Looking to buy something special? Have you considered using an unsecured loan? They're very common these days and this article shows you just what's involved when you make an application.
Unsecured loans can be perfect for providing the finance for something you’ve always wanted but have never had the cash available to go and buy before. No matter what it is that you have in mind, as long as your purchase is not for commercial / business reasons, there are lenders who specialise in this type of loan who are looking to help.
Exciting isn’t it? Before we get carried away however, the fact that you are reading this article may suggest that you sense that there could be a problem waiting for you when you apply. Let’s take a look at where some of those problems may arise…
Unsecured loans are typically available for between £500 to £15,000 with most lenders. If you need more, you may not be able to get the money you need in this way. The reason lenders put a ceiling on the amount of money that they are prepared to lend is primarily because they have no real security that you are going to pay the money back. If you think about it, nobody has the right to borrow money. This means that the lender will need to test your suitability to their particular rules before they agree to provide you with the finance you need.
Whilst still substantial, the amounts of money involved are perhaps significantly less than with a mortgage or a secured loan which reflects the level of risk that you are asking the lender to face when investing their money in you. That is not to say that they think that you are going to default but if you did, and as many have in the past often due to unforeseen circumstances, the lender may have not only lost their capital investment; they have lost their interest to be earned from the deal as well. Whilst they could force you through the courts to repay the money and they could recover some of the money through the use of bailiffs, it is hardly an ideal solution.
With unsecured loans and tenant loans, they will probably prefer to run a few checks on you and your financial circumstances first. They will check your citizenship to see how likely it is that you could up-sticks and return to your country of origin once you have received the cheque. It is important that you are a UK citizen.
They will look at your history of residency in your current and previous properties if you have been in the current home for less than three years. Again, they want to know how likely it is that you may move and effectively disappear with their money once you have the cheque.
Employment history is also important because with employment comes income to repay the loan. Regular income and preferably from the same employed over a period of years is desirable with a lender because this shows stability and reduces to some extent, the likelihood of you becoming unemployed in the near future and being unable to repay the loan.
They will also want to check your credit file with one of the large credit reference agencies such as Experian or Equifax to see whether you have borrowed money through other forms of credit in recent times and whether you have kept up the repayments or not. This helps them to understand whether you are likely to default in the future.
Once they have this information amongst other questions that they may ask, they apply a points score to the results and if the score is within a certain threshold figure for that particular lender, they may agree to lend you the money and you can now begin to enjoy the benefits of your loan.
Unsecured loans and tenant loans are pretty straightforward to apply for these days, so just find an online broker and fill in your details on their enquiry form and sit back and relax. They will take charge of the application process and do the vast majority of the work on your behalf. Good luck with your application!
Source : 1888articles.com
Sunday, June 3, 2007
Pros and Cons of Payday Loans
Short term instant loans are known as payday loans. These are cash advances that are to be returned with interest on payday. Within a few minutes of applying online the loan will be approved and you will have the cash within a couple of hours.
Short term instant loans are known as payday loans. These are cash advances that are to be returned with interest on payday. Within a few minutes of applying online the loan will be approved and you will have the cash within a couple of hours.
Also known as cash advance or post-dated check loans, the borrower can write out a check that can be cashed in on payday and avail the amount the check is for immediately. To get this instant cash the charge for every USD 100 is about USD15 for 14 days only. Any delays means you need to pay the charges once again.
There are both pros as well as cons to payday loans. These loans are at a high rate of interest and are being marketed aggressively through radio, television, direct mailing, and the World Wide Web.
The plus points are:
• If you suddenly need cash for medical expenses or unforeseen emergencies, a payday loan is the fastest and easiest.
• In a financial crunch, a payday loan can help you pay immediately pending bills so that your credit report remains unblemished.
• The paper work is simple and all they require is you name, address, and bank account information. The procedure for obtaining a payday loan is simple.
The disadvantages are:
• You can avail only small amounts. There are limits, some states permit as much as USD 1000 while in others the maximal permissible is USD 300-400.
• If you do not pay exactly in 14 days and need to take an extension then you may land up paying USD 60 for a loan of USD 100. Payday loans are not recommended if you need a large loan or are unable to pay the amount back quickly.
• Although payday loans enable you to access money quickly, in fact, the rate of interest charged is quite high. In fact, long term credit rates are more affordable.
• Often, the terms and conditions may not be clear and you may land up paying finance charges twice or thrice especially if you allow the amounts to be deducted from your salary itself. You must specify that you want the whole amount of the payday loan deducted not just 25% or so.
A payday loan is actually a cash advance against you next month’s earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation. However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
Source : 1888articles.com
Short term instant loans are known as payday loans. These are cash advances that are to be returned with interest on payday. Within a few minutes of applying online the loan will be approved and you will have the cash within a couple of hours.
Also known as cash advance or post-dated check loans, the borrower can write out a check that can be cashed in on payday and avail the amount the check is for immediately. To get this instant cash the charge for every USD 100 is about USD15 for 14 days only. Any delays means you need to pay the charges once again.
There are both pros as well as cons to payday loans. These loans are at a high rate of interest and are being marketed aggressively through radio, television, direct mailing, and the World Wide Web.
The plus points are:
• If you suddenly need cash for medical expenses or unforeseen emergencies, a payday loan is the fastest and easiest.
• In a financial crunch, a payday loan can help you pay immediately pending bills so that your credit report remains unblemished.
• The paper work is simple and all they require is you name, address, and bank account information. The procedure for obtaining a payday loan is simple.
The disadvantages are:
• You can avail only small amounts. There are limits, some states permit as much as USD 1000 while in others the maximal permissible is USD 300-400.
• If you do not pay exactly in 14 days and need to take an extension then you may land up paying USD 60 for a loan of USD 100. Payday loans are not recommended if you need a large loan or are unable to pay the amount back quickly.
• Although payday loans enable you to access money quickly, in fact, the rate of interest charged is quite high. In fact, long term credit rates are more affordable.
• Often, the terms and conditions may not be clear and you may land up paying finance charges twice or thrice especially if you allow the amounts to be deducted from your salary itself. You must specify that you want the whole amount of the payday loan deducted not just 25% or so.
A payday loan is actually a cash advance against you next month’s earnings or salary. And, today you can apply for a payday loan by fax or email. It is quick, easy, and instant and will help you tide over a tight situation. However, it is important to avoid rollovers as this is a debt trap. Take a payday loan only if you are sure you can return the whole amount as soon as you get paid.
Source : 1888articles.com
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