Christmas loans are always offered when we reach this time of the year. Everywhere you go you find Christmas loan advertisements featuring special terms that are hard to find any other time of the year. However, not everybody knows what Christmas loans are really about and what is so interesting about them.
Following is a brief explanation of why Christmas loans are your best choice of financing during these holidays.
When you are looking for financing, there are different loan conditions that you may be focusing on: the interest rate on the loan, the repayment program or maybe the amount of the monthly payments. Christmas loans feature very advantageous figures on all these loan terms and conditions. And that is the main reason why Christmas loans are so popular.
Lenders Competing For You
At this time of the year the demand for personal loans is very high but fortunately, all lenders jump to the market voraciously wanting to obtain the biggest share possible and thus, they compete vigorously by featuring more and more valuable Christmas loan offers. That is the main reason why you can obtain such advantageous terms on Christmas loans; because the lenders are competing for you.
So what can you expect of Christmas loans? Simple: these loans feature lower interest rates that common unsecured loans, credit cards, payday loans and other short term, non secured forms of financing and they also feature lower payments thanks to the flexible repayment schedules that you can choose. All in all, Christmas loans provide many benefits for the applicant and some of them even offer grace periods so you won’t have to start repaying the loan till two or three months later, the following year.
Christmas Loans Terms and Conditions
As explained above, Christmas loans feature very advantageous terms but the interest rate is not the only thing that can be highlighted on Christmas loans. The rest of the loan conditions are also optimized both for the season and for the type of applicants that require these loans. Therefore, by applying for a Christmas loan you will get flexible repayment schedules that can last up to a year or more (compared to pay day loans and other short term unsecured personal loans, this is a great improvement), you can also get minimum monthly payments that are very easy to afford and most importantly, you can get fast approval without delays or hassles and sometimes even without credit checks or long verifications.
Secured or Unsecured?
For obtaining Christmas loans you don’t need to pledge any form of collateral. Christmas loans are unsecured personal loans and though secured loans are available during Christmas season with promotional interest rates and other advantageous terms, what most lenders offer during these holidays is an unsecured personal loan that they call Christmas loans for advertising purposes and to differentiate them from the other unsecured personal loan products that they usually offer. Summing up and as you can see, Christmas loans are great because they offer better terms on one of the most wanted financial products in the market.
Source:http://www.americanchronicle.com/articles/
Thursday, November 29, 2007
Wednesday, November 28, 2007
Unsecured Loans- loans without collateral
Granted on the basis of the credit worthiness of the borrower, unsecured loans may call for a higher rate of interest than the secured loans. But, when there is no security to offer, unsecured personal loans are the best borrowing options that can get you the required funds.
Many a times, financial crisis makes it difficult for the life cycle to move smoothly. This is the time when we look for loans. We can either pledge our house and get the required loan amount and repay it in monthly installments. But, what if we don't possess a home or don't want to risk it? In these events, unsecured loans are the most viable options. These loans give the borrower the liberty to raise funds without placing any security. Unsecured loans are not guaranteed with any asset, so the risk of repossession doesn't exist. Though, the lender can still take a legal action and sue the borrower in the court of low, in case he defaults on the repayments. Unsecured loans are more expensive than their secured counterpart because it has greater risk for the lender.
Unsecured loans essentially have the features cited below.
So, unsecured loans have its pros and cons like other loans. One should analyse everything logically, keeping one's financial requirements and credit profile in mind and thereby, compare unsecured loans and apply for the best.
Source:http://www.articlesalley.com/
Many a times, financial crisis makes it difficult for the life cycle to move smoothly. This is the time when we look for loans. We can either pledge our house and get the required loan amount and repay it in monthly installments. But, what if we don't possess a home or don't want to risk it? In these events, unsecured loans are the most viable options. These loans give the borrower the liberty to raise funds without placing any security. Unsecured loans are not guaranteed with any asset, so the risk of repossession doesn't exist. Though, the lender can still take a legal action and sue the borrower in the court of low, in case he defaults on the repayments. Unsecured loans are more expensive than their secured counterpart because it has greater risk for the lender.
Unsecured loans essentially have the features cited below.
- The sum of money granted by the lending institution is not secured by any collateral
- The lender gives the loan solely on the basis of credit worthiness of the borrower
- The lender conducts a thorough credit check to evaluate the paying ability of the borrower by scrutinising his past records
- The loan amount can vary anywhere in between 500 to 25,000 pounds.
- The loan tenure ranges from 6 months to 10 years
- The rate of interest is higher than the secured loans because the lender compensates for the risk involved for him
- The processing of unsecured loans is quick because of the elimination of legal formalities concerning property evaluation etc.
- Unsecured loans call for less documentation since property papers are not involved
- In case of default on repayment, the lender can sue the borrower in the court and a CCJ (Country court judgment) may be issued against the borrower.
So, unsecured loans have its pros and cons like other loans. One should analyse everything logically, keeping one's financial requirements and credit profile in mind and thereby, compare unsecured loans and apply for the best.
Source:http://www.articlesalley.com/
Tuesday, November 27, 2007
A secured loan offers an affordable option
Secured loans have become increasingly popular in the UK over recent years, with many homeowners deciding to make the most of their increasing equity levels by taking out this type of loan.
A secured loan provides a very effective solution when it comes to affordable borrowing, and you will find a wide range of lenders that are able to offer this type of loan.
As with any loan it is important to ensure that you can afford the repayments on your borrowing, and with a secured loan this is even more important, as otherwise you could face severe consequences.
It is very important to give the matter plenty of consideration before you take out a secured loan, as this is a long term, important financial commitment that cannot be taken lightly. There are a number of commonly asked questions relating to secured loans, and some of these include:
What exactly is a secured loan?
A secured loan is a loan that is secured against your property, and therefore this type of loan is only available to homeowners. The loan is usually secured against the equity in your home.
There are many lenders that offer secured loans these days, and this type of loan has become increasingly popular as property prices have rocketed over the past few years.
How much can you borrow with a secured loan?
The borrowing levels offered with secured loans are generally far higher than those offered with unsecured loans. The actual amount that you will be eligible to borrow will depend on a number of factors, and this includes your income and outgoings, your credit rating, and employment status, and your equity levels.
What is equity and how much of your equity can you borrow against?
Your equity can be worked out easily. You simply need to find out the market value of your property and then deduce any outstanding mortgage or secured loan balances. The amount left is the equity in your property, which is the amount that you would receive if you were to sell the property at that time.
Some lenders will enable you to borrow up to a certain percentage of your equity; some will allow you to borrow the full amount of your equity; and some will let you borrow over and above your equity levels. This can vary from lender to lender, so you do need to check to see which lenders offer the most appropriate borrowing levels for your needs.
What sort of repayment periods are offered with secured loans?
The repayment periods offered with secured loans are generally much longer than those offered with unsecured loans. In many cases secured lenders will offer repayments terms of between three and twenty five years, but you may find some lenders that offer even longer repayments periods.
Your age may determine the maximum repayment period that you can get, and the repayment periods available can vary from lender to lender.
What sort of interest rate will be charged?
The typical APR on many secured loans can be quite competitive, but the actual interest rate that you will be charged will depend on a number of factors.
This includes your credit rating and the amount that you borrow. The interest rates charges can vary widely from one lender to another, so it is strongly advisable to take the time to compare and find the most competitive interest rate for your circumstances.
What can secured loans be used for?
A secured loan can be used for pretty much any purpose depending on your needs. This includes consolidation of existing debts, carrying out home improvements, paying for a luxury holiday or car, funding a wedding, paying for an education, or any other purpose.
What are the main benefits of a secured loan?
There are a number of benefits that come with a secured loan. Increased borrowing power means that you have a better chance of raising the money that you need. Longer repayment periods mean that you can spread the loan over a longer term, thus keeping your repayments down.
Also, secured loans are often available to people with bad credit because of their secured nature, which means that even those that cannot get unsecured credit because of their poor credit rating may still be eligible for a secured loan.
Are there any risks involved with secured loans?
Yes, and it is important to take these into consideration before you make any commitment. The major risk that has to be considered with this type of loan is that it is secured against your home, which means that if you default on your repayments you could risk losing your home.
It is therefore imperative that you ensure that you can afford this type of loan before you make any commitment otherwise you could find yourself without a roof over your head. Another risk that you need to consider is that if you are borrowing against the equity in your home you could find yourself tied into negative equity in the event that house prices then fall, and you could owe more on your property than the property is actually worth.
Source:http://www.thriftyscot.co.uk/money/112007/a-secured-loan-offers-an-affordable-option.html
A secured loan provides a very effective solution when it comes to affordable borrowing, and you will find a wide range of lenders that are able to offer this type of loan.
As with any loan it is important to ensure that you can afford the repayments on your borrowing, and with a secured loan this is even more important, as otherwise you could face severe consequences.
It is very important to give the matter plenty of consideration before you take out a secured loan, as this is a long term, important financial commitment that cannot be taken lightly. There are a number of commonly asked questions relating to secured loans, and some of these include:
What exactly is a secured loan?
A secured loan is a loan that is secured against your property, and therefore this type of loan is only available to homeowners. The loan is usually secured against the equity in your home.
There are many lenders that offer secured loans these days, and this type of loan has become increasingly popular as property prices have rocketed over the past few years.
How much can you borrow with a secured loan?
The borrowing levels offered with secured loans are generally far higher than those offered with unsecured loans. The actual amount that you will be eligible to borrow will depend on a number of factors, and this includes your income and outgoings, your credit rating, and employment status, and your equity levels.
What is equity and how much of your equity can you borrow against?
Your equity can be worked out easily. You simply need to find out the market value of your property and then deduce any outstanding mortgage or secured loan balances. The amount left is the equity in your property, which is the amount that you would receive if you were to sell the property at that time.
Some lenders will enable you to borrow up to a certain percentage of your equity; some will allow you to borrow the full amount of your equity; and some will let you borrow over and above your equity levels. This can vary from lender to lender, so you do need to check to see which lenders offer the most appropriate borrowing levels for your needs.
What sort of repayment periods are offered with secured loans?
The repayment periods offered with secured loans are generally much longer than those offered with unsecured loans. In many cases secured lenders will offer repayments terms of between three and twenty five years, but you may find some lenders that offer even longer repayments periods.
Your age may determine the maximum repayment period that you can get, and the repayment periods available can vary from lender to lender.
What sort of interest rate will be charged?
The typical APR on many secured loans can be quite competitive, but the actual interest rate that you will be charged will depend on a number of factors.
This includes your credit rating and the amount that you borrow. The interest rates charges can vary widely from one lender to another, so it is strongly advisable to take the time to compare and find the most competitive interest rate for your circumstances.
What can secured loans be used for?
A secured loan can be used for pretty much any purpose depending on your needs. This includes consolidation of existing debts, carrying out home improvements, paying for a luxury holiday or car, funding a wedding, paying for an education, or any other purpose.
What are the main benefits of a secured loan?
There are a number of benefits that come with a secured loan. Increased borrowing power means that you have a better chance of raising the money that you need. Longer repayment periods mean that you can spread the loan over a longer term, thus keeping your repayments down.
Also, secured loans are often available to people with bad credit because of their secured nature, which means that even those that cannot get unsecured credit because of their poor credit rating may still be eligible for a secured loan.
Are there any risks involved with secured loans?
Yes, and it is important to take these into consideration before you make any commitment. The major risk that has to be considered with this type of loan is that it is secured against your home, which means that if you default on your repayments you could risk losing your home.
It is therefore imperative that you ensure that you can afford this type of loan before you make any commitment otherwise you could find yourself without a roof over your head. Another risk that you need to consider is that if you are borrowing against the equity in your home you could find yourself tied into negative equity in the event that house prices then fall, and you could owe more on your property than the property is actually worth.
Source:http://www.thriftyscot.co.uk/money/112007/a-secured-loan-offers-an-affordable-option.html
Monday, November 26, 2007
Bad Credit Unsecured Personal Loans for Unemployed!
If Bad Credit makes it almost impossible for someone to get a loan, having bad credit while at the same time being unemployed doesn’t seem to be very auspicious. However, there are financial solutions for people with this kind of problem and you shouldn’t despair if you find yourself in such situation.
Being unemployed is a huge burden itself, having plenty responsibilities to attend to and not being able to support the family and look out for it’s needs can be a very stressful situation. The problem is where to get finance while in search of a new work to regain a steady income.
Moreover, this situation tends to make the unemployed doubt to use his house (if he is a homeowner) as collateral due to the risk of repossession. He doesn’t know when he will be able to have enough earnings to repay the secured loan without sacrifices so, his doubts are understandable.
Unsecured Bad Credit Unemployment Loans
This is when unsecured unemployment loans help going through this situation. These loans are meant for those who have lost their job and need to get a loan to pay for everyday expenses while they focus on getting another job and returning to their normal life. Even if it is long term unemployment, there are loans available to cover for it.
The main issue when it comes to unsecured unemployment loans is the loan repayment. The lender will focus on the requirement of providing a loan repayment source. This happens because there is no collateral securing the loan so there is a high risk involved for the lender.
Nevertheless, there are many sources to hold up repayment: Disability living allowance, other allowances, income support, and redundancy pay from the employer. You might as well offer a co-signer which will greatly improve your chances of getting the loan approved.
This kind of loans can also provide a grace period in which you won’t have to pay any installment. The idea is that during this period you can concentrate on getting a new job which is the source of income lenders prefer. Knowing that an unemployed person can have unstable jobs for a period of time, these loans usually include the possibility to request a stand-by period even when the repayment has already started.
Interest Rate and Purpose
The interest rate on this kind of loans is an issue for they are high risk loans; the interest rate tends to be very high. However someone who is looking for this kind of loan should contact as many lenders as possible and ask them to provide loan quotes. After comparing them, the decision will be much easier. The best source of information on this kind of bad credit loan is the internet. By doing a search online you’ll be able to find many financial sources dealing with this kind of loans.
Summing up, these loans are for emergencies, it’s not a permanent source of finance and thus should be repaid as soon as possible. However, in such a desperate situation, it’s good to know that the finance industry has created a solution that allows those who are unemployed and have bad credit to get finance to meet their daily needs.
Being unemployed is a huge burden itself, having plenty responsibilities to attend to and not being able to support the family and look out for it’s needs can be a very stressful situation. The problem is where to get finance while in search of a new work to regain a steady income.
Moreover, this situation tends to make the unemployed doubt to use his house (if he is a homeowner) as collateral due to the risk of repossession. He doesn’t know when he will be able to have enough earnings to repay the secured loan without sacrifices so, his doubts are understandable.
Unsecured Bad Credit Unemployment Loans
This is when unsecured unemployment loans help going through this situation. These loans are meant for those who have lost their job and need to get a loan to pay for everyday expenses while they focus on getting another job and returning to their normal life. Even if it is long term unemployment, there are loans available to cover for it.
The main issue when it comes to unsecured unemployment loans is the loan repayment. The lender will focus on the requirement of providing a loan repayment source. This happens because there is no collateral securing the loan so there is a high risk involved for the lender.
Nevertheless, there are many sources to hold up repayment: Disability living allowance, other allowances, income support, and redundancy pay from the employer. You might as well offer a co-signer which will greatly improve your chances of getting the loan approved.
This kind of loans can also provide a grace period in which you won’t have to pay any installment. The idea is that during this period you can concentrate on getting a new job which is the source of income lenders prefer. Knowing that an unemployed person can have unstable jobs for a period of time, these loans usually include the possibility to request a stand-by period even when the repayment has already started.
Interest Rate and Purpose
The interest rate on this kind of loans is an issue for they are high risk loans; the interest rate tends to be very high. However someone who is looking for this kind of loan should contact as many lenders as possible and ask them to provide loan quotes. After comparing them, the decision will be much easier. The best source of information on this kind of bad credit loan is the internet. By doing a search online you’ll be able to find many financial sources dealing with this kind of loans.
Summing up, these loans are for emergencies, it’s not a permanent source of finance and thus should be repaid as soon as possible. However, in such a desperate situation, it’s good to know that the finance industry has created a solution that allows those who are unemployed and have bad credit to get finance to meet their daily needs.
Sunday, November 25, 2007
Personal loans and financial life
Money is an integral part of financial life. Without funding works only selected financial paralyzed, as he lives, but was unable to do things that are necessary to their needs. Persons who do not have value for creditors, in order to ensure that resources are more than likely not be denied. In this perspective, both inside and outside the congestion control of the financial assistance, the take-credit course, with more fitness in the face of unsecured loans. These loans are without any sort of pledging placing.
Renters are one of the main groups of borrowers at the national level, such loans. But they were not happy, those of their co-owners. While owners are not loans without collateral to choose the form as soon as possible to deny that the houses fixed loans to save their homes.
There are a multitude of lenders available across the financial market of the country and the requirements of the borrowers are bound to match offers by some lenders Applying for unsecured forms of these loans is quite easy and convenient. Now, you do not have to look out for lenders and visit them personally to make the deal. The whole loan process is now carried easily with the help of internet.
Unsecured loans approved, in general, faster than the Secured loans. Most of the time, which, with the agreement of loans are guaranteed when assessing the property. As there is no guarantee is required, there is no need for the property. Thus, non-credit borrowers quickly.
The functions of a number of non loans, but also:
The amount varies £ 5000-£ 25000
From exploiting the period of 5 to 10 years
Suitability of the next line or off-line
Amount sanctions may invest as long as the creation of enterprises, improvement of housing, education for children, medical emergencies, debt consolidation.
Renters are one of the main groups of borrowers at the national level, such loans. But they were not happy, those of their co-owners. While owners are not loans without collateral to choose the form as soon as possible to deny that the houses fixed loans to save their homes.
There are a multitude of lenders available across the financial market of the country and the requirements of the borrowers are bound to match offers by some lenders Applying for unsecured forms of these loans is quite easy and convenient. Now, you do not have to look out for lenders and visit them personally to make the deal. The whole loan process is now carried easily with the help of internet.
Unsecured loans approved, in general, faster than the Secured loans. Most of the time, which, with the agreement of loans are guaranteed when assessing the property. As there is no guarantee is required, there is no need for the property. Thus, non-credit borrowers quickly.
The functions of a number of non loans, but also:
The amount varies £ 5000-£ 25000
From exploiting the period of 5 to 10 years
Suitability of the next line or off-line
Amount sanctions may invest as long as the creation of enterprises, improvement of housing, education for children, medical emergencies, debt consolidation.
Be Better Equipped To Get Competitive Personal Loans
There are many lenders in the UK loan market. A borrower needs to ensure a competitive loan deal. For this purpose, you can compare personal loans available with different lenders before making any final decision.
The financial market goes through a lot of changes within a short period of time. If there are some loan products available now, these may be discarded and new products may hit the market to match the prevailing market conditions. Thus, the financial market is very dynamic in nature.
Even the pattern of consumer spending may bring a change in the lenders' policies. A borrower should keep himself abreast of the latest developments and trends taking place in the financial market. The Internet is a very good source of information and the good thing is that many of the reputed lenders are available online. You can place requests online and get information on any product that they are offering.
Personal loans are basically unsecured. You do not need to pledge your home; even tenants are eligible for these types of loans. The interest rate is on the higher side but if you carry out research and compare personal loans as available with different lenders, a competitive deal can be clinched.
How to compare personal loans?
Apply with several lenders and request them to send online loan quotes. Compare personal loans on the basis of the APR quoted by different lenders. It will help you in finding better loan deals. Besides, you can take help from price comparison websites. These sites offer comparative data in case of many products. The loan products are one of them. The data is available without any cost as these websites charge only from the sellers of the products.
People use personal loans according to their own requirements. A research reveals that some of the most compelling reasons for taking personal loans are debt consolidation, vehicle purchase and home improvement. The repayment period depends on several things including the lender's policy, your credit history and your repayment capability. So, apply online and enjoy the benefits of personal loans.
source:http://www.bestsyndication.com/?q=112407_cheap_loans.htm
The financial market goes through a lot of changes within a short period of time. If there are some loan products available now, these may be discarded and new products may hit the market to match the prevailing market conditions. Thus, the financial market is very dynamic in nature.
Even the pattern of consumer spending may bring a change in the lenders' policies. A borrower should keep himself abreast of the latest developments and trends taking place in the financial market. The Internet is a very good source of information and the good thing is that many of the reputed lenders are available online. You can place requests online and get information on any product that they are offering.
Personal loans are basically unsecured. You do not need to pledge your home; even tenants are eligible for these types of loans. The interest rate is on the higher side but if you carry out research and compare personal loans as available with different lenders, a competitive deal can be clinched.
How to compare personal loans?
Apply with several lenders and request them to send online loan quotes. Compare personal loans on the basis of the APR quoted by different lenders. It will help you in finding better loan deals. Besides, you can take help from price comparison websites. These sites offer comparative data in case of many products. The loan products are one of them. The data is available without any cost as these websites charge only from the sellers of the products.
People use personal loans according to their own requirements. A research reveals that some of the most compelling reasons for taking personal loans are debt consolidation, vehicle purchase and home improvement. The repayment period depends on several things including the lender's policy, your credit history and your repayment capability. So, apply online and enjoy the benefits of personal loans.
source:http://www.bestsyndication.com/?q=112407_cheap_loans.htm
Saturday, November 24, 2007
The best way to use an unsecured loan
Unsecured loans have become very popular over the years, and every year many people decide to take out one of these loans for one of a range of purposes. People use unsecured loans for all sorts of reasons, ranging from consolidation of smaller debts such as credit and store cards to a well deserved holiday, a new car, funding a wedding, paying for education, funding Christmas, and more.
You can use an unsecured loan for pretty much any purpose, and these loans provide an effective way of borrowing for many people.
As with any type of finance when you take out an unsecured loan you need to ensure that you can keep up with repayments, as defaulting on repayments could result in your credit rating getting damaged, which could impact heavily on your financial future in terms of being able to get any sort of finance in the future.
No matter what sort of finance you are thinking of taking out you should always give careful consideration before making any commitment, and unsecured loans are no different. There are a number of commonly asked questions that can help you to learn more about this type of loan, and this includes:
What is the difference between an unsecured and a secured loan?
An unsecured loan is a loan that is based on contract and is not secured against any asset, hence its name. Therefore you will not risk any of your assets when you take on an unsecured loan.
A secured loan on the other hand is secured against an asset, which is usually the home, and therefore borrowers could be putting their homes at risk if they default on repayments on a secured loan.
Who is eligible to take out an unsecured loan?
An unsecured loan is available to both homeowners and non-homeowners, unlike a secured loan, which is only available to homeowners because it is secured against the home.
The lending criteria operated by the lender will further determine your eligibility, and amongst the factors that may be taken into consideration are your financial status, your employment status, your income, your outgoings, any other financial obligations, and your age.
I have bad credit – can I get an unsecured loan?
Many lenders that offer unsecured loans will not consider any applicants with poor credit particularly in the current financial climate where lenders are less willing to take risks.
Those with very bad credit will not qualify for an unsecured loan with most lenders, although those with simply blemished credit may be eligible. There are some lenders that offer unsecured loans to those with damaged credit, but often the interest rates charged can be very high.
What are the borrowing levels like with unsecured loans?
The borrowing levels with unsecured loans are generally considerably lower than those offered with secured loans. In general unsecured lender will allow you to borrow up to £25,000, although some offer higher borrowing levels. However, the exact amount that you will be able to borrow will depend on a number of factors, such as your income and financial status.
What sort of repayment periods do unsecured lenders offer?
Again, the repayment periods offered by unsecured lenders are usually a lot shorter than those offered by secured lenders. Most unsecured lenders offer up to five years by way of repayment periods. However, you may find some lenders that now offer repayment periods of seven or even ten years.
Where can I apply for an unsecured loan?
Unsecured loans are available from a wide range of lenders, from high street banks and building societies to Internet only lenders. You can therefore apply for your unsecured loan in a variety of ways depending on which lender you are going through.
The choices include calling in at the lender's officers or the local branch of the bank, calling the lender to make a telephone application, or easiest of all making an online application if the lender offers the facility to do so.
What are the benefits of an unsecured loan?
The benefits of an unsecured loan are many. Firstly, you don’t have to be a homeowner in order to get an unsecured loan. Also, you can get some competitive deals on unsecured loans, with a wide range of lenders.
Most importantly an unsecured loan is not secured against any asset, and this means that you will not risk losing your home or other assets in the event that you default on repayments, although your credit will be badly affected if you do this.
Are there any disadvantages to these loans?
The main disadvantages are that these loans are generally not available to those with poor credit, and that the borrowing levels and repayment terms are lower than those offered with secured loans.
Source:http://www.thriftyscot.co.uk/money/112007/the-best-way-to-use-an-unsecured-loan.html
You can use an unsecured loan for pretty much any purpose, and these loans provide an effective way of borrowing for many people.
As with any type of finance when you take out an unsecured loan you need to ensure that you can keep up with repayments, as defaulting on repayments could result in your credit rating getting damaged, which could impact heavily on your financial future in terms of being able to get any sort of finance in the future.
No matter what sort of finance you are thinking of taking out you should always give careful consideration before making any commitment, and unsecured loans are no different. There are a number of commonly asked questions that can help you to learn more about this type of loan, and this includes:
What is the difference between an unsecured and a secured loan?
An unsecured loan is a loan that is based on contract and is not secured against any asset, hence its name. Therefore you will not risk any of your assets when you take on an unsecured loan.
A secured loan on the other hand is secured against an asset, which is usually the home, and therefore borrowers could be putting their homes at risk if they default on repayments on a secured loan.
Who is eligible to take out an unsecured loan?
An unsecured loan is available to both homeowners and non-homeowners, unlike a secured loan, which is only available to homeowners because it is secured against the home.
The lending criteria operated by the lender will further determine your eligibility, and amongst the factors that may be taken into consideration are your financial status, your employment status, your income, your outgoings, any other financial obligations, and your age.
I have bad credit – can I get an unsecured loan?
Many lenders that offer unsecured loans will not consider any applicants with poor credit particularly in the current financial climate where lenders are less willing to take risks.
Those with very bad credit will not qualify for an unsecured loan with most lenders, although those with simply blemished credit may be eligible. There are some lenders that offer unsecured loans to those with damaged credit, but often the interest rates charged can be very high.
What are the borrowing levels like with unsecured loans?
The borrowing levels with unsecured loans are generally considerably lower than those offered with secured loans. In general unsecured lender will allow you to borrow up to £25,000, although some offer higher borrowing levels. However, the exact amount that you will be able to borrow will depend on a number of factors, such as your income and financial status.
What sort of repayment periods do unsecured lenders offer?
Again, the repayment periods offered by unsecured lenders are usually a lot shorter than those offered by secured lenders. Most unsecured lenders offer up to five years by way of repayment periods. However, you may find some lenders that now offer repayment periods of seven or even ten years.
Where can I apply for an unsecured loan?
Unsecured loans are available from a wide range of lenders, from high street banks and building societies to Internet only lenders. You can therefore apply for your unsecured loan in a variety of ways depending on which lender you are going through.
The choices include calling in at the lender's officers or the local branch of the bank, calling the lender to make a telephone application, or easiest of all making an online application if the lender offers the facility to do so.
What are the benefits of an unsecured loan?
The benefits of an unsecured loan are many. Firstly, you don’t have to be a homeowner in order to get an unsecured loan. Also, you can get some competitive deals on unsecured loans, with a wide range of lenders.
Most importantly an unsecured loan is not secured against any asset, and this means that you will not risk losing your home or other assets in the event that you default on repayments, although your credit will be badly affected if you do this.
Are there any disadvantages to these loans?
The main disadvantages are that these loans are generally not available to those with poor credit, and that the borrowing levels and repayment terms are lower than those offered with secured loans.
Source:http://www.thriftyscot.co.uk/money/112007/the-best-way-to-use-an-unsecured-loan.html
Tuesday, November 20, 2007
Christmas Loans - Key To Celebrating The Grand Occasion
The role of festivals in our lives cannot be ruled out. They break the monotony of daily routine and fill us with enthusiasm to take on the daily grind. The arrival of guests, the special preparation and the whole atmosphere is such that it sucks the fatigue from the body and inject the much needed energy. The concern, however, is that with the constantly rising prices of commodities the joy of festivals are slowly being knocked of. Simply because the preparation cannot be done on the same grand scale seriously leaving a dent in the enthusiasm of people.
Indeed, festivals are occasions when monetary help is most required. And why not, after all there are several expenses to be taken care of. Expenses which are absolutely essential to make the occasion a success. Any festival demands its share of expenses, which include expenditure on decoration, clothes, delicacy, gifts etc. And if the festival happens to be Christmas then the expenses perhaps are the most, simply because it is one festival which is celebrated at the grandest level.
It is here that Christmas loans step in and ensures that one is never short of funds to celebrate their favourite festival. Normally people prefer unsecured loans while opting for Christmas loans. This has far less hassles. Not only that people don't have to put anything as security, the formality required in the clearance of loan is also very few and the whole process is done pretty quickly.
Plastic loans or credit cards should not be used for they have higher interest rates. The reason why people get tempted towards them is because they can make the minimum payment and leave the rest for future. This is a dangerous trend for one might fall into a debt trap and loose his peace of mind over the loans he took. The best way out of this is to do a thorough research about the availability of different Christmas loans, their terms and conditions, interest rates etc. and select the one, one deems most appropriate for his requirement. If such an effort is taken then one can be rest assured that Christmas loans would indeed allow one the luxury of celebrating Christmas with great pomp and show.
The author is a business writer specializing in finance products and has written authoritative articles on the finance industry. She has done her masters in Business Administration and is currently assisting Loans-Bazaar as a finance specialist. For more information on Debt Consolidation Loans.
Source:http://www.bestsyndication.com/?q=103007_money_for_christmas.htm
Indeed, festivals are occasions when monetary help is most required. And why not, after all there are several expenses to be taken care of. Expenses which are absolutely essential to make the occasion a success. Any festival demands its share of expenses, which include expenditure on decoration, clothes, delicacy, gifts etc. And if the festival happens to be Christmas then the expenses perhaps are the most, simply because it is one festival which is celebrated at the grandest level.
It is here that Christmas loans step in and ensures that one is never short of funds to celebrate their favourite festival. Normally people prefer unsecured loans while opting for Christmas loans. This has far less hassles. Not only that people don't have to put anything as security, the formality required in the clearance of loan is also very few and the whole process is done pretty quickly.
Plastic loans or credit cards should not be used for they have higher interest rates. The reason why people get tempted towards them is because they can make the minimum payment and leave the rest for future. This is a dangerous trend for one might fall into a debt trap and loose his peace of mind over the loans he took. The best way out of this is to do a thorough research about the availability of different Christmas loans, their terms and conditions, interest rates etc. and select the one, one deems most appropriate for his requirement. If such an effort is taken then one can be rest assured that Christmas loans would indeed allow one the luxury of celebrating Christmas with great pomp and show.
The author is a business writer specializing in finance products and has written authoritative articles on the finance industry. She has done her masters in Business Administration and is currently assisting Loans-Bazaar as a finance specialist. For more information on Debt Consolidation Loans.
Source:http://www.bestsyndication.com/?q=103007_money_for_christmas.htm
Christmas Loans: Helping People Celebrate Christmas With Style
Festivals, no doubt are like tonic to the tired body and soul. An occasion to be rejoiced with the family. Indeed, they go a long way in toning up the tired body cells and tissues. They also play a sterling role in breaking the monotony and grind of daily life and filling the tired body with new found energy and enthusiasm to take on the wear and tear of life. The trouble however, is the constantly rising prices of life which robs the festivals of lot of their charm and glitter.
And if the festival concerned happens to be Christmas then the rate of expenses jump several notches simply because it is one festival which is celebrated with great zeal and fanfare. Every festival comes with its own share of expenses. Expenses which go in buying cloths, presents, delicacies, gifts etc. And if the festival is Christmas then the expenses are the most simply because every thing is done one a grander scale.
It is here that the worth of Christmas loans is most understood for it ensures that one is never short of money to celebrate this grand festival. Here it would not be improper to state that one mostly go for unsecured loans while opting for Christmas loans as they involve less formality and the whole process of allocation of loan is disposed of pretty quickly.
Plastic loans or credit cards don't curry favour with people simply because they charge higher interest rates. Though some people might feel attracted towards them because they allow minimum payment at one time. This however, is dangerous because it allures people towards debt trap. The best thing however would be to do a thorough research before opting for any particular type as there are are different companies who offer Christmas loans. This would help people in finding out as to which are the companies whose offers involve less interest rates and better terms and conditions.
If a thorough research is done then there cannot be an iota of doubt that Christmas loans would indeed go a long way in helping people celebrate Christmas with customary pomp and show.
Source:http://www.bestsyndication.com/?q=110407_christmas_loans.htm
And if the festival concerned happens to be Christmas then the rate of expenses jump several notches simply because it is one festival which is celebrated with great zeal and fanfare. Every festival comes with its own share of expenses. Expenses which go in buying cloths, presents, delicacies, gifts etc. And if the festival is Christmas then the expenses are the most simply because every thing is done one a grander scale.
It is here that the worth of Christmas loans is most understood for it ensures that one is never short of money to celebrate this grand festival. Here it would not be improper to state that one mostly go for unsecured loans while opting for Christmas loans as they involve less formality and the whole process of allocation of loan is disposed of pretty quickly.
Plastic loans or credit cards don't curry favour with people simply because they charge higher interest rates. Though some people might feel attracted towards them because they allow minimum payment at one time. This however, is dangerous because it allures people towards debt trap. The best thing however would be to do a thorough research before opting for any particular type as there are are different companies who offer Christmas loans. This would help people in finding out as to which are the companies whose offers involve less interest rates and better terms and conditions.
If a thorough research is done then there cannot be an iota of doubt that Christmas loans would indeed go a long way in helping people celebrate Christmas with customary pomp and show.
Source:http://www.bestsyndication.com/?q=110407_christmas_loans.htm
Christmas Loans: Adding Sheen to Christmas
Occasions which make everyone happy and which are waited with bated breath are festivals. Indeed, they are a tonic for tired body and soul and give one a very welcome break from the daily grind. A break which proves very effective in recharging the tired tissues and cells and preparing one up for the tough battle ahead. However, rising prices have put a dampener on the joys of people. So much so that it wouldn't be wrong to say that the rising expenses has robbed the festivals of much of their charm.
Talking about expenses they are never as prickly as they turn out to be on the occasion of Christmas. The reason for this is not difficult to understand. Christmas is one festival which is celebrated with great fervour and enthusiasm.
The continuously rising prices mean that the festival has to undergo a massive cut which results in robbing the grand event of a large portion of its glamour and sheen.
It is here that Christmas loans come into effect and ensure that the joy and splendour of the festival is not lost by arranging finance to the haggard family who find it to be nothing less than a boon. It would be worth recounting here that people prefer unsecured loans while going for Christmas loans. The reason for this is pretty straight forward. Unsecured loans require no deposition of any security resulting in very little paper work and the whole process of sanctioning of loan is disposed of very quickly.
Normally credit cards or plastic loans, as they are popularly known as, do not curry favour with people as the rate of interest charged is pretty high. Whosoever gets attracted to them gets attracted because of the provision of making minimum payment? This, however, is a very dangerous trend for people keep leaving the rest for later and walk right into a debt trap. The best way to counter this menace is thorough scanning of all the offers of Christmas loans before zeroing in on any one.
These efforts would ensure that Christmas loans would actually be able to serve their purpose in a nice way and help people immensely in celebrating their favourite festival with great pomp and show.
Source:http://www.bestsyndication.com/?q=103107_christmas_loans.htm
Talking about expenses they are never as prickly as they turn out to be on the occasion of Christmas. The reason for this is not difficult to understand. Christmas is one festival which is celebrated with great fervour and enthusiasm.
The continuously rising prices mean that the festival has to undergo a massive cut which results in robbing the grand event of a large portion of its glamour and sheen.
It is here that Christmas loans come into effect and ensure that the joy and splendour of the festival is not lost by arranging finance to the haggard family who find it to be nothing less than a boon. It would be worth recounting here that people prefer unsecured loans while going for Christmas loans. The reason for this is pretty straight forward. Unsecured loans require no deposition of any security resulting in very little paper work and the whole process of sanctioning of loan is disposed of very quickly.
Normally credit cards or plastic loans, as they are popularly known as, do not curry favour with people as the rate of interest charged is pretty high. Whosoever gets attracted to them gets attracted because of the provision of making minimum payment? This, however, is a very dangerous trend for people keep leaving the rest for later and walk right into a debt trap. The best way to counter this menace is thorough scanning of all the offers of Christmas loans before zeroing in on any one.
These efforts would ensure that Christmas loans would actually be able to serve their purpose in a nice way and help people immensely in celebrating their favourite festival with great pomp and show.
Source:http://www.bestsyndication.com/?q=103107_christmas_loans.htm
Credit crunch continues to spawn slowdowns, shutdowns and squeeze
The after-effects of the US sub-prime fiasco continue to impact on companies and consumers alike, with some anticipating that the current credit crunch situation may last until next Christmas.
According to the Financial Times, many private equity firms are suffering as: “Fears about the impact of the credit squeeze on consumer spending and the housing market has eroded the value of debt issued to fund private equity acquisitions of companies stretching from retail to property.” Moreover, credit insurer Atradius is warning of a slowdown in trade. It says that more companies are putting off paying suppliers and that this is leading to “a number of medium-sized companies going under.”
Finance companies particularly appear to be struggling. The London Interbank Offered Rate (LIBOR) – the rate at which banks lend to each other – increased to just under 6.45 per cent on November 19, far exceeding the 5.75 base rate and banks appear to be building up liquidity in order to protect themselves from any significant hits in the future.
Swiss Re has already taken a £524 million hit from the sub-prime mortgage debacle, and experts predict that Citigroup will suffer losses of $13 billion (£6.3 billion) in the next six months or so. Furthermore, Alliance and Leicester and Bradford and Bingley, among others, have reported significant share slumps in the last 24 hours. Overall, the FTSE 100 fell 2.7 per cent on November 19, its lowest point since the credit crunch started in August.
Meanwhile, many consumers are also finding it difficult to obtain credit as a result of the global squeeze. New research from MoneyExpert.com shows that average rates on unsecured loans of £5,000 are now nearly 9.5 per cent. It states that lenders are employing stricter rules on applications, and that some companies have withdrawn from the unsecured loans business altogether.
The company’s research reveals that almost 2 million adults had loan applications rejected in the six months to September 30 compared with 1.39 million in the previous six months. “Borrowers are feeling the pinch with those wanting to borrow less getting squeezed the most,” said chief executive, Sean Gardner. However, those wanting to borrow more than £5,000 are more likely to find a lower rate of interest.
Source:http://www.fairinvestment.co.uk/banking-news-Credit-crunch-continues-to-spawn-slowdowns-shutdowns-and-squeeze-831.html
According to the Financial Times, many private equity firms are suffering as: “Fears about the impact of the credit squeeze on consumer spending and the housing market has eroded the value of debt issued to fund private equity acquisitions of companies stretching from retail to property.” Moreover, credit insurer Atradius is warning of a slowdown in trade. It says that more companies are putting off paying suppliers and that this is leading to “a number of medium-sized companies going under.”
Finance companies particularly appear to be struggling. The London Interbank Offered Rate (LIBOR) – the rate at which banks lend to each other – increased to just under 6.45 per cent on November 19, far exceeding the 5.75 base rate and banks appear to be building up liquidity in order to protect themselves from any significant hits in the future.
Swiss Re has already taken a £524 million hit from the sub-prime mortgage debacle, and experts predict that Citigroup will suffer losses of $13 billion (£6.3 billion) in the next six months or so. Furthermore, Alliance and Leicester and Bradford and Bingley, among others, have reported significant share slumps in the last 24 hours. Overall, the FTSE 100 fell 2.7 per cent on November 19, its lowest point since the credit crunch started in August.
Meanwhile, many consumers are also finding it difficult to obtain credit as a result of the global squeeze. New research from MoneyExpert.com shows that average rates on unsecured loans of £5,000 are now nearly 9.5 per cent. It states that lenders are employing stricter rules on applications, and that some companies have withdrawn from the unsecured loans business altogether.
The company’s research reveals that almost 2 million adults had loan applications rejected in the six months to September 30 compared with 1.39 million in the previous six months. “Borrowers are feeling the pinch with those wanting to borrow less getting squeezed the most,” said chief executive, Sean Gardner. However, those wanting to borrow more than £5,000 are more likely to find a lower rate of interest.
Source:http://www.fairinvestment.co.uk/banking-news-Credit-crunch-continues-to-spawn-slowdowns-shutdowns-and-squeeze-831.html
Thursday, November 15, 2007
The pros and cons of secured loans
Many people across the UK have benefited from a secured loan over recent years. Rising levels of equity stemming from rocketing house process has given many more people far more financial leverage when it comes to borrowing against their home, and many homeowners have taken advantage of the situation in order to get affordable finance to suit their needs.
A secured loan is a loan that is secured against your property, and therefore you do have to be a homeowner in order to qualify for one of these loans. You will usually need to have some levels of equity in your home, and you can work this is the market value of your home minus any outstanding mortgage or other loans secured on it. The amount that you will be able to borrow – and your eligibility to borrow – will depend on factors such as your equity levels, your income and outgoings, your credit rating, and your employment status. These factors will also determine the interest rate that you are charged by the lender.
It is important to remember that although secured loans can be a very effective way of borrowing money there are also risks involved with this type of loan. Therefore before you commit to a secured loan it is important to weigh up the pros and cons in order to make a more informed decision with regards to whether you should take this type of loan or not.
The advantages
* A secured loan is an effective way for homeowners to borrow money at affordable rates. The increased levels of equity in homes today makes it easier for homeowners to get finance secured against the home, enabling them to raise the money that they need.
* You can enjoy greater borrowing power with a secured loan, although the exact amount that you can borrow will depend on factors such as your equity levels, your income and outgoings, and your financial and employment status. Some lenders will offer a loan of the full amount of your equity, some will lend up to a percentage of your equity, and there are some lenders that will allow you to borrow over and above your equity levels.
* Secured lenders offer longer repayments periods, often up to 25 or 30 years. This means that you can spread your loan over a longer period, and this can help to keep repayments down to a minimum. Your age will partly determine whether you are able to borrow over the maximum term offered by the lender.
* Secured loans are often available to those with bad credit who cannot get unsecured finance because of their low credit rating. Because the loan is secured the lender can afford to take a greater risk on higher risk customers. However, you will be charged a higher rate of interest than the standard in most cases.
* You can get secured loans for all sorts of purposes, such as home improvement loans, consolidation loans, loans to purchase a new car or pay for a holiday, wedding loans, and more.
The disadvantages
* Taking a secured loan out over a long period of time means that you will be in debt for a long time. If you want to repay the loan early or switch to another lender at a later date you may be charged hefty penalties, so this is something that you should check when you take out the loan.
* Taking out a secured loan could tie you into negative equity in the event that house prices fall. Negative equity is where you owe more on your property than the property is worth, so if you were to sell your home you would still owe money on it even though you no longer owned it, which would tie you to the property.
* A secured loan is a huge commitment and is secured against your property. If you default on repayments and fall into arrears you will not only adversely affect your credit but you could end up losing your home altogether.
* You could end up paying a lot of interest on a secured loan over the full term if you take it out over a longer period of time, but could find yourself in a catch 22 situation because of the cost of penalties if you decide to refinance or pay off the loan early. Always check and early redemption costs when you take out this type of loan.
* Although you are more likely to get a secured loan than an unsecured loan if you have damaged credit, you may find that the interest rate that you have to pay is significantly higher than those with decent credit would pay, and this could cost you a small fortune over the term of the loan.
One of the major risks that you need to bear in mind with secured loans is that your home could be at risk if you do not keep up with repayments on it, and therefore you should only consider a secured loan if you are confident that you can keep up with repayments. If you choose a variable rate loan you should remember that your interest rates could rise, and this could mean higher monthly repayments.
Source:http://www.thriftyscot.co.uk/money/112007/the-pros-and-cons-of-secured-loans.html
A secured loan is a loan that is secured against your property, and therefore you do have to be a homeowner in order to qualify for one of these loans. You will usually need to have some levels of equity in your home, and you can work this is the market value of your home minus any outstanding mortgage or other loans secured on it. The amount that you will be able to borrow – and your eligibility to borrow – will depend on factors such as your equity levels, your income and outgoings, your credit rating, and your employment status. These factors will also determine the interest rate that you are charged by the lender.
It is important to remember that although secured loans can be a very effective way of borrowing money there are also risks involved with this type of loan. Therefore before you commit to a secured loan it is important to weigh up the pros and cons in order to make a more informed decision with regards to whether you should take this type of loan or not.
The advantages
* A secured loan is an effective way for homeowners to borrow money at affordable rates. The increased levels of equity in homes today makes it easier for homeowners to get finance secured against the home, enabling them to raise the money that they need.
* You can enjoy greater borrowing power with a secured loan, although the exact amount that you can borrow will depend on factors such as your equity levels, your income and outgoings, and your financial and employment status. Some lenders will offer a loan of the full amount of your equity, some will lend up to a percentage of your equity, and there are some lenders that will allow you to borrow over and above your equity levels.
* Secured lenders offer longer repayments periods, often up to 25 or 30 years. This means that you can spread your loan over a longer period, and this can help to keep repayments down to a minimum. Your age will partly determine whether you are able to borrow over the maximum term offered by the lender.
* Secured loans are often available to those with bad credit who cannot get unsecured finance because of their low credit rating. Because the loan is secured the lender can afford to take a greater risk on higher risk customers. However, you will be charged a higher rate of interest than the standard in most cases.
* You can get secured loans for all sorts of purposes, such as home improvement loans, consolidation loans, loans to purchase a new car or pay for a holiday, wedding loans, and more.
The disadvantages
* Taking a secured loan out over a long period of time means that you will be in debt for a long time. If you want to repay the loan early or switch to another lender at a later date you may be charged hefty penalties, so this is something that you should check when you take out the loan.
* Taking out a secured loan could tie you into negative equity in the event that house prices fall. Negative equity is where you owe more on your property than the property is worth, so if you were to sell your home you would still owe money on it even though you no longer owned it, which would tie you to the property.
* A secured loan is a huge commitment and is secured against your property. If you default on repayments and fall into arrears you will not only adversely affect your credit but you could end up losing your home altogether.
* You could end up paying a lot of interest on a secured loan over the full term if you take it out over a longer period of time, but could find yourself in a catch 22 situation because of the cost of penalties if you decide to refinance or pay off the loan early. Always check and early redemption costs when you take out this type of loan.
* Although you are more likely to get a secured loan than an unsecured loan if you have damaged credit, you may find that the interest rate that you have to pay is significantly higher than those with decent credit would pay, and this could cost you a small fortune over the term of the loan.
One of the major risks that you need to bear in mind with secured loans is that your home could be at risk if you do not keep up with repayments on it, and therefore you should only consider a secured loan if you are confident that you can keep up with repayments. If you choose a variable rate loan you should remember that your interest rates could rise, and this could mean higher monthly repayments.
Source:http://www.thriftyscot.co.uk/money/112007/the-pros-and-cons-of-secured-loans.html
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