There are lots of different loans and the repayments can vary. However, it is always important to repay the loan on time or else you will face getting extra charges and no one wants to pay more than necessary. Therefore, it can be wise to take on a loan which you feel will be easy for you to be able to repay. So, look at the loans that you are considering and find this out. For example, with an online loan you need to know how you repay and whether that will work for you.
How you Repay an Online Loan
An online loan is different to many other types of loan in the way that you have to repay it. Rather than repaying in multiple instalments, you have to repay everything that you have borrowed plus the interest and fees in one lump sum payment on the day that you are paid. This is done because the loans are designed to be a lump sum hand out to keep you going until you are next paid. However, it is made easier for you by the lender setting up a direct debit. This will be put in place so that the money will leave your account automatically and then you will not have to remember to pay it. This will make things a lot easier as you do not want to forget to repay as that will be expensive for you.
Will I Afford This?
However, as the money does go out in a lump sum, it is well worth asking yourself whether it is something that you will be able to afford. It is easy to think that you will be able to repay it easily because the money will be in your bank when you get paid, but you need to be wary and check a few things –
- Check the pay will be there – it is a good idea to make sure that you get the date right and that the salary will be in your account on the date the payment goes out. You will need to make sure it is paid in or else when the payment gets taken the money may not be there and then you will be charged. The payment could be taken early in the morning or even at midnight, so make sure that your pay will arrive on time.
- Check it is enough – check how much you are going to be paid and make sure that it will be enough to cover the repayment. We do not always get paid the same amount of money and so we might need to think about whether the next pay packet will be enough to cover the repayment.
- Consider any other direct debits / standing orders – you may also have other payments going out on that day, which may mean that there will be less money left to pay the loan. Check to see what money is due to go out, you should be able to see this if you bank online pretty easily, but otherwise speak to your bank to find out.
- Can you manage everything else? – It is also wise to make sure that you check that you will also be able to manage everything else that you will need to pay for. As well as the regular direct debits and standing orders, we also buy other things through the month such as food and petrol and we will need to make sure that there will be enough money left for this as well as everything else we have to pay for.
There are lots of different loans and the repayments can vary. However, it is always important to repay the loan on time or else you will face getting extra charges and no one wants to pay more than necessary. Therefore, it can be wise to take on a loan which you feel will be easy for you to be able to repay. So, look at the loans that you are considering and find this out. For example, with an online … Continue reading “Is it Easy to Repay Online Loans?”
There are many different lenders and they offer all sorts of different loans. The lender industry is very competitive and there are lots of lenders offering each type of loan. This means that if you are looking for a certain type of loan, then you will have a lot of choice. This is great because it means that you will be able to compare the lenders and see which will offer you the loan which is nearest to what you need. However, it can also be tricky because you will need to think about what it is that you want from the lender and choose between them. You might even think that this is not worth bothering with because they are too similar. However, there are lots of differences between them and it is worth knowing what some of these are so that you can look at these features to help you to pick the best lender to suit your needs.
The main thing that most people will compare when they are looking at different lenders is the cost of the loan. This is a really good idea, because if you want to think about whether you are getting good value or money, you will need to know how much the loan will be costing you. However, many people make a mistake when they are doing this and just compare the interest rates of the loan. This is a problem because with an online loan, the interest rate may be quoted in two ways. You may see the Annual Percentage Rate (APR) which is just the rate of interest. However, you might see the Annual Equivalent Rate (AER) which is a rate that includes fees as well. Therefore, if you try to compare them you will find that the AER will be more expensive percentage wise, but once fees are accounted for it might not necessarily be the cheapest loan. Therefore, you need to make sure that you compare it carefully. It can be easiest to either use the calculator on the website of the lender to work it out or to ask the lender to do it for you. If you find out the cost in monetary terms, then this will help you to more easily compare it.
It is also worth finding out about the fees. Not the fees that everyone pays as they should be included above, but the fees that you will need to pay if you miss a repayment. These can vary a lot and if the costs are similar, then this could be a good way to compare lenders. Do not assume that you will never have to pay these fees and so you can ignore them. You never know what might happen and the difference in cost of these could be really important.
For a lot of people the reputation of the lender is also important. They may want to use one that they have used before, for example, if they had a good experience or avoid one that they did not have a good experience with. It can be trickier if you have not used one before. Therefore, some people might ask others that they know what they think of them or perhaps look at online reviews to find out more. It can be a good idea to look at the lenders website as well to find out a bit more about them. You will then start to see what differences there are between them and it will help you to be able to more easily choose between them.
There are many different lenders and they offer all sorts of different loans. The lender industry is very competitive and there are lots of lenders offering each type of loan. This means that if you are looking for a certain type of loan, then you will have a lot of choice. This is great because it means that you will be able to compare the lenders and see which will offer you the loan which is nearest to what you … Continue reading “Are There Big Differences Between Lenders of Online Loans”