.
DO: Be realistic about how long it might take you to repay your loan.
The amount of time you allow for repayment of your £1000 loan will influence the type of deals available to you and which will be easiest on your purse strings. As you want the overall cost of the loan to be as little as possible, aim for the cheapest £1000 loan you can find which lets you pay off the capital in a reasonable time period for you. If you are able to pay off your loan very quickly, the overall cost is likely to be a lot less.
DON'T: Look only at the APR - consider additional costs
The APR of a loan is the annual percentage rate, or the amount of interest you will pay on the loan over the course of one year. This is a good place to start when comparing £1000 loan deals but you need to look into other costs and variations as well. These can include delivery fees, payment protection insurance and early settlement fees, all of which can have an impact on the overall cost of the loan.
DO: Beware of payment holidays
Many lenders will allow a payment holiday of one or more months at the beginning of a £1000 loan. While this can seem like an attractive option, you will usually end up better off if you don't take them up on this offer. The reason is that during the payment holiday you will still be charged and future payments will increase as a result. The total cost of the £1000 loan will also be larger if you accept a payment holiday, so it's best to avoid this option unless absolutely necessary.
DON'T: Commit to a loan you don't understand
Don't be afraid to ask as many questions as you need to so you have a full grasp of what you are signing up to. Read all of the small print and if there are any terms you don't fully understand then make sure your lender explains these to you. It's vital that you know exactly what you are committing to when you sign the £1000 loan agreement.
DO: Consider your credit rating
Lenders will check your credit rating before offering you a £1000 loan and if you have not managed to pay loan payments in time in the past then this, among other things, will affect their decision. If you know that you have a bad credit rating, don't ignore this fact when signing up to a loan. If a number of loan applications are rejected due to a poor credit rating then this could further affect your borrowing power, making it even more difficult to borrow in the future.

2 comments:

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