Already on ArticleSlash?

Forgot your password? Sign Up

Loans - Finding the Ideal Rates

Liza Mathers
 


Visitors: 163

There are a number of factors which have to be considered in order to come up with the best possible rate in applying for a loan. Cheaper interest rate does not necessarily mean that you can save money. Many loans, especially older ones, have lock in penalties which means that even though you will pay less interest, when you add in the fine for moving overall you pay more. That it is important for a borrower to consider these factors for him to be able to get the best possible rate for his type of loan.

Secured vs. Secured Loans

Most loans in the high street are unsecured, and this type of loan is actually much better than a secured loan since the latter would allow the lender to take your property if you are unable to pay.

Secured loans are loans which require a security or collateral before a loan will be approved as an insurance for the payment of the debt or loan. The security for the loan may be real estate, jewelry and many others. These types of loans are rarely a good move should only be resorted to as a last recourse.

Unsecured loans are those types of loans which do not require a security or collateral. But this kind of loan is generally more costly than a secured one. Fortunately, due to intense competition among lenders cheap unsecured loans are now being accepted by lending institutions.

Amount and Duration of Loan

To avoid complications, it is advised to borrow as little as possible and repaying as quickly as possible. Always consider borrowing on what you can afford to repay since too much borrowing can cause debts to stack up and spiral out of control. It is advisable for a borrower to be practical in borrowing and be very careful in choosing the loan so as to avoid very future complications.

While borrowing for a long period spreads the debt and considerably decreases monthly payments, it greatly increases the interest to be paid. For instance, a debt of £10,000 at 7% over 3 years will have an interest of £1,100. While a debt of the same amount for 10 years will have an interest of £3,800. This is why a borrower should avoid long term debts for him to be able to save money.

Top Internet Loans

Of course, the best way to get the best possible rate is information. We are fortunate enough for the internet for making almost everything easier and more convenient. A little research can get you the information needed. The internet is a great tool in finding the cheap loans It is up to the borrower to secure this relevant information in order for him to properly assess the ideal rate for his type of loan He can also ask around from personal finance websites and other lending institutions to determine their interest rates. A borrower is fortunate due to the competition among the lending institutions. They are competing for the lowest possible rates and the best deals that they can offer to borrowers.

(531)

Article Source:


 
Rate this Article: 
 
Car Loans - Rates And Variable Auto Loans
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Ideal Top quality College Custom Essays at Cheap Rates

by: Mary Inniss (September 26, 2012) 
(Reference and Education/College University)

Payday Loans UK - Feasible Loans Ideal For Short Term Financial Crisis

by: Tim Kelly (June 30, 2008) 
(Finance/PayDay Loans)

Your Ideal Partner: Finding Mr. or Ms. Right

by: Dr. Iris Fanning (February 02, 2007) 
(News)

Finding Out Your Ideal Weight: How Much Should I Weigh?

by: Lovel Rose (December 08, 2011) 
(Health and Fitness/Weight Loss)

Finding The Ideal Graduate Training Job

by: Rupal Patel (May 28, 2007) 
(Business)

Finding Your Ideal Alpine Home

by: Lane Hornung (December 05, 2007) 
(Real Estate/Buying)

Finding the Ideal Chicago Car Rental

by: Quinn Barker (April 25, 2011) 
(Travel and Leisure/Car Rentals)

Finding Ideal Conversation Sets

by: Frobie Ernest (October 09, 2008) 
(Home Improvement)

How to Find Cheap Wisconsin Auto Insurance Rates Finding Cheap WI Car Insurance .

by: James J. Robinson (July 20, 2008) 
(Insurance/Car Auto)

Car Loans - Rates And Variable Auto Loans

by: Lucas Coggan (September 14, 2010) 
(Finance/Loans)