Friday, August 3, 2007

Cheap Personal Loans

A personal loan can be a vital part of a well executed financial plan. You can use one to consolidate other debts, or to pay for something that won't fit on your credit card - or that will be cheaper with it than at exorbitant credit card rates.

Of course, it makes sense to get the cheapest personal loan that you can find. Here are five steps to finding and getting a cheap personal loan for your needs.

  1. Be strategic.

    Before you start applying for loans, it may be faxless payday loan or a personal loan, get hold of your credit report or your credit score. Knowing where you stand on the credit ladder will help you single out those personal loan products that are aimed at your segment of the loan market

  2. Check with a trusted lender.

    If you already have done business with a lender, or are doing business with a bank or building society, check in with them to see what they can offer you. In many cases, people with dodgy credit will get better consideration from finance companies who know them already.

  3. Shop around both online and off to find the best loans.

    Online, you can take advantage of price comparison sites to check the details on many different personal loans at once. Use the comparison sites as a starting point to help you sort things out - then follow links back to the lending company's own web site to do further research. Offline, check with your local high street lenders to find out what terms and rates are being offered.

  4. Take advantage of the lender's greed.

    There are ways to make your application more attractive to a lender without falsifying any information. For instance, lenders make money on payment protection insurance (PPI), so they tend to look more favorably at loans when the borrower requests it. It's far more advantageous for you, on the other hand, to provide your own standalone PPI. Take advantage of the situation by requesting a loan quote with PPI included. When you receive the paperwork to sign, return it unsigned with a request for a quote without the PPI included.

  5. Don't judge by APR.

    The APR - annual percentage rate - is the figure that you're most likely to see banded around as a loan comparison tool. The truth is that it's easy for banks to manipulate the APR and make the cheap payday loan seem less expensive than it really is. Instead, use the total amount repayable as a gauge if your biggest concern is how much the loan will cost you overall, and the monthly payment if you need to be wary of your monthly budget.

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Personal Loans

Most online lenders offering guaranteed personal loans with bad credit actually offer payday loans or cash advance loans that feature limited terms and are not always the solution that bad credit applicants seek. However, not all lenders that offer guaranteed personal loans with bad credit limit their products to payday or cash advance loans, they can also include regular unsecured personal loans and sometimes secured personal loans based on equity.

What’s with the guarantee? Nobody can guarantee payday loans finance, what is guaranteed is the fact that credit score will only have a limited influence on the decisions of approval. The terms and requirements are made available to the applicant beforehand and therefore, the borrower knows for sure that if he meets the requirements listed and that if his credit score is above the minimum required, approval is guaranteed.

Brokers on the other hand, can only guarantee that they will put all their knowledge and expertise to find a lender that suits the needs of the borrower. Those that charge a fee for their services may guarantee approval but the guarantee covers only the result which implies that if the loan approval is not achieved, the broker will return the fees in full. This is called a money back or cash back guarantee.

Minimum Requirements For Cash Advances or Personal Loans

These loans are designed for those that feature a stained credit history and need financial aid in order to get back on track. As long as you are not currently going through a bankruptcy process and even if you have a past (but discharged) bankruptcy, there are financial institutions willing to approve financial products.

The minimum requirements include an income of at least $1000 for the past two or three months (stable income), a checking account which needs to be current and non delinquent and the borrower needs to be at least 18 years old in order to apply (changes from state to state).

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