We’ve all had those situations where we needed some extra cash to cover expenses. However, what do you do when taking £60, £100 or even £200 from a cash machine isn’t enough? Well, when faced with such a situation, you may need to apply for a short-term loan. However, you must do your homework and choose a loan provider who puts your personal finances front and center.
How you manage that loan says a lot about how you manage your finances in general. Will you repay that loan on time and minimize overcharges, or will you become lax in your repayment of that loan and have to cover additional charges? Better yet, will you end up using one loan to cover another in an aimless pursuit of using credit to cover credit? Whilst it may sound dire, it doesn’t need to be. So, what are some of the criteria you should consider when taking out that all-important loan?
Is the Loan Provider Regulated?
Ultimately, you want to work with a lender that has an established history, one whose reputation and behaviour is above reproach, and most importantly, one that is regulated and authorized by the Financial Conduct Authority. The best lenders will work with you to outline a repayment plan that makes sense for you, one you can afford, and one you are capable of repaying.
Are the Charges Clear and Well-Defined?
Do you understand the interest rates on the loan, how they are calculated and what the repayment period is? Do you understand the penalties associated with late payments and or defaulting on the loan? You should never be left alone to answer these aforementioned questions, and you should never be surprised by hidden fees and penalties. The loan provider should clarify each step of the loan process, defining what each charge entails, and taking a transparent approach to the credit agreement you’ve entered.
Are You Borrowing the Right Amount?
Borrowing more than you can afford is a sorry excuse for living vicariously through credit. Whilst it’s your responsibility to live within your means, it’s also the responsibility of the loan provider to not take advantage of you. Make sure you work with a lender that does their due diligence. They should work with you to outline a payment plan that fits your budget.
The best lenders want their customers to repay the loan. The worst lenders try to get you to commit to some impossible repayment plan with exorbitant interest rates. Quick loans express focuses their approach on lending only what you need, no more, no less.