Lions and Loans: Why Finance Should Always be Personal

Different types of loans are available for almost every aspect of your life: personal loans, car loans, secured and unsecured loans, home loans, homeowner loans, student loans, graduate loans and career development loans (CDL). If you've suffered from credit problems in the past and now hold sub-prime characteristics, then you will be eligible for adverse credit and adverse loans.

You can always borrow money these days, but it is crucial to read the small print as the difference between interest rates is enormous and stories of people forced to pay off amounts which are five times the amount of their original loan are not uncommon.

There are also numerous stories on unemployed couples being sold loans, such as the case of Julie and Kevin Davies, reported by the BBC. The couple were already experiencing difficulty in paying off their existing debts of £4,000, when they were sold another £20,000 loan by Lloyds TSB.

Loans of £1,000 to £25,000 can be taken out and repaid over a period typically varying between six months and 10 years depending on your credit history and available finances. Loans are usually secured or unsecured. Secured loans are tied to your house, so you can be forced to sell the house if you are unable to make the repayments. Unsecured loans do not impose the same restriction, though a default on repayments may result in being "credit blacklisted". Once blacklisted, you may get future credit card, mortgages and hire purchase applications rejected, as well as face a potential higher rate of interest for all existing debts.

It is absolutely crucial that you shop around for a loan and not just through the high-street banks. The internet offers a wealth of information available and there are many sites which compare the prices of products, and to really ensure you get a good deal ? compare the different comparison sites. In the UK moneyfacts, moneyextra and ( moneynet ) offer price comparison services for a wide range of loans, amongst other financial products. These sites also offer consumer information guides, which you can either print directly off the website or download on to your computer.

Do read all the terms and conditions carefully and ask friends, family and your financial adviser / bank adviser if you don't understand a particular statement. The annual percentage rate (APR) is particularly important and can make a difference of thousands of pounds over the term of the loan.

Unsecured loans can be purchased from building societies and banks, as well as certain high street shops. Unsecured loans may be taken out for something specific or simply to make life more 'comfortable'. The process usually involves:

* Requesting a typical amount for the loan

* Discussion of interest rate (APR) and possible loan payment protection insurance

* A credit check, you may wish to get one of these first, so you know what to expect

* Reading the terms and conditions and then signing the agreement

* Money can then be transferred into your account

In the discussion of secured versus unsecured loans, moneynet explains that although secured loans can offer lower interest rates and repayments, many people do not wish to jeopardise the potential loss of their home in the default of a repayment of a secured loan. In unsecured loans, pay attention to the difference in APR, term of the loan and any additional charges such as an early settlement charge or redemption penalty.

Resources:
Mortgage and loan comparisons - Moneynet
Personal finance blog Cashzilla

About Rachel Lane:
Rachel writes for the personal finance blog Cashzilla:
Rachel is a disillusioned, disaffected and broke graduate, exploiting new media for financial therapy.

E-mail: rachel@positiveinterest.com or online@moneynet.co.uk

Phone: 0131 561 2251

---

High Risk Personal Loans ? Revive Frustrated Loan Hunting Attempts with High Risk Loans

Bad credit seems like an unfinished business, you can't shake... Read More

Is Getting A Personal Loan With Bad Credit Impossible? Think Again

A bad credit history is like having contracted an infectious... Read More

No Fax Payday Loans Online for a Fast Cash Advance Loan

For a fast cash advance loan, no fax payday loans... Read More

Alternative Ways to Avoid Payday Loan

If you spend more than you earn on a regular... Read More

Dos and Donts: Student loans

Parents should begin saving money early for their children's college... Read More

Want a Cheaper Finance for Your Vehicle? Try Secured Automobile Loans

The usual modus operandi in most automobile purchases is as... Read More

How to Get a Secured Loan UK

Living in the United Kingdom, you might find yourself in... Read More

Secured Personal Loans: Constructive Structuring for Financial Success

Credit relationships in a social system form an intricate web... Read More

Payday Loan Qualifications - What to Expect

Payday loan qualifications are different from other types of short-term... Read More

Try Unsecured Loans! If The Word Secured Doesn?t Fit Your Financial Statement

Big financial goals, no security to supply - it is... Read More

Shopping for a Secured Personal Loan

If you find yourself looking for a loan, you'll likely... Read More

Finding the Right Online Loan for You

If you're looking for an online loan, you might be... Read More

Should You Get A Pay Check Advance?

At some point in your working life, you may find... Read More

Personal Loans for Unemployed ? Liberating You from the Tangles of Unemployment

Like most of the contingencies (the after effects of unemployment... Read More

What Is A Personal Loan?

Personal loans can be divided into two categories: secured personal... Read More

Zero Zero Financing on Automobiles in Retrospect

Some say that the automobile industry saved the economy during... Read More

Applying For a Student Loan

Studying at college can be an expensive business and you... Read More

Traditional Banks Vs Online Loan Companies

In recent years obtaining loans online has become a new... Read More

Finding A Thin Credit Or No Credit Motorcycle Loan

It is no secret that thin or no credit can... Read More

Secured Loans Guide

Secured loans are becoming increasingly popular due to their flexibility.... Read More

Secured Business Loans ? Equipping Your Business Blueprint With Concrete Groundwork

Somebody once said, 'Business is not financial science; it's about... Read More

Why Choose an Unsecured Loan?

Why choose an unsecured loan? An unsecured loan can be... Read More

Car Loans for People With Bad Credit

Car loans for people with bad credit are readily available... Read More

What is a Car Loan?

A car loan is a type of credit offered by... Read More

Federal Housing Administration (FHA)

FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg.... Read More

A Look at Common Types of Loans

People sometimes wonder about common types of loans, especially with... Read More

Making Cars Accessible Through Secured Car Loans

Enervated by the hectic schedule at the work place, traveling... Read More

Refinancing Your Auto Loan

Refinancing your loan is one of the best kept secrets... Read More

Christmas Loans ? A Gift on the Occasion of Christmas

It is still a few weeks to Christmas and every... Read More

What is a Loan?

A loan is money that you borrow and agree to... Read More

Payday Loans or Cash Advance Loans - Useful After a Bankruptcy

Payday loans, also known as cash advance, are a useful... Read More

A Guide to Finding Fast Homeowner Loans

Sometimes finding fast homeowner loans can seem impossible? no matter... Read More

Why Choose a Bridging Loan?

Listed below are some of the reasons for choosing a... Read More