Loan Advice

A List Of Tips On Getting A Good Loan Deal

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    • Be wary of promises of getting a loan quickly. Many borrowers are told that their loan deal will close within a particular time. They don’t make payments on existing debts, in anticipation of the new loan. After several delays, they go in arrears with their current debts, with no cash coming in from the new loan. Some brokers then order new credit reports, and charge the borrowers higher fees, and a higher rate, because of the delinquent loans, which resulted from delays caused by the broker!
    • Make sure you understand and are willing to pay all of the fees listed.
    • Beware of statements such as “No cost to you”. Some lending companies will add closing costs to your balance rather than require you to provide cash upfront at closing.
    • Watch out for the ‘Deal Of A Lifetime’. When shopping for your loan, watch out for the deal that seems too good to be true. If you you can never speak to an individual, or you have to wait ‘on hold’ for a long time, this speaks badly for the level of service you are likely to get.

    • If you call your lender about your loan, make sure you get the full name of the person with whom you speak.
    • Does pulling your credit report many times damage your credit? Answer: All inquiries for your credit report within a 14-day period will count as one inquiry if you are looking for a loan to refinance your home, a mortgage to purchase a home, a home equity loan, or a car loan. If you are looking for a personal loan or credit card, however, each inquiry will be counted separately.
    • UK: Is the lender a member of the Finance Industry Standards Association (FISA)?
    • Among the variety of loans available to Britain residents, we can mention 2 basic types: secured and unsecured. Secured loans are those whereby you set some of your property as security for the lender. This type of loan backup is also know as collateral, and it may come in different forms but the most usual type is property, making it possible to have more than one loan secured on the same property. On the other hand, unsecured loans do not require any property to be set against them but they garner higher interest rates and it is necessary to have a good credit record to obtain a loan of this type. Personal loans are useful when you need to cover certain expenses or you need to make important purchases. Unusual amounts that lenders borrow for any purpose loans range between £1,000 to £100,000 on average.
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