7 Tips To Win A Good Deal On Personal Loans

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Personal Loans

Personal loans are the most common loan types. They are ubiquitous and always in demand. They support your financial goals, back you at the time of urgent needs and act unconditional with their availability without asking your purpose. Such loyal support. But, to make it work best for you, the most important requirement is to get the loan deal in the way you want.

However, don’t forget that there is no chance to get illogical and expect something unprecedented. The lenders have set rules and they cannot beyond that. The need is to explore and exploit the possibilities that can bring out the best possible offer. For sure, this is not an impossible task.

1.     Shop around

This denotes the ‘take a glance’ activity that can bring many things in your notice. This is necessary to take a rational decision backed by a due comparison. APR, interest rates, repayment plans, tenure, loan amount, formalities, all these aspects are important elements of a loan deal. Getting all of them queued can be a big task. By looking around on the deals, you can know what is available in the lending market and which one can best serve the needs.

2.     See through those small fonts

Some loan deals come with troublesome conditions, hidden under the small font ‘terms and conditions’ tag. Here stays the most unpredictable policies of a loan deal. Realise your responsibility towards yourself and do a scrutiny of all the sentences. Ask immediately if there is any doubt, as regret is much more annoying than asking countless questions from the lender. Those who act careless on this aspect may find their loan tenure journey bumpy. Once the deal is done, it is done. Stay cautious, act alert.

3.     One lender at a time

The other way to get the best deal is to apply to only one lender at a time. This is necessary for several reasons –

  • Many applications to many lenders at the very same time leave multiple search footprints of credit check.
  • With many credit checks, you become prone to rejection.
  • Even if you get accepted by any lender you may not get the desired loan amount. This is because when a lender notices that you have applied to many lenders, it takes you as credit hungry. No lending company finds such applicants less than risky and prefer to provide a small amount.

4.     Pay heed to early repayment charges

The amount of personal loans in UK is small or to be precise quite due. The applicant may anytime (during the tenure) want to pay off the complete loan amount. At that time, the early repayment charges become an extra and unnecessary expense. It is necessary to ask from the lending company in advance about the existence of any such charge. Normally it is not advisable to take the loan deals that do not have any repay fees or charges. Many lenders do not take the initiative of telling this to you, better if you ask them.

5.     Act good in your current financial behaviour

Lending companies are always interested to know how you are paying and managing the finances ‘nowadays’. Pay all the bills on time, do not leave any obligation pending. The applicants with flawless current financial record always get the deal tailored according to their own needs. From rate quote to repayments, everything comes in your favour.  In fact, the approval too comes smoothly. Stay disciplined and punctual in financial commitments and no obstructions will harm you.

6.     Take no other loan

It will be bad to have another obligation in your name if you want to take personal loans. However, these are short-term loans and do not demand much from the applicant in the name of repay capacity. But the factor of income-outgoing comes here to play its role. If your income is already occupied with many expenses, it is not good to take any other loan before qualifying for your personal loan, no matter how small it is.

7.     Check the credit rating

You should always know your credit rating. This helps to pick the right lender as different lending companies have different policies on credit scores. For instance – if your credit rating falls under the 881-960 category then it is good. But lenders have different strategies on this aspect. This means, some may approve less amount to those below 900 while some may treat all the good credit scorers equally.

The above points should always remain in your notice when you are on the mission to find the right choice. Cautious steps always lead to destinations hassle-free.

About Author

about author

Adrina Martinez

Adrina Martinez is a financial adviser at Personal Loan Lender. She has an experience of almost 6 years in the finance industry. With her excellent efforts, the company has been able to provide myriad of borrowers with financial assistance. Her incredible role is to explain various options to borrowers depending on their credit history and income statement, which has benefited both borrowers and Personal Loan lender. With genuine guidance, borrowers get personalised deals without any risk of falling in debt and the lender gets money back timely without chasing borrowers.