3 Tips to Compare Smart Loans in UK

Created: 2016-11-05 07:00:00

There are conventional and unconventional ways of comparing smart loans in UK. The conventional way requires you to compare the loan amounts, rates of interest, repayment terms and additional charges. In all approaches, you must study the clauses as laid out in the agreement from the lender. The unconventional way is to try out new lenders and sign up for loans that are not strictly within the realm of traditional short term loans. For instance, you can go for payday loans and other types of unsecured loans, which are really helpful if you don’t have a great credit history.

Here are three tips for you to compare smart loans in UK.

When you compare loan amounts, do so bearing in mind the eligibility, rate of interest and repayment term. Do not compare loan amounts in isolation. It doesn’t help if a lender agrees to lend you more but at a higher rate of interest. You must factor that in before you make a decision.

Just as the loan amount influences the rate of interest to an extent, the repayment term will also affect the interest and the loan amount. Some lenders of smart loans in UK will not be willing to lend you more than a certain amount if you wish to repay at once or if you want a very long repayment term. The rates of interest can go up or down based on these factors. You should try to compare loans holistically and not every element in isolation.

The repayment term should be assessed based on your own affordability and not because the lender is willing to grant you a certain time. If you are fine with one month then so be it and if you need two years then don’t try to squeeze the repayment into a year. It is better to repay early with accumulated savings than to falter because you are stressing your monthly finances.

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk