Best Financial Advice When Looking For Loans in the UK

Screen Shot 2016-06-15 at 19.45.28There can be vast reasons why you may need a loan in the UK. Some of the major reasons include: buying a car, paying off mortgages arrears, emergency or illness among others. Taking a loan is no problem but you need financial advice when it comes to loans. Many people find it hard to repay loans or unable to repay due to high repayments rates, therefore, ending up being more into debts than before or even losing their belongings to lenders.

Here is some advice:

  • Never borrow unless it’s completely necessary. Well, this is where most of us go wrong; we borrow to complement our luxuries. This is not the wise thing to do. I will leave this advice as simple as it is; don’t borrow unless it’s completely necessary.
  • Do your research before getting a loan from any lenders. This will make you determine the best lender and those with best interest rates. You will also get to know whether you qualify and the repayment period for the loan.
  • Get a secured loan. These loans are easy to get because lenders are certain that you will repay due to the collateral provided. You can get the loan according to the value of your presented item; it can be a car, a house or a piece of land. These lenders are everywhere in the UK and you will get your loan within 30days after application.
  • Get an unsecured loan. Different from secured loans, the loans are given according to the credit score or worthiness of individuals. Though they have great interest rates, they are a better option to get a loan. The processing is fast and it takes few hours to approve the loan. The lender offers the lending limit according to your credit score. An example of such loans is a guarantor loan; here you can get an unsecured loan if you have nothing to offers as a collateral
  • As I have mentioned above, taking a keen look at the interest rates of any loan lenders is important. Interest rates determine how much money you will repay to the lender. Lenders use the Annual Percentage Rate (APR) to calculate interests on loans. It is your responsibility to take a closer look at this, and if possible compare it with other lenders. This is because the lower the rate the better and the less money you will repay to the lender.
  • Any taken loan should be repaid. It’s your responsibility to ensure that you repay your loan in a set manner to avoid irregularities and risks involved in not repaying your debt. Life is unpredictable and it is, therefore, advisable to take loan insurance in case of anything.

Finally, the above advice will help you be financially set and wise as you plan to take a loan in the UK. The advice will also help you stay focused on repaying your loan promptly. No one wants their credit score and history to be ruined by loans, so, be vigilant and heed the above advice.