Author: Paul

I am always happy when I am writing about finance. This is because I know that finance is a topic that will have an impact on a lot of people as everyone uses money. I hope that by reading some of the articles that I have written, people will be encouraged to take more interest in their own financial situation and do more to improve. I hope that they will realise that they can just start by changing a few simple things and that could lead to a much better financial future. Hopefully a few changes will lead to more which will have a big impact.
General

What Should I Spend Personal Loans on?

We can often get a bit concerned about whether we are taking out a loan for a good purpose. This is well worth thinking about because you could find that you will end up paying for a loan and regretting it. You do not want to be in this position. Therefore, it is wise to think about what you are spending the money on and whether it is worthwhile. There are really two main things that you should be spending money on, but it can be tricky knowing whether your purchase fits into the categories.

Emergency Purchases

If you need to pay for something and you have no money then this would be considered to be an emergency purchase. For example, if you have no money left and have fun out of food or have an electricity bill to pay, then this could be an emergency. However, it is a good idea to make sure that you are not panicking too much and making poor decision. When we are in an emotional state, we can tend to make poor decisions. So, make sure that you check if you have any savings that you can use to pay for it. Then think about whether you can delay paying for it. If it is a utility bill, for example, you might be able to contact them and see whether you can wait to pay when you have more money or if you have any credit on the account use that instead. It is also good to think about whether you really need that item. For example, if your tumble dryer breaks is it an emergency to replace it or can you dry things in another way and wait to save up the money to buy it. Think carefully about whether your situation is really an emergency or not.

It is important to do this because there is a cost associated with any loan. You need to think about that cost and how you will justify that cost. For an emergency you can justify it but if it is not an emergency then you will need to think about whether you will be better avoiding that cost and waiting before spending the money.

Things to Improve Your Future

Another good reason for borrowing is to make improvements for your future. Something that would fall into this category would be to pay for a course, that will help you to get a better paid job. Then the money that you have paid for the loan would be seen as an investment because you use it to improve your skills and will get better pay as a result. It will hopefully pay for itself in the end. This is the same thing that people hope to get from a mortgage as once they repay it they will be able to live in a house without paying any rent and that can save a lot of money in the long term. Therefore, you need to think about whether the loan will be spent on something that will improve your future.

If you are considering a personal loan it is worth knowing that the lender will not mind what you spend it on. They will not be checking. With some loan types, the lender does check this but they will not with this specific one. They will allow you to spend the money on anything that you want. However, do not use this as an excuse to get one for any purpose, make sure that you can justify the expense to yourself before you get a loan.

Personal Loans

Should I Consider Using Personal Loans?

If you need some money, then you might be thinking about whether you should use personal loans. It is well worth thinking about this, like it is with any financial decision. It can have a big impact on your future and your borrowing experience. Therefore, it is worth going through a thought prices which might look like this –

Should I Borrow Money?

It is wise to start by thinking about whether borrowing is the right thing to do at all. Think about what you will be using the money for and whether it is worth borrowing to get it. Borrowing is best used for emergency situations or to buy things which will improve your financial future. This means that if you will not have enough money to pay essential bills, find food or things like this then a loan can be a good idea. Also, if you want to pay for a course to better your career or buy a home, this will also be a good reason for borrowing.

It is wise though to also think about whether you can cope with a loan right now. Consider what you will be expected to do with regards to repayments and whether this is something that you will be able to cope with at the moment. It can be wise to find out how much the repayments will be and see whether you will be able to afford them.

It is also a good idea to consider any alternatives. Think about whether you have some savings that you could use which might be a cheaper option for you or whether you might be able to spend less elsewhere or do some extra work to earn the money that you need. It is a good idea to think through this first because it could be a much cheaper option for you.

Should I Use Personal Loans?

If you have decided on using a loan, then you will need to decide which loan is the best for you. This will depend on a lot of factors. You will need to consider how much you want to borrow, how much you can afford to repay, how long you want the loan for, how much you are prepared to pay for the loan and which loans types you are able to have. So, if you are considering personal loans you need to be aware of what they are like and what they will offer you and then you will be able to decide whether they will be suitable for your needs. They will vary a bit, but there are some main similarities that they have. Consider these and it will help you to be able to decide whether this loan type would suit you. Of course, you will also need to do this for other loan types so you can see which one is the closest to your requirements.

Which Lender is Best?

If you do decide that personal loans are the best for you, then you will need to pick between all of the different lenders. There are a lot of different lenders that will offer them and they will differ in various ways. You will need to look at things like how much they will cost, what their repayments terms are, what their customer service is like and things like this. There are things that might be more important to you than others so think about them. Most people will focus on price, but make sure that you look at other things as well so that you know whether you are getting good value for money.

Short Term Loans

Will Short Term Loans Fulfil my Borrowing Requirements?

If you need to borrow some money, then you will have a big choice of different loans available for you to look at. This can be really great because it means that you will be able to find the one that matches your needs the most. However, it is important to make sure that you know a lot about the different loans so that you can choose the best one for you. It can be a good idea to have a list of requirements that you have an idea of what features you need to look out for in the loans that you are comparing. You may find that you know a lot about certain types of loans such as overdrafts, credit cards and mortgages but you may be less familiar with short term loans. It can be good to make sure that you are aware of what the loans are and how they work as it will enable you to make a judgement as to whether they will be good loans for you or not.

How Much Can I Borrow?

It is important to start by finding out how much you can borrow with the short term loan. This will vary between lenders and so you will have to check with them to find out. However most short term loans will only allow you to have between £100 and £1,000. This might not seem like much but it can be safer to borrow less money. This is because you will not be tempted to spend it on things that you do not really need but just the specific sum of money that you need. By borrowing too much, you will have a larger loan to repay which can be stressful as well as expensive.

How do I Repay?

Short-term loans tend to have two ways of repaying. A payday loan will need to be repaid in a lump sum when you next get paid. This means that you will clear the whole loan really quickly but you will need to find that big chunk of money to pay it off and then make sure that you still have enough left to cover all of your other expenses. There are some instalment accounts though, where you will be able to spread the cost of the loan. These can be easier to manage but they will normally be more expensive so you have to decide whether you think that it is worth the extra money to make it easier to repay.

Short term loans can help you reach your financial goals.

Can I Afford it?

It is really important to make sure that you can afford the loan that you pick. Find out how much it will cost you in full firstly. Then think about whether you think that the item you are buying with the loan is worth it considering the cost of the loan on top. Also think about your financial situation and think about whether you feel that you can afford it.

What About my Credit Score?

Many lenders will take a look at your credit score and decide whether they will let you have the money based on this. However, it can difficult for some people to get a loan at all if they are looking at this. This is where a short term loan is unique. The lender will not use the credit score and will therefore be willing to risk lending to anyone. This can be very handy for anyone that does not have a good credit score as they will not have to worry about whether they will be turned down for the loan or not.

Guarantor Loans

Can Guarantor Loans be Used to Buy a Car?

There are lots of us that find that when it comes time to buy a car we need to borrow money. Cars can be expensive and if we need one for work or other essentials journeys then we will have to own one. It might be that we are in the situation where we really need one, perhaps because ours no longer works or that we would like one so that it is more modern, reliable and environmentally friendly than the one we have. Most of us will need to spend quite a bit on a car in order to find something that we will be happy with. This means that we will need to find the money. There are many of us that will choose the borrow the money. It is really important to make sure that the loan that we choose to take out will be suitable for the purpose of buying a car though.

Where to Start

We need to start by thinking about what we want form the loan. Start with the amount that you need to borrow. Consider how much money you have saved up that you can use towards the car, then find out how much it will cost you and the difference will be how much you need to borrow. Then you can start thinking about what sorts of loans will allow you to borrow that much money. Then you can think about what you can afford to repay and look for loans which will offer you a repayment schedule that you feel you will be able to manage. Make sure that you carefully examine your own financial situation so that you can carefully assess how much you will be able to afford. Lastly, it can be good to think about whether there are any features of lenders that you are keen to have, perhaps a lender you have heard of, with a good reputation, with good customer service or things like this. Note these things down and you will be in a good position to be able to start matching them up to find the best lender for you.

How to Pick the Right Loan

Now you will need to look at the different loan types to find out which will match your needs. You will be able to eliminate some right away because they will not lend you the right amount of money. Then you will be able to look at the repayments and see which you will be able to afford. It is also a good idea to consider the cost of the loan at this stage. You will find that the costs of different types of loans vary a lot and you do not want to end up paying more than necessary. Therefore, take a look at a typical example of a loan of different types and see how much they typically cost so that you are able to compare them carefully.

Can Guarantor Loans be used?

If you have a poor credit record then your choice will be more limited and you may find that the only loan that you will be able to take out for the amount of money that you need is a guarantor loan. You may wonder whether this can be used. It is certainly a loan type that you will be able to use if you wish to but you will need to think about whether it matches in with your requirements. It is also important to note that for a guarantor loan you will need to find a guarantor. You will need to find someone that will be willing to cover any repayments that you are unable to make and so they will need to have a good credit record for the lender to approve them.

No Credit Check

Are No Credit Check Loans Really Fast?

There are times when we need money really quickly. If you are in this situation then you may have heard that no credit check loans are quick and that you should use those so that you can get the money that you need as soon as possible. However, are they as fast as we think?

How Fast Might They be?

It is worth noting that no credit check lenders will vary in how quickly they can get money to you. This means that if you need money in a hurry you will need to compare them in order to find out which might be the fastest. You will find some can get you money within a few hours, but there are some that are longer and so you will need to compare them to find out. Even if they advertise they will be quick, it is best to ask them whether they will be able to process your specific application quickly so that you can get the money as quickly as you need it.  If you want to borrow outside of normal working hours, then you may find that some lenders will be available to help you with this. You will need to check though as they will differ and these may not be so fast to organise or they may be dearer so you need to consider how quickly you need the money and who can provide you money in time at a price that is right for you. So, depending on when you are borrowing, you may choose different lenders.

Are They All Fast?

Not all lenders will be as fast as others. This means that if you need money really quickly, you will have to take a look at them and compare them to find out which might be the quickest for you. It can be a good idea to ask the lenders how long they think they might take to help you, if you are in a big hurry and then you will be able to tell which of them will be the most useful for you.

Can We Speed Them Up?

Although it is unlikely that we will be able to speed up the lender, there are things that we can do which will mean that they are not slowed down. For example, if you check through the application from carefully and make sure that you have completed everything properly then this will help as they will not have to come back with you with queries. They may also need you to send additional information and make sure that you send that on time as well and then they will have everything that they need to process things really quickly.

It can be tempting to really rush the application and this can be a mistake. You want to make sure that you take your time to think through whether the loan is a good idea. Think about whether you should really be taking a loan out for thing that you are buying. Think about whether this is the right type of loan and whether you have properly compared the lenders to make sure that you are not paying more than necessary. It is also a good idea to make sure that you are fully aware of how much you will need to repay and when and make sure that you have checked properly to make sure that you will be able to afford the repayments and that if not, you have a plan in place to change your spending and earning habits so that you can afford it.