Virtually everyone has asked for a loan at some point, be it for a house, a new car or a computer, for example. As we all know, there are different types of loans; asking for a mortgage is not the same as asking for money to buy a new cell phone that would come in handy for work. Before borrowing money, it is important to consider whether we really need it. Here are some examples of when it can be a good solution:
– When we need to buy something really useful and essential (a house, a renovation, a car, a computer or any other basic tool required for work or study).
– When something unforeseen occurs (a visit to the dentist, the boiler breaks down, the car needs expensive repairs).
– When we really want to do or have something and don’t mind paying for it over an extended period of time (an exotic trip, our wedding, the watch we have always wanted).
– When we want to make an investment.
Loanscouter.com is a loan comparison site that allows us to find the one that best suits our personal needs in a fast, simple and entirely secure way. It is a free tool that does not entail any kind of commitment or obligation for users. It simply informs us about our options and their respective conditions. The most convenient way to get all the answers necessary to make the best decision.
What are the most important factors when choosing a loan?
– First, we need to be clear about the amount of money we require. A good tip is to borrow only the amount of money we need and avoid getting tempted to borrow extra money for some whim. Always remember that a loan is not free – the more money you borrow, the more interest you will have to pay.
– The time we are going to need to pay back the money is also crucial. Here, it is important to be realistic and avoid setting a very short time frame in the hope of getting a raise or something similar. It is preferable to pay a little more in interest and have a smaller installment over more months than to have to struggle making ends meet.
– When we know the amount and the repayment time, we should go into more detail on the financial institutions’ offers: Do we need some sort of special condition such as money in 24 hours, a loan where ASNEF is accepted or that the whole application can be done online? A basic guide on loans with ASNEF can help answer all our questions about when and how to apply for this type of loan. It is worth remembering that they are not always granted – what they guarantee is that our case is considered even if we are listed in a registry of defaulters.
– Institutions that have passed the above filters are our final candidates. We will make our decision based on the costs of each offer, namely the interest rate and especially the APR. The APR is the Annual Percentage Rate and includes all extra expenses, such as commissions. This matters because many financial institutions nowadays offer interest-free loans – but that does not mean they are free. The easiest way to get all this information quickly and easily is to use an independent comparison tool to get the most reliable and secure results.
What kinds of loans are available?
Depending on our needs about the amount of money we require, how quickly we want it, and what we will be spending it on, there are different types of loans to best suit each individual situation. These are some common categories of loans:
– Secured loans are protected by something of value that is used as collateral, such as a car or a house. Here we are using our personal assets to provide security that we will repay. The advantages with having a secured loan is that it generally allows higher borrowing limits at lower interest rates, and with longer time to repay it.
– Unsecured loans, such as credit cards or student ones, are not secured by personal assets. Since they are not protected by collateral, unsecured loans have a much wider range of APR that tend to be higher than in secured ones.
– A personal loan is a type of unsecured one that we can use to borrow money for just about any spending purpose, whether it is for a holiday, a new gadget, or to cover a sudden medical cost. Personal loans are a kind of installment loan, where we borrow a specified amount of money that we pay back with interest according to a monthly payment plan that typically ranges over a period of 12 to 84 months. A personal one is also known as a signature loan.
– Car and mortgage loans are the two biggest loans most people take out in their lifetime to help in buying a vehicle or a house. While a personal loan could be used towards payment of a vehicle, a car one is specifically for the purpose of buying a new or used auto. A mortgage is a type of loan that allows us to buy real estate, or for an existing property owner to raise funds towards another spending purpose.
– Credit cards, lines of credit and revolving credit offer additional ways to borrow money. While we can get a sum of money from loans, different types of credit enable us to receive funds in allotments that we can take out whenever we need additional funds.
There are many different options available when we are looking for the best loan or credit offer to suit our own current situation. With so many options to choose from, an online loan comparison tool can safely and quickly simplify the process of deciding which way to borrow money. We can find help to get all of the types of loans and credit offers mentioned above, as well as refinancing and loan consolidation.