Loans

Many of you would be confused between choosing a personal loan or a credit card. Well, both are the tools to gain credit but still there is a vast difference between the two. By knowing the difference one can figure out which would be the most suitable bet. Personal loans Credit Cards You can borrow bigger amounts with loans. Anything that lies in the range of £1000 to £25,000 is allowed. With credit cards, you will be limited to a smaller borrowing amount of around £5000. A loan is about lending money for a fixed duration of time. If the time period of repayment varies then interest is charged for it. In this case, it is a revolving line of credit that can keep lending money until you use the card, only if you keep making repayments. In case of secured loans, you get money against an asset. With credit […]

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Difference between secured and unsecured loans can help one decide which option will be the most suitable. Depending on one’s current financial condition, assets and income, one can decide on the best possible loan. Secure loan Unsecured loan In these loans, the bank or loan provider will give money against an asset belonging to the borrower. The assets can a home, car, investments or any asset that can be converted to cash. In these loans, the lender gives money without gaining access to any asset of the borrower. These are generally given on the basis of good credit history and stable income of the borrower. Secured loans are charged with low rates of interest when compared to other types of loans. As there is a risk associated in case the borrower can repay, the interest rate in such loans are quite high. Secured loans have a longer term period. Some […]

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Debt is one of the scariest things for people. The danger of not repaying and falling in the trap of compound interest can give you sleepless nights. Some of the methods to cut the cost of debts are explained here. Check out measures that may not seem important at a glance, but still have a strong effect on your monetary graph. Methods to cut the cost of a debt: Raise the credit score: One of the easiest ways to reduce a debt is to improve your current credit score. This helps a lot as a good credit rating attracts better deals and you will end up paying less interest. So, make sure you repay on time and keep a good credit score. Even if you are a first-time credit card holder or someone who is reorganising debts, you will end up getting companies that offer credit at lower rates. Be […]

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If you have an existing debt, then it is important to know that it will have a straight effect on your credit report. Any borrowing, be it in the form of loans, credit card debts or mortgage, the debt gets easily recorded on your credit file. Your borrowing behaviour recorded in these files is observed by the credit card providers and future lenders before giving you credit. It is their way of checking whether you will be able to repay their money or not. The credit file contains not only the borrowing details, but also marks repayments, missed payments, extra borrowings and other small little details. This helps them analyse your borrowing behaviour and regularity of payments. It helps them to keep a track of the applicant’s fluid borrowings like flexible loans and credit card activities. As they can track your financial activity and check your monetary management, they can […]

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What is a mortgage? The term mortgage is defined as a loan used to buy a property. Secured against the property you want to buy, this loan is one of the biggest financial commitments. If one cannot make repayments then the property may get repossessed by the mortgage provider. Thus, it becomes important to protect and repay the mortgage. How to pay for mortgage? There are two ways to pay for your mortgage – repayment and interest only. Both are paid on a monthly basis. The former includes both – the capital as well as the interest while the later includes payment of interest only. ? Repayment mortgage: Repayment method includes payment of capital and interest over a pre decided period of time. This time could be stretched over years and depends solely on your circumstances and financial stability. Normally, one pays a high interest rate to cover the interest […]

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Payday loans represent the most expensive form of credit. They are advertised as short-term debt solutions and have uncommonly high interest rates. There are, however, alternatives to this form of credit such as credit unions. If you find yourself struggling financially, you should always seek financial advice. Even if you have a record of bad credit, you should not need to resort to payday loans. There are more affordable ways to borrow which may be open to you. Payday loans explained These are, generally, smaller loans taken out for a period of maybe a week or a month. They are called payday loans because initially they were to help workers stay afloat financially until they received their salary at the end of the month. The particular problem with payday loans is that many people find themselves in a vicious cycle of debt, taking out new payday loans to cover the […]

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Read the most frequently asked questions about loans; compare quotes and find the best deal to suit you. Is it a good idea to take out a loan? If you want to borrow money from a bank, building society or other source, it is called a loan; you will have to pay interest on your repayments and be at risk of debt if you cannot manage to pay back each month. Find out more in our beginners’ guide to loans. What is the amount I should borrow? It depends on what you need the money for but as a general guideline, it’s wiser to borrow only the amount you think will cover your needs. Sometimes though, if you borrow a large sum you may be charged a lower rate of interest and it’s worth shopping around. How should I best calculate what my loan will cost? The APR (annual percentage […]

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