3 Things About Loans

Taking out a loan is a common thing to do in the world we live in. Our society today has a hunger and a thirst for the best things in life. We take out a loan is seems for many purposes, buying a car, home improvements, consolidation, holidays and a lot more besides.

There are a very small section of people that would never take out a loan or a credit card but this number is very small. Loans in the world we live in today have many purposes and can allow us to get the things we want in life today and the majority of people have had the experience of taking out a loan for many different reasons and over differing lengths of time.

The traditional source of loans used to be via your own bank, or with collectors who came to your door like the provident. The world of finance has changed massively in the last 5 years and loans have also gone through a transition period with the internet making access to lenders and getting a loan easier and faster for everyone

The services that online companies offer in the world of loans, is very different from just going to the high street and trawling from bank to bank or popping into a building society to wait in a queue .With the internet you can view all the major loan providers and some whose name you may not know but may recognize the loan companies jingle or television advert. But with a few clicks of your mouse the world of finance and loans is literally at your fingertips.

With the internet the time taken to find the loans that will suit your need fully is much quicker. You can view each loans supplier’s rates, terms and products very quickly and quite easily. After all these company want to lend money and arrange loans with as many people as possible that fit their criteria, so they make the experience as simple and easy as possible so you get to find the loan you require in a shorter time. The application to the lender for your loan is also quick and easy and a more pleasant experience also evaluation by the lender can take a few minutes or at the maximum a few hours.

With the online services and loan suppliers available to you on the internet, you can process your loan enquiry from the comfort of your home or office.

So what else is there to know about loans, well they are really quite simple to understand as there are only two real types of loans secured or unsecured. With a secured loan you have to provide the lender with security, this is normally in the form of your home, and the lender takes a second charge on the property behind your mortgage lender. With an unsecured loan you do not have to offer the lender any security for your loan. Both types of loans have advantages and disadvantages and also unique features that can be made to fit your specific needs. So the basics are secured or unsecured loans.

But loans are also known globally by different names personal loans, motorcycle loans, car loans, caravan loans, home improvement loans, business loans, and holiday loans and that just a few. But they will all either be a secured or unsecured loan so if you require a loan or loans the internet could be your route to find the finance you require today and all at the click of your mouse.

All lenders have specific criteria and terms applicable to the loan your require but the finance and loan you require could be yours today.

How To Avoid Loan Sharks

If you have bad credit and are desperate for a loan, don’t make the mistake of using a loan shark. Although many people think loan sharks are a fantasy from Hollywood movies, there are many lenders out there that will rip you off and act as a loan shark. If you want to get yourself a loan but are not sure how to avoid these bad lenders, then here is some advice on how to avoid loan sharks

What is a loan shark?

In essence, a loan shark is a lender who targets people with bad credit and difficult financial circumstances and offers them loans are extremely high rates. By preying on people who think they cannot get a loan elsewhere, the lender makes large sums of money through the high interest rates. Contracts are usually very unfair and there are harsh penalties if the borrower defaults or misses payment. These so called loan sharks use a variety of techniques to make money off people unfairly.

Large loan fees

Loan sharks often charge large fees in addition to the interest, which are added to the total cost of the loan. The borrower is often not told in detail about these charges, and may not notice that they are paying a lot more money for no reason at all. These fees on predatory loans can be as much as 5% of the total loan amount. Another type of fee often charged is for early payment on the loan. A lot of good loans do not carry these penalties, but loan sharks can charge up to 6 months’ interest for early repayment.

High interest rates

The loan sharks target people who find it hard to get loans, and so for the ‘convenience’ of allowing them a loan they charge huge interest rates. These rates could be 3 or 4 times more than you might normally pay, and even if you have bad credit there is no need to pay this much. If you look around then you will see that there are competitively priced loans even for people with a poor credit history.

Letting you borrow too much

Loan sharks are not really bothered about your ability to pay a loan back, because they usually make contracts unfair and require security so that if you do not pay back, you will lose your home. That is why these lenders will let you borrow more than you can really afford. They are making so much from the fees and interest that if you default and they repossess your property they will still make money.

Avoiding loan sharks

These loan sharks target people who think they cannot get a loan another way. However, even people with poor credit can get a legitimate loan with decent rates and no hidden charges. To avoid being the victim of a loan shark, only use reputable companies when getting a loan, and always check the contract you are signing in detail. If you are unsure about a loan or lending company, then contact an independent financial adviser. If you shop around and remain aware of the dangers, you won’t become another victim of loan sharks and their predatory loans.