The rate of interest for personal loans are now falling as there are lots of competition among various banks in UK and therefore keeping in view of current market scenario, you need to follow the following tips while applying for any kind of personal loan in order to meet your requirements.
- Start comparing rates of different banks
If you are looking for any kind of väikelaen then it will be better if you enquire about APR (annual percentage rate) of different banks so that you know how much your loan will cost you. Besides interest, there are many other charges too for taking loan which may also vary from bank to bank. Quite often you may notice that your own bank may claim that they are offering preferential rate to their clients, however the fact is that some other bank is offering much lower rate than them.
- Read the small prints of terms and conditions
Often most of us avoid reading the terms and conditions carefully as it is written in very small fonts. There may be certain offers available for any particular membership that can benefit you. You may miss certain special discount if you are eligible for that by not reading these fine prints carefully.
- Consider the early repayment charges
In certain cases, you may like to pay back your loan earlier to clear your loan, however for that you may need to pay certain higher charges. Therefore, you may explore what will be the early repayment charges if you ever decide to clear your loan earlier. In certain banks there may be no repayment charges at all.
- Check the rates of PPI from various sources
PPI (Payment Protection Insurance) can be useful for certain consumers which is meant for keeping your option to pay your repayment amount by credit card, in case you are unable to pay your instalment due to any reasons. If you need this option then try to find different sources of PPI to get best deal. Your lender may also offer the same however his rate of charges may be higher. Also, there are few PPI that offers many kinds of discounts and hence you may do little research about it while choosing this option.
- Check your credit rating
Check your credit rating before you apply for any kind of loan. In case if your credit rating is not too good then you may not get lower rate of interest.
- Consider credit cards loan
If your loan amount is not too big then you can also consider the option of credit card purchase and divide your repayment in 12 or 16 equal instalments at zero interest rates, as most credit card companies offer. This will be much cheaper option for you.
- Borrow more
Many banks offer lower rate of interest if your loan amount is bigger. Therefore, consider the option of taking higher amount of loan.
- Avoid applying for loan from many sources
You must avoid applying for online loans from number of banks as that may leave your footprints that your lender may track and think that you are desperate for money and may consider you to be risky for offering loan.
Samuel Farrow has written this article. if you are looking for a reputed company offering väikelaen, then feel free to visit bestcredit.ee. You could also check out other loans that they offer.