The time comes for many people when they need to borrow money. This can be for school, business expenses, paying down other debts, or making an expensive purchase. Getting cheap loans can be filled with hassles, but there are ways to make the process simple. Following the simple guidelines explained below should land you a loan that is affordable and will not leave you in a financial crisis. Here are a few simple guidelines for getting cheap loans without risking financial security.
Where to Find Cheap Loans
Start by conducting some research on your options. Speak with a reputable financial adviser who will advise on the best route to take. Chances are one of the sources listed below will be your best bet.
Before going to your local bank, try a credit union. Credit unions not only have more money for lending purposes than banks, they are known to have interest rates which are on average one percent lower than banks. Getting a loan at a credit union is all about collateral. The more a person has to offer the higher the loan amount and better the interest rate he will receive.
Pay Day Loan Agencies
If a person is looking for quick, cheap loans without the hassle of collateral, pay day loan agencies might be a good option. The key to getting a good payday loan is paying it off quickly. The interest rate is usually high, so the sooner you pay it off the more money you save. Payday loans can be dangerous, so make your choices carefully and consider this type of loan a last resort.
Online Lending Agencies
Online lending agencies can be useful in some situations. It is important to note that although the loan might be cheap, it is not insured and it might be legal in some cases. Act carefully if you are considering this type of loan.
Tips for Securing Cheap Loans
Lending agencies normally calculate loans based on the loan amount and the repayment period. When applying for a loan, try to select a short but realistic period. If you can pay off a loan in less than a year, you will likely get a better rate Remember to ask about the option of refinancing a high interest loan in the future. You might only qualify for a high interest loan right now, but months or years in the future, the lend might be willing to reconsider the rate.
Here is a list of some of the best known lenders in the United States:
- 1st National Bank of Arizona
- Advantage Home Loans
- America’s Mortgage Banc
- Bank of America
- Bank of Blue Valley
- Bank One/Chase
- Benchmark Mortgage
- Bravo Credit Corporation
- Capital One Auto Finance
- Capital One Home Loans LLC
Avoiding PPI for Cheap Loans
One final note: the loan provider might offer Payment Protection Insurance (PPI), but it is better to avoid this offer from the bank and purchase it on your own if you feel it is necessary. The purpose of PPI is to cover people for 12 months in the event that they are unable to find a job and work. The downside is that sometimes banks charge drastically more than alternative sources. Customers are not duly informed that the same insurance can be bought online for a only fraction of the price they pay.