We are an Introducer Appointed Representative of Quint Group Limited, who are a credit broker, not a lender. OinkMoney.com Introduces customers to Monevo Ltd who are an Appointed Representative of Quint Group Ltd for the purposes of obtaining a loan. Oink Money does not provide any loan or consumer credit products directly.
Thursday 18th of January 2018
Looking for a loan can be a prospect which fills many first time borrowers with dread. A quick online search can leave you scratching your head whilst trying to familiarise yourself with many new terms and figures. There are several factors to consider when you are contemplating taking out a loan. With many different lenders now offering the still somewhat novel concept of pay day loans, it can be difficult to decide which option is the best for you. We hope that this article will help you feel more prepared than puzzled when it comes to interest rates, repayments and borrowing terms. Here are our top six tips to finding and securing the best loan for you.
Firstly it is important to make sure that you know what your requirements are. How much money do you want to borrow? How long do you anticipate it will take for you to pay the loan back? Applying for a small loan to tide over expenses for a couple of weeks is very different to taking out a large loan which you anticipate could take a longer of period of time to repay. It is important to make sure that you research the different options that are available to you.
Creating a budget may help you to narrow your requirements further. Consider your monthly income and your current outgoings including household bills and other credit repayments. This should give you a clearer idea of how much money you can afford to repay. You may also find that through analysing your current spending you are able to make savings which could result in you borrowing a smaller amount than originally anticipated.
The best loan is the loan that meets the specific set of requirements that you have. If a lender is unable to match your desired loan sum or repayment periods, do not feel pressured to accept their offer.
Your credit score gives lenders a snapshot into your borrowing past and shows them how likely you are to pay any future credit back. This information allows lenders to evaluate the risk of lending money to a particular applicant and often determines whether a loan application is successful or not. The higher your score the more likely you are to secure a loan and the better your chances of being offered a lower interest rate. Credit reporting companies enable users to check their credit history and find out their score. There are also a number of third party solutions available such as Credit Angel, which enables you to see the data held by credit reference agencies and will give you a snapshot of how you'd be presented to a lender, if you were to apply for a loan.
Some people may find it more difficult to secure a loan including those with a poor credit score and those with no credit history. If you have previously borrowed money and missed repayments or have filed for bankruptcy in the past then you may have problems acquiring credit. First time borrowers may struggle to find a lender due to having no significant credit history for example never using a credit card or taking out a loan before. You could still be offered a loan but it may be a smaller sum or a loan at a higher interest rate.
There are several ways that you can improve your credit score. Simply by being on the electoral roll is likely to have a positive effect on your credit score so make sure you complete the relevant paperwork and return to your local authority when prompted to! Try to space out your applications for credit. Each application for credit will leave its mark on your credit history and repeat rejections for credit could lead future lenders to follow suit.
When you do receive credit make sure to keep up with your repayments to avoid further issues with a bad credit score in future. Steady and prompt repayments will help to rebuild a previously bruised credit history.
With interest rates ranging from 200% to well over a whopping 1000% it is important to always remember to check the APR and interest rates that you are offered! Interest is a massive factor in determining the size of your repayments. A poorly researched pay day loan with a high APR could lead to further problems down the line due to unmanageable repayment charges. This being said, the APR is not always a good indication of how expensive the loan is and the term of the loan should be factored into the equation when using the APR to compare. Before signing any paperwork make sure you look at the final amount stipulated in the contract. This total amount will be calculated on the APR you have been offered and should give you an indication as to whether the loan is an affordable option in the long term.
It can be tempting to click through the more tedious fine print when applying for your loan but your oversight could lead to unexpected fines and charges. Hidden in the terms and conditions you may find conditions such as higher interest penalties for late repayments or a negative impact on your credit score. If you are confused by any details included in the fine print then contact the lender for clarity as to exactly what these terms mean and what impact they could have in the future.
There are a number of comparison services available which make it simple for you to find the best loan deals. You should also consider the time it will take to fill in numerous application forms, should you be declined on more than one occasion. Many lenders offer simple application forms which mean you can now apply using your mobile while on the move.
As mentioned earlier, knowing your requirements and sticking to them is key. If you are considering taking out a smaller loan for a short period of time then it is advisable to find a lender who can meet these conditions. A longer borrowing period could result in you paying back a higher amount due to accumulating interest charges. On the other hand, agreeing to a borrowing period which you cannot meet could result in you failing to meet your repayments and result in other penalties.
In order to offer finance in the UK all lenders must be approved by the Financial Conduct Authority (FCA). The FCA are the conduct regulator for UK based financial services and financial markets. The FCA are responsible for issuing lenders with an FCA authorization number without which they are not able to offer finance to UK borrowers. Before signing up for a loan check that the lender has been authorised by the FCA. The simplest way to do this it to check on their website – this information is usually included in the footer of their home page. Without FCA authorisation the lender would be operating illegally and in this instance you should voice your concerns to the FCA.
Hopefully this post has helped alleviate some of the stress of being a first time borrower with providing you with some key points to consider when researching your loan. Remember to only borrow what you feel you can realistically repay and if you do find yourself struggling with repayments consider contacting The Money Advice Service (https://www.moneyadviceservice.org.uk).
OinkMoney.com Introduces customers to Monevo Ltd who are an Appointed Representative of Quint Group Ltd for the purposes of obtaining a loan. Oink Money does not provide any loan or consumer credit products directly. We do not make short term loan or credit decisions.
We do not charge any fees. If you are contacted by anyone saying they are calling from Oink Money requesting you make them a payment, you should report this to www.actionfraud.police.uk immediately. We will never contact you asking for a payment.
*The loan amount and interest rate you are offered are subject to lenders requirements and approval. If accepted by a lender, a full credit check will be carried out. If Monevo are unable to find you a loan, they may offer you an alternative product. The time it takes for the funds to appear in your account may take longer, and will depend on your bank and the lender's own policies and procedures.