Here are some top tips for spotting the potential pitfalls of loan offers and finding the right cheap loan for you.
DO: Check your credit card report
Take a look closely on the credit card summary report before you will embark on a cheap loan agreement. Your credit card report will reveal how you will look to lenders when applying for a loan. You will also benefit by seeing if there are any errors and correcting them before you make an application. This will give you the best possible chance of being approved for a cheap loan with low interest.
DO: Read the small print
Before entering into a loan agreement, you need to know exactly what you are signing up for and banks are required to tell you all the important terms and conditions. You should read through these carefully and not be afraid to ask as many questions as you need, to help you understand exactly what your “cheap loan” will mean for you.
DO: You must compare loans.
The lenders may often categorize on their respective loan offers as an excellent deals, where in fact something is better if only you took lot of time to compare your loans across many ranges of different loan providers prior on choosing one what is best, supposedly it should be a cheap loan.
DO: Look out for ‘delivery charges’
In order to secure your business, certain lenders offer a service where they can send a check straight to you by courier or transfer the loan into your account instantly or by the end of the day. However, this will often mean you have to pay an extra “delivery charge”, so unless you really need the loan immediately it might be better to say “no” and keep your cheap loan as cheap as possible. read more here!
DON’T: Mistake “typical APR” for a fixed rate or average rate
APR is an acronym for annual percentage rate, meaning the interest rate for the whole year. It’s easy to make the mistake of assuming the typical APR is the precise interest rate you will pay on your cheap loan. In fact, this term refers to the interest rate offered to at least 66% of applicants for that particular loan. Due to your own personal circumstances and credit history, you may be offered a higher rate than the typical APR or you might not be able to take out the loan you want at all.
DON’T: Be taken in by “payment holidays”
Sometimes, lenders will offer a payment holiday, which allows you to start paying off the loan later, perhaps after three months, instead of having to start making payments straight away. Unless this is really necessary, it tends to be better to turn down this offer, because future repayments will become larger to compensate for this initial holiday and your total amount payable will also be higher.
DON’T: Ignore the other charges
While the typical APR is a good place to start when searching for cheap loans, there are often other charges involved when taking out a loan and you also need to consider payment protection insurance. Take all of these things into account when you compare loans and you will get a much clearer picture of what the different lenders are offering. get updates from http://www.thedailystar.net/business/global-business/norways-960b-fund-wants-banks-disclose-carbon-footprint-loans-1415056