(490 weeks ago)
If you're struggling to get credit there's always a way. Here are five tips for wheeling and dealing your way to a decent loan.
Debt consolidation loans *censored* and we have an article which shows why: The Dangers Of Consolidating Your Debts! Still, they must be tempting for people who are struggling to transfer debts to a better deal. But where there's a will there's a way! Blag, research, connive, swerve and steal, wait, not steal, but be cunning, and you'll get yourself a better loan.
When you look at a deal, you'll see the annual percentage rate of interest, the APR, and next to that you'll probably see the harmless-looking word 'typical'. This means that the rate you're seeing must be offered to two-thirds of successful applicants and worse rates are offered to the remainder. This also means that they can cherry-pick borrowers. Out of ten people, they might reject seven applications, so that they can give the typical rate to two of the three remaining borrowers.
Therefore, if you have a tarnished credit history, or if you don't fit the lender's profile, you could be turned down or offered a much worse rate. If you don't think you're a top-rated borrower, try looking for lenders who offer the same rate to all successful applicants. The main such providers at present are Nationwide, Direct Line, Goldfish, and the Post Office.
Any Foolish old dog who's been hanging around our website will know that, to put it mildly, we're not too big on getting insurance to protect your loan. Loan providers offer rip-off payment protection insurance (PPI), also called personal loan protection (PLP), but, for most people, it truly stinks. (See 'Protection Racket' Under Investigation for more.)
However, I'm going to say something that may shock you: get a quote with PPI on your loan. No, I haven't gone crazy. Let's visit the facts of the matter. You're more likely to get the typical rate if you apply for payment protection insurance, and you're more likely to get the loan, period. Nasty, huh? But true.
All you have to do is get a quote, saying that you want payment protection insurance. Then change your mind: ask them to deduct the cost of the PPI and re-quote. If it's not possible to just get a quote, say, because you're applying online, just take out the policy with PPI. Before complaining to my editor about that suggestion, you should know that you have a right to cancel the policy within 14 days (some providers allow 30). They should tell you how to do this in the small print, although a letter will always do the trick. So get the loan and cancel the PPI.
Remember, if you forget to cancel it could easily cost you thousands more. So don't forget to cancel it! Please!
If you call up loan providers, many will do an instant quote based on the details you give them about your finances. If you're turned down, at least it will happen without another search mark being added to your credit record, which can negatively affect your rating.
4. Be cunning
Whilst you're shopping for a loan, check everywhere. Use The Fool, ask friends, look in bins, but whatever you do, don't go to your high street bank, as they're bound to be very expensive. Whilst I'm telling you what not to do, here are three extra tips:
Don't actually take out PPI! (Although see tip 2.)
Don't get a variable-rate loan, especially not now that interest rates appear to be rising.
Don't get a secured loan.
Don't rely on the APR, as this can be manipulated. Instead, look at the actual cost per month and the total amount repayable (the TAR).
Shop around online for Foolish loans with low rates, but do it soon, as rates below 6% will disappear now that the Bank of England has raised interest rates. You can compare personal loans through The Fool. And yes, we tell you the TAR as well as the APR!
(490 weeks ago)
How To Get Loan Easily
Posted on April 23, 2011 by admin
But before the task of obtaining a loan, you must be an important factor in your business plan. This determines how much you need and what you can afford to borrow and return later. It might be wiser to create a long-term plan for a plan for a few years. An assessment of the possible gains and charges, together with several important factors.
Your business plan should be organized and detail. Create forecasts for any given month over the period, if possible. Do you expect it to be easier for the loan officer about the business to understand. Check and make sure that all necessary information, and other items that are missing.
If you design a plan before hearing of a bank loan for you, you can certainly show them that the ability to transform any amount you borrow to pay them. This can be through the knowledge of your potential profits and the amounts to be set aside to pay off the loan can be helped.
If you have good credit, there’s really no need to worry about not always approved your loan. Although it will be difficult for those whose credit rankings are not the best conditions. Lenders may not be in an agreement with a borrower who obviously do not have the ability to repay what he or she needs strength.