secured loans - moneynet.co.uk

10 Top Tips for Finding the Right Secured Loan

1. Compare rates on secured loans as they vary considerably from one loan provider to another. However, remember that the best rates will only be available to a small proportion of customers. If you have any history of adverse credit or are unable to prove your income you will be unlikely to be offered the cheapest loan rates.
2. Remember that an unsecured loan can sometimes be cheaper than a secured loan although if you are after a large amount or have a poor credit history an unsecured loan is often more difficult to get approved.
3. Compare the APR’s of different loans but remember the ‘Typical APR’ is only the rate that is offered to 66% of a lender’s customers. This means that you will not necessarily be offered the typical APR – the actual rate offered to you could be higher or lower depending on how risky the lender considers you.
4. Before you apply for your secured loan it is worth checking your credit report to confirm its accuracy. You can check your credit report on line by going to Experian who offer a free 30 day trial of Credit Expert the online credit monitoring and identity fraud protection service.
5. If you are thinking of taking out payment protection insurance it’s worth shopping around. Lenders rarely offer competitive policies and you can usually save money by taking this cover independently of the lender. Here at Moneynet we offer one of the most competitive loan payment protection policies on the market with cover starting at just £2.50 per £100 of monthly cover. Click here to get your own personal quotation.
6. Compare different loan terms when you get your quote. It is often surprising how little difference it makes to the monthly repayment by reducing the term by 6 months or a year. However, the saving in interest paid can be considerable.
7. Watch out for arrangement fees the lender is charging. These can add to the cost and may mean that an alternative loan with a higher APR but lower fees actually works out cheaper.
8. Check the terms for repaying the loan early – will you be penalised if you want to pay it off before the end of the term or reduce the loan amount by paying lump sums.
9. Make sure you can afford the loan repayments and remember that you are likely to still be repaying the loan long after it has been spent.
10. Think carefully before consolidating other debts into a secure loan and remember that your home could be at risk if you fail to maintain the loan repayments.

secured loan search