Must read this before you take a loan money from any bank

Borrowing money is very hard job, especially with a poor credit history, banks or money lending companies can expect a lot more and we end up repay a fortune. Having said that, lending companies or banks are prepared to take a huge risk by sanction a loan for an applicant with a poor credit history. Therefore beware that the better credit score you have the better interest rate you will get for your loans.

Now, borrowing becomes part of the day today life for anyone, be it a wealthy business person or an average middle class family member or a student; in this day and age even governments are borrowing, so its no shame in doing that but it is if you pay a higher interest when actually you don't need to, because more lenders are available on the market and looking for a honest borrower.

Research the market:

Potential lenders are widely available on the market, do your research by spending more time on comparing the interest rates APR, penalty charges, length of the loan and further conditions. Especially, compare the over all re-payment cost because some lenders are very clever by indicating less monthly repayment but for longer period or by adding additional documentation charges or similar charges; also make sure that you read the term and conditions before apply for any loan, because in some cases if you miss a re-payment, then you will be charged over due fees, collection charges  and penalty etc so beware of those conditions.

More importantly, check if you repay the full loan amount during the loan period would there be any additional charges applicable, or how the interest rates will be calculated on that circumstances because it is very important during the loan re-payment period if you avail a cheaper loan from another lender it is wise to settle the expensive one and go for the cheaper option, is in it?

Final suggestion, before you apply for any loan make sure that you have done your research and aware of all related terms and conditions and ready to accept the loan if a lender sanction one because every time you apply for a loan the lender will leave their credit check foot print on your credit history which may reduce your credit score and eligibility.

 

So do compare the available lenders' interest rates, always remember to use cashback websites such as top cashback to get the cheaper interest with a reasonable cash back as well.

Good luck with your loan.

Thanks: google pics

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Why checking your credit history is important

Ok, you are now concerned about your credit history, if not then yes it is absolutely very important to think about it.

So to understand what is credit history, we need to think as a money lender as to understand first what is the need for a credit history. Banks and lenders are basically required to establish wheather a borrower has a capacity to repay the loan with interest and in time. To gain such a critical and substancial data, they need to have a centralised data base where someone's personal bank history can be accesed, but generally, banks can only access to thier own account of a person excluding thier other financial commitments and past history of repayments or arriors with other lenders because it is against law or banks are very relectant to share the personal data of their customers to each other.

So there is need for a centralised data centre where THERE WILL BE A CREDIT SCORE CALCULATED based on the history of your financial activities be it the loan, credit cards, bank accounts, no of years you are being holding such account, repayments, missed payment, overdraft, mortgage accounts, its details, phone contracts, direct debit details, addresses you lived in the past and so on.

To fullfill the gap companies like experian, equiafax, and checkmyfile are emerged and they are offering one month free trial to check your credit history, also to clarify any missing data. Based on the above details of yours they calculate a generic value to asertain your repayment capacity.

Most of the lenders use two of the above companies to verify a credit history and score prior to sanction the loan, now a days major companies in the UK and US verify credit score of a prospective employee before making a job offer.

So it is vital to check and monitor your credit history, especially if you are planning to get a loan in a near future. click here to get a cashback for checking your credit history on trial basis, but make sure that you unsubscripe your account within the notice period if you don't want to continue with your credit history account on a continuos basis. But most of the credit history checking companies are very genuine to cancel the trial accounts.

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Courtesy: google pics.