If you're looking for a 50 pound loans to
consolidate your debts or to make a purchase, there will probably be a number
of options for you to choose from. Read through the following dos and don'ts
for choosing a 50 pound loans deal to make sure you find the best deal for your
circumstances.
DO: Be realistic about
how long it might take you to repay your loan.
The amount of time you allow for repayment of
your £1000 loan will influence the type of deals available to you and which
will be easiest on your purse strings. As you want the overall cost of the loan
to be as little as possible, aim for the cheapest £1000 loan you can find which
lets you pay off the capital in a reasonable time period for you. If you are
able to pay off your loan very quickly, the overall cost is likely to be a lot
less.
DON'T: Look only at
the APR - consider additional costs
The APR of a loan is the annual percentage
rate, or the amount of interest you will pay on the loan over the course of one
year. This is a good place to start when comparing £1000 loan deals but you
need to look into other costs and variations as well. These can include
delivery fees, payment protection insurance and early settlement fees, all of
which can have an impact on the overall cost of the loan.
DO: Beware of payment
holidays
Many lenders will allow a payment holiday of
one or more months at the beginning of a £1000 loan. While this can seem like
an attractive option, you will usually end up better off if you don't take them
up on this offer. The reason is that during the payment holiday you will still
be charged and future payments will increase as a result. The total cost of the
£1000 loan will also be larger if you accept a payment holiday, so it's best to
avoid this option unless absolutely necessary.
DON'T: Commit to a
loan you don't understand
Don't be afraid to ask as many questions as
you need to so you have a full grasp of what you are signing up to. Read all of
the small print and if there are any terms you don't fully understand then make
sure your lender explains these to you. It's vital that you know exactly what
you are committing to when you sign the £1000 loan agreement.
DO: Consider your
credit rating
Lenders will check your credit rating before
offering you a £1000 loan and if you have not managed to pay loan payments in
time in the past then this, among other things, will affect their decision. If
you know that you have a bad credit rating, don't ignore this fact when signing
up to a loan. If a number of loan applications are rejected due to a poor
credit rating then this could further affect your borrowing power, making it
even more difficult to borrow in the future.
