7 Things All Good Loan Companies Should Offer

Shopping for a loan can be a complicated and often worrying experience. After all, not only do you need to make sure that you’re borrowing enough money to help you purchase the item you need or get you through a difficult patch in your life, but you also need to take the time to ensure that the deal is good enough to prevent you from over-spending on interest in the future.

To find the very best loan, you’ll need to begin by searching for the best loan company or provider. As you may already know, not all financial providers out there offer the same solutions, so it’s important to have some key aspects in mind when you begin shopping around.

1. An Explanation of the Small Print

Before you begin applying for a loan, it’s important to make sure that you check all the small print surrounding the terms and conditions to make sure that you’re eligible. Some of the best purchases can come with pretty significant conditions. For instance, you might get a great rate on your loan, but you could find that you also have to pay additional fees and expenses alongside your interest rate too. If you’re unsure about any of the terms, make sure that you discuss them with your loan provider.

2. Pre-Qualification

Ideally, your loan provider should allow you to visit their website and get “pre-qualified” for a loan so that you can cut down on your concerns that you might not be able to afford your next big expense. During a pre-qualification, your lender should be able to perform something called a “soft credit check” which doesn’t affect your credit score. This is different from a full evaluation of your credit history which can leave a black mark on your record.

3. PPI, or the Option to Avoid It

Unfortunately, payment protection insurance has had some very bad press over the years. However, the truth is that it can be a useful product for some people. It’s intended to cover your monthly credit card payments or loan payments if you can’t meet them as a result of unemployment or sickness. If you think that you need this level of protection, it’s important to ensure that your provider offers it. Just remember to shop around for the best deal too.

4. Time to Shop Around

Remember, no lender should try to force you to sign up for a loan on the same day that you visit them to discuss terms and interest rates. Ideally, with your pre-qualified offers on hand, you should have the time to shop around and compare the amounts, monthly rates, and interest offered by different lenders in your area. Remember, you can also benefit by shopping for loans from credit unions and peer-to-peer lenders too.

5. An Opportunity to Borrow More for Less

In most circumstances, the larger the loan is, the lower the interest rate will be. Due to the strategies that some providers use to price their loans, there can be circumstances where you save money by borrowing a little more. Remember to talk to your lender about their lending options and find out whether spending a bit extra could be the best way to save some money in the long run. Of course, it’s also crucial to ensure that you’re not taking out a loan that you simply can’t afford too!

6. An Insight into Secured Loans

If you’re not sure whether to opt for an unsecured or secured loan, then your lender should be on hand to explain your options to you in depth. Remember, secured loans can be much cheaper than unsecured loans. However, you also run the risk of losing your home if you’re unable to keep up with the repayments. Secured loans are typically only offered to homeowners who have existing equity in their property. This means that the lender effectively takes over control of your property if you can’t make repayments.

7. A Path for Complaints

Finally, if you aren’t satisfied with the way that lenders are dealing with your loan in any way – for instance, you might think you’re being overcharged or poorly treated, then you should complain. Make sure that you follow the process to complain to your lender first. If you’re not satisfied with their response, you can take the issue to the Financial Ombudsman service instead. This group will be able to process the complaint further for you and help you to address the issue in a way that provokes a response from your loan provider.

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