How to save money on your personal loan
February 5, 2009
The “typical” loan rate you see might not be what you get. You may not always get the advertised typical APR on a personal loan. The rate you are given can depend on your credit rating, so always check this before applying for a personal loan, as the rate you end up getting could add to the cost of your monthly personal loan repayments.
Early repayment penalties can add to the cost of your personal loan. Paying off your personal loan early can save you hundreds of pounds in interest; but this can easily be wiped out if your personal loan provider charges you an early redemption fee. So check this out before you apply for the loan even if you don’t think you’ll repay the loan early, as most people do.
Payment breaks add to the cost of the personal loan. Many lenders will allow a break between when you receive your personal loan and when the first payment needs to be made, or will allow you to take a payment break during the personal loan term. Interest is charged during the payment break period, adding to the total interest payable.
Avoid unnecessary charges like “same day funds”. Some personal loan lenders offer same-day-funds facility which means you get your money on the same daythat you complete the application, but the fee for this service can be as much as £50, which becomes even greater if it’s added to the amount you borrow!
Never
Pay on time. Most personal loan lenders need a direct debit to pay the monthly installments on your personal loan, but make sure you have enough money in your current account to make the payment; otherwise the charges for missed payments can be as high as £38.
Avoid Payment Protection Insurance
You don’t have to take out Payment Protection Insurance. Many personal loan providers will offer Payment Protection Insurance (PPI) which will pay a percentage of your bill in the event of you being unable to work as a result of accident, sickness or redundancy. You are not obliged to take it, and you can even take it out separately if you find you need to. You can use our personal loan best buys to compare the cost of a personal loan with PPI and without PPI.
Use a 0% Credit Card for cheap loans
Providing you can make the purchase on a 0% credit card and will definitely pay it off before the 0% on purchases credit card deal ends that could be a better option.
Avoid TV Loans offers
Be even more careful with TV low monthly repayment personal loans. These secured loans advertised on TV are stretched over many years, meaning the debt is stretched over many years resulting in you paying more and more interest costing you a fortune.
Shorter the repayment periods
Less is more. Borrowing over a longer period can decrease the monthly repayments, but it massively increases the interest you’ll repay.
Personal Loans – Things to watch out for
February 5, 2009
personal loans tips
Personal Loans – Things to watch out for
Whether it’s unsecured personal loans or secured personal loans, there are a few little things to be watch out for when you are considering a personal loan.
Fees
Make sure you understand all the fees involved with your loan.
- Arrangement or set up fees are charged by some lenders right up front. For secured loans, these can be pretty hefty.
- Early repayment fees may also be payable particularly in the early years. If there’s a possibility that may be able to pay the loan off early it’s a good idea to understand these up front or take a loan which doesn’t charge these fees.
- Administration fees will be charged in the event of missed payments, so make sure you’ve always got enough in your current account to meet the monthly direct debit.
Monthly Repayment
Payment Protection Insurance
- Payment Protection Insurance (PPI) is designed to make sure you can make your loan repayments if you can’t work due to illness, accident or unemployment. PPI can be a valuable purchase if you buy the right policy.
- PPI is optional and you should shop around if you intend to take this insurance out. The policy your lender offers you might not be the best value, or the best quality of cover.
- Most PPI policies bought from the lender are paid for by a lump sum premium which is added to your loan. So you pay interest on the premium and may not get a full refund of the premium if you repay early
- Don’t buy the PPI the lender offers you. It can be a valuable insurance to have, so go to an independent broker who can get you a better product which is suitable for your needs.
Tips for current account online
February 4, 2009
There are several ways of making the most of your current account:
- Interest rates: Always shop around for the best interest rates, and look out for high charges on overdrafts and other services.
- Bank charges: Check what the authorised and unauthorised overdraft fees are to avoid paying over the odds if you go into the red. Banks will charge you a fee as high as £25 if a cheque or standing order bounces due to insufficient funds in your current account.
- Free Gifts: Some current accounts offer extras, such as free cash, a bonus interest rate, or breakdown cover on your car.
Water Saving Tips
February 4, 2009
Top Tips for water saving:
- Turn off the tap when brushing your teeth. Keeping it running can waste around 6 litres per minute
- Have a shower instead of a bath, it uses a 1/3 of the water
- Install a water meter which makes you more aware of how much you are using.
- Only fill the kettle to the amount you need, saving both water and electricity.
- Choose water efficient toilet – look for loos with a short and a long flush.
- Don’t use your washing machine / dishwasher until you have a full load.
- Buy simple water saving devices like Water Saving Showerhead & water butt
tips when choosing a mortgage online
February 3, 2009
Consider the tips below before choosing your mortgage online.
Calculate what loan you can afford
It’s crucial that you calculate how much you want to borrow, and how much you can physically afford. Under no circumstances should you agree to a loan that you will not be able to or struggle to repay.
Beware of Hidden Fees
When choosing a mortgage, you should always look at the percentage fees attached to the product.
Consider the Upfront Fees
Think about how you plan to pay all of the associated costs with the mortgage. Some mortgage lenders will ask for the set-up fees upfront, whilst others will add them into the cost of your loan.
Consider redemption penalties
Many mortgage deals will tie you in for an agreed amount of time, which means that if you exit the deal early you will be hit with a redemption penalty. Make sure you are aware of how long you are tied in for, and think about how your circumstances may change over the period. Early redemption penalties can be very high, and you don’t want to incur any more charges than you have to.
Exit fees
Once your mortgage deal ends, you need to check to see what fees you will be charged if you want to change to another lender. Some lenders will fix the exit fee at the outset, but unfortunately most can still charge what they want.
Flexibility
Depending on your circumstances, you may suit a mortgage that allows you to overpay, underpay or take payment holidays. You can then fit your mortgage payments to suit your needs.
Look for Free Mortgage Incentives
Some mortgages will include incentives such as a free legal fees or free valuation.
Before applying for a loan online read our loans tips
February 3, 2009
Be realistic
- Never borrow more than you can afford to pay back each month.
- Never apply for more than one loan at a time.
- If you can afford to pay back a loan over a short period do so. You’ll pay far less interest.
There are 2 main loan types available for borrowers:
Unsecured personal loans
This loan type is repaid each month with added interest, which is usually fixed. You’re not required to offer any security to the lender such as your home. If you default on payments the provider will need to take you to court to recover the debt.
Secured homeowner loans
This loan type is a personal loan which is secured by a second charge on an already mortgaged property. These loans need to be entered with great care. If you fail to repay the debt, you could lose your home.
APR (Annual Percentage Rate)
Your loan will have an APR, which is the Annual Percentage Rate. The APR will include not just the loans interest rate, but also any additional set up charges showing the true cost of the loan. Before entering into any loans agreement, please make sure you know and understand all the facts about the deal.
Consider Insurance
If you fall ill or lose your job you’ll still need to repay your loan, so consider taking out loan insurance to cover your payments.
Best mortgage tips online
February 3, 2009
mortgage tips
Always compare mortgage online
It much easier to compare mortgage online with online tools and features.
it helps to assess each one in comparison with others because you learn to appreciate the really important aspects. In a woman, that would be how she responds to your occasional public faux-pas; in a mortgage, it could be how easy-going it is when you fail to make a payment. Always compare.
Go shopping
Again, it’s easier to be certain you’ve found the right woman if you’ve seen what’s available – so it is with mortgages. Allow a little competition to creep in – tell one lender about the great deal you’ve been offered by another, and you’ll be surprised at what they might offer.
Look to the future
How will this relationship develop in the future? Will your mortgage become a deadweight around your neck? Very low rates often come with strict tie-ins, meaning you’re married for life.
Beware of hidden fees
If you leave the mortgage company, will they penalise you with a fee? You need to check this before you sign up. It might not seem so important now, but who knows how you’ll feel about the lender after years of abuse?
Be honest
Tell your lender or financial adviser exactly what your financial situation is – they’ll get you the best deal for you, rather than get you into bed with a lender who’ll screw you over.
Tips for Protecting Againist Online Credit Card Fraud
February 3, 2009
Never Give Out Your Details
Never ever enter your credit card details via strange websites or emails. There are emails / websites that look very similar to the real source designed to steal credit card details. Only enter your details at the official credit card website
Protect Your PC Against Credit Card Fraud
The first line of defence against credit card fraud must be the latest Internet Security Software. Quality Internet security software will protect against hackers, trojans & virus. This will stop hacker and criminals stealing bank login details.
Our recommendation for Quality Internet Security Software:
Strong Credit Card Passwords
Your online credit card account should be kept safer by having unique strong username and password.
Use the guide below to choose a strong password:
- Combine letters, numbers, and symbols like Hello!1
- Make it lengthy – 8 +
- Use words and phrases that are easy for you to remember, but difficult for others to guess
Shop with Secure Websites only.
When shopping online, it is best advised to shop with websites that you feel are safe and secure. It is best to use well-known payment method/gateway or third parties such as WorldPay or Paypal.
Do a Credit Check
Viewing your credit check online allows you to double check any fraudant activites under your name.
