Personal Loans: Now Is the Time to Borrow
Loans (Photo credit: zingbot)
For many, personal loans are fast becoming the best option to get through the impending winter. With the effects of the credit crunch still lingering on, and with the expensive festive season soon approaching, many families will be looking for effective and relatively inexpensive ways to make it through into the new year. And whereas borrowing more money might have been potential financial suicide only months ago, with remarkably low interest rates now available, personal loans are now emerging as the best possible option.
The Future Looks Bright for UK Loan-seekers
Plenty of UK citizens would have been kicking themselves for missing out on the Sainbury’s Bank limited time offer of 4.8 per cent interest on repayment of loans in excess of £7,500 earlier this year – the cheapest offer to date. But with the economy slowly improving thanks to a recent injection of funds from the Bank of England, many personal loan companies are now competing with each other to provide the best deal, with most now offering repayment schemes that thankfully fall below the magic 5 per cent mark.
A Good Credit Record Is All Important
Despite this positive turn, individuals with poor credit records will unfortunately still stand a big risk of being denied a personal loan. Whenever you apply to a loans company, they will cross-reference your credit record with a credit reference agency. And if your credit report is blank or if you have a history of missed or late payments, you will struggle to get a loan approved. Therefore, it is absolutely essential that you check your credit report regularly before making an important loan application. This will of course give you the opportunity to hopefully correct any inconsistencies before the loan company sees them. The process may also help you to recognise other ways in which you can strengthen your rating, such as registering on the electoral roll. Every little helps, so be as detailed and as vigilant as you can. It will all pay off when you manage to get that loan approved by 1st Stop, or indeed whoever you chose to approach first.
Paying Off Your Loan
Having a plan to pay off your loan is essential. The first piece of advice is to pay off your most expensive debt first, which should make it easier to pay off subsequent smaller debts. Use your savings to pay off your debts, as this can often take a big chunk out of your debt and really helps to get the ball rolling. Unless you feel that you may be unable to re-borrow cash, using your savings to pay off debt is the most sensible way to get debt free. You should also see if you can negotiate interest rates or deadline dates with lenders, as they may be more flexible than you think.
Don’t Delay
Of course, these great interest rates that we see now won’t last forever. So if you’re in need of a personal loan then now is the time to act. Find out your credit rating, correct any errors, make a plan for repayment, and you may find yourself in a far more comfortable situation heading into 2014 and beyond.
