Getting a loan that suits your budget and your lifestyle starts with knowing what types of finance are available as well as understanding which of these are best suited to your specific needs.
Get the loan that you need, today!
In the world we live in today it has never been easier to obtain the loan of our choice. It’s as simple as going online and doing a quick search after which hundreds of sites will come up, all willing and able to offer you an online loan.
The best part of it all is that you can apply online for any type of loan, even a bad credit loan that requires security. No more waiting in long lines at the bank or filling in mounds of forms – you can apply online and get your loan approved almost instantaneously.
The right loan type for you
As we now know it is easier than ever before to acquire a loan, the question that remains, however, is what is the correct loan type for you? When asking this question it is important to consider a few points, namely;
- Reason – why do you need to take out a loan, what is the purpose or function of this loan i.e. what will it be used for?
- Amount – it is important to consider exactly how much money you need to borrow, you should never borrow more than is needed.
- Term – how long will you need in order to repay this loan amount with the applied fees and interest.
- Security - whether or not you will need to provide security is an important consideration and this will affect your application, loan amount and interest rate among other things.
- Interest rate & fees – what so many people fail to realise is that no loan is free, you will always pay back much more on your loan than what you borrowed, to begin with, and that needs to be taken into consideration when you work out your affordability. Thankfully, most websites have loan calculators that will show you what your loan will cost in total and what your repayments will look like.
Types of loans available in the UK
#1) Your personal loan... your money!
There are many great things about personal loans; your loan amount can be small or large and you are in no way limited on what you can spend the loan on.
You can choose to spend it on home renovations, cosmetic surgery or to buy collectables, it does not matter you can do whatever you want. Personal loans can be paid back over a period of a few months or a few years, regardless of the initial amount borrowed.
#2) 1, 2, 3 quick & easy money with a quick loan
Quick loans usually aren’t for very large amounts of money and are subject to shorter repayment terms, usually no more than a few months. They are very convenient in the sense that you can apply online for your quick loan and within an hour the funds will be in your bank account.
Interest rates on quick loans are flexible but are much higher than interest rates on most personal loans and other loans with longer terms. Quick loans are also commonly referred to as payday loans, instant loans and even short-term loans.
You should try to keep this form of credit to a minimum as the interest is high and may cause dependency if used for extended periods of time.
#3) Home is where the heart is, get yours with a home loan
One of the most common loan types is a home loan. As the name indicates, one would take out a home loan when they are ready to purchase their own property.
Home loans are fantastic, you can borrow large sums of money for the purpose of purchasing a home – the interest rates are usually very reasonable and you can enjoy repayment terms up to 30 years.
Whether you are looking to buy your own home or make an investment, this is the type of finance that you need to make it happen. You may need to put down a deposit of up to 20%, depending on your individual circumstances.
You also need to have a good credit score to be able to secure home finance and you can select a range of different home loan types which may have either a fixed interest rate, a variable interest rate or a mixture of the two.
#4) Getting a car loan is EASY
Whatever your preferred type of vehicle (car, motorcycle, van or even boat), a car loan will enable you to purchase your own mode of transportation. Car loans are designed to offer an affordable interest rate and can be paid off between a period of one to seven years.
Car loans and their repayments can be expensive which is why affordability is that main concern with this form of finance. As with home loans, you need to have a good credit rating to access competitive interest rates from leading car loan providers and banks. That being said, there are also bad credit lenders who can assist those with a poor credit history.
#5) Credit cards & overdrafts for instant access to cash
Finally, if you’re looking for a revolving loan that you can use over and over again as and when you need it then you should consider a credit card or overdraft.
Generally speaking overdrafts are more expensive than credit cards and do not offer the same range of benefits such as insurance, extended warranty on purchases as well as cashback rewards and other items.
Build your credit score with a loan
Although many people may be sceptical and hold to the old belief that taking out a loan is somehow damaging to your credit rating, the opposite is in fact true. Taking out and repaying a loan is actually good for your credit rating - provided you pay your loan amount back on time.
Obtaining a loan is as simple as going online searching for a lender that offers you the best rates – the best part about applying online is you skip long lines and mountains of paperwork. Get your financial freedom today.