Loan Guides to help you get a loan
Before you jump in and apply for a loan, the first question to ask is. Do you really need a Payday Loan? Make sure that you are borrowing for something that you really need and not just impulse. If the answer is “Yes”, and you have decided to get a loan. This Guide is a good place to start and make sure you get your desired loan. We will discuss How to Get a Quick Loan and things to check before and after.
Always check the APR
Most people do not have an idea about what is APR. The easy or thumb rule is higher the APR more expensive the loan is. The second factor on the cost of the loan is the length of repayment. We have put together a full guide on understanding the APR. Please visit our Blog Section with the title What does APR means in Loans. You should read the whole blog to understand what it is and how it works.
Check Affordability First
You should be able to return the Loan in full plus the interest in monthly installments. You should do your maths and see if you can afford to pay the monthly installments. In general the lowest you borrow is better. We do advice to pay as much as you can upfront from your savings. Then borrowing just the lowest amount to cover the cost. Please remember we are only talking about small loans here. These loans are from £100 to £10,000. This rule does not apply for business loans or Mortgages etc.
Payday loan or Personal Loan
A quick Payday loan might look like an easy option. If you just need a small amount over a shorter period of time. It’s not always the best solution. If you need a larger amount say over a £1000 payday loan. You can not afford to pay it back quickly then this would be a wrong thing to do. The payday loans can have a high APR you need to see if you can qualify for a personal loan. Here at Lendshop we have both the options available we have payday lenders and also personal loan lenders. We can always make sure that you are getting a better deal.
Debt Consolidation Loans
Debt Consolidation loans might sound like a very good idea. It needs a lot of discipline and a very good credit score to work. If you have multiple credit cards with high-interest rates, payday loans and other catalogue bills. You are looking to consolidate then the first thing you need is a large loan with a very low-interest rate. Now never fall for the Secured loan antics as this kind of loans sound good on the paper. If things don’t work out you will lose your house. This is one reason why we only cater to Unsecured loans on our website www.lendshop.co.uk.
Now, most lenders would be happy to lend you a large personal loan. As long as you fulfill their lending criteria. You should explore other options like 0% balance transfers on credit cards and trying to pay the high-interest loans first. A large loan is a long term commitment so make sure you are able to afford it. Think twice before you get a debt consolidation loan.
Don’t Miss a payment on your Payday Loan
Once you have taken a loan out, never miss a payment. If you miss a payment it could result in it getting noted on your credit file. This can affect your credit score. Always speak to your lender in advance and discuss your situation with them. They do not try to take the payment out and come to some sort of agreement with them. Communication is the key here and always remember that the loans come with responsibility.
For free and impartial advice on money-related issues, please visit Money Advice Service.