What to think about when picking your loan
While choosing a loan for £3,000 can seem like an intimidating process, full of numbers, APR percentages, and unseen pitfalls, there are really just a handful of things you need to keep in mind:
- For a relatively small amount like £3,000, a secured loan is may be unnecessary, particularly if it’s secured against something as important as your home. You don’t want to put that in jeopardy if you can’t keep up the repayments.
- Can you afford the repayments? This may seem like a glaringly obvious thing to consider, but sometimes a small-looking figure can make quite an impact when it’s leaving your bank account on a regular basis. Be sure to budget first.
- Consider the overall amount you’ll be repaying, rather than just the monthly repayments. The longer you take to repay the loan, the larger the total amount you pay back will be.
- The APR rates you see loan providers flaunt in their advertisements are always representative – this means they’re an average rate, as opposed to a definitive one. Yours could be higher or lower, depending on your financial past and present.
- Many loan providers offer a cooling down period. This is excellent news if you’re unhappy with your arrangement and want to make a swift exit. You’ll usually have 30-days to pay back the money you borrowed plus the interest Accumulated on the time you had the loan.
At comparethemarket.com we make it easy to find loan offers from some a range of loan providers. Whether you’ve got a squeaky-clean credit rating or a bad credit history, you’re sure to find an arrangement that ticks all your boxes. Our best buy table makes comparing all the important stuff a breeze; so give it a try today.