With Britain's personal debt increasing at an estimated ?1 million every five minutes it's vital that you know exactly what you're looking for when applying for a personal loan.
The APR (Annual Percentage Rate) was introduced as a means to make the lending market more understandable for consumers. Although the loans in today's market vary considerably, with numerous factors determining their cost effectiveness for the consumer, APR still plays a large role.
Put simply, the lower the APR, the better, as this will result in lower monthly repayments and hopefully an overall cheaper loan. Lenders tend to advertise a "typical" APR, which at first glance can usually look quite competitive.
The actual APR you will quoted though, will vary depending on a number of factors, notably your credit rating.
The additional benefits and "added extras" lenders offer are in place to win your custom. Initially this may seem a little suspicious; such extras however, are generally to your benefit.
Some examples of what your lender may offer are repayment holidays, deferred repayments, accelerated repayments, choice in interests (e.g. fixed, variable or capped).
Missing repayments can cause a multitude of problems. Not only will you be charged extra but your credit rating will get a beating, making it harder for you to obtain lines of credit in the future.
At the end of the day, when you take out a loan, you tie yourself into a legal obligation, a promise that you will repay the loan in full and on time.
Applying online for is an excellent way of making sure you are getting a decent deal. With the myriad of on the market, a large number of handy comparison websites are popping up, making finding the you require easier than ever.
