Simple Tips For Getting Your Loan

Simple Tips For Getting Your Loan
Author: T. O’ Donnell

So, you want to get a loan?

Here are some simple tips that will help you make an informed
decision about what kind to get, and who to get it from.

First ask yourself: do you really need it?

Can you manage without it?
Is it for something frivolous, like a holiday?
Could you get the money by other means: part-time job, from a
relative, the sale an asset?

Don’t put a monkey on your back if you can avoid it.

A loan varies according to:

The amount borrowed;

The interest rate;

The type of rate (fixed or variable);

The term (repayment time in months or years);

Deposit (downpayment);

Associated fees (broker, origination, prepayment etc.);

Insurance required by the lender.

You are buying money for more than it cost the lender. Simple.

It’s a mistake to only care about the interest rate; there are
also arrangement fees and prepayment penalties to consider.
Many ‘no fee’ credit lines have a pre-payment penalty. This is
how brokers and lenders make their money. Work out the total
cost of your loan before committing.

To ensure you get the best terms, keep your credit-line as
small as possible. Loan officers tend to count the total line
of credit available as a liability.

Pay off small debts before the due date. Cancel credit cards
you are not using. Consider their interest rates and fees,
when deciding which cards to keep.

If your spending is out of control, don’t put your home at risk
by getting a home equity credit line to pay off your credit-card
debts.

Shop for rates when the market is calm. Rates change from day
to day, so compare lenders. The quotes you get should all be
from the same time period.

Submit a neat application form; it shows you’re business-like
and efficient. It will be read and assessed by a human being;
appearances count.

Only pay up-front fees to well-known institutions, or ones
highly recommended by trusted sources.

Don’t sign documents without reading them. As soon as possible,
before you close the deal, review the documents you’ll be
signing, and make sure you understand them, so you won’t have
to sign them in a hurry.

Keep a copy of every cheque you write for your loan. If you
call your lender about your loan, make sure you get the full
name of the person with whom you speak. Make a note of it. You
may be dealing with a large bureaucracy, and will need to refer
to this conversation later.

If you find yourself in a dispute with a lender, don’t send
correspondence to the same address you send your payment. You
need to deal with the decision-makers, not the account clerks.

About The Author: About the author: T. O’ Donnell
(http://www.tigertom.com/personal-loans-uk.shtml) offers
personal loans, advice, an ebook and a loan calculator, in
London, UK.

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