pted by an offer of a loan that seems =EBtoo good
to be true, then it probably is. Although there are many
excellent loan rates and offers out there, it pays to be
cautious about introductory loan offers. Being cautious will
help you to avoid being conned and ending up paying more than
you should. If you want to know how to separate the good offers
from the bad, then here is some advice for you.
Advance fees for a low rate
Once trick you should avoid is the companies who ask for an
advance loan fee which will be returned to you after a period
of time, and in exchange you will get a really low interest
rate. These companies are usually bogus, and you will probably
never hear from them again, having lost your advance fee and
received no other funds. Always make sure the companies you
apply for loans from are reputable companies with an excellent
history.
Low rates but high fees
Although some low rates really are low, they come with other
hidden charges and fees that will cost you large sums of money.
You might have to pay large processing fees, or the fees for
late payment and early repayment might be extremely high.
Before taking advantage of the low loan rate, make sure that
the other charges are not going to cost you huge amounts of
money.
APR advertising not always true
Although you might see a great offer for a loan, the APR that
they advertise might not be the one you can actually get. This
APR is probably true, but is only given to people with perfect
credit records over a certain period of time. In general, the
APR you can get will be higher than this, meaning the loan will
not be as great an offer as you think.
Pre-approval letters
Another danger when looking at introductory loan offers is
pre-approval letters. Although less common than credit card
letters, getting letters through the post guaranteeing a great
loan are getting more common. All you have to do is fill in the
form and you will have the loan. However, the lenders might
employ the =EBbait and switch’ technique. This means that the
amount you are =EBpre-approved’ to borrow at the great interest
rate will be replaced with a lower amount at a much higher
rate. You have already signed the agreement and might be stuck
with the loan. Make sure that with any loan you apply for that
you are really getting what you want.
Good offers are out there
Despite the dangers, there are plenty of great offers
available. Lenders are more eager to lend you money than ever,
and are consistently reducing their interest rates in order to
entice customers. The only danger with this is that you will
borrow more than you can really afford to repay, which will
leave you in serious financial difficulty. However, as long as
you shop around for a reputable loan deal and borrow only what
you can afford, you will avoid the dangers of introductory loan
offers.
About The Author: Peter Kenny is a writer for The Thrifty Scot,
please visit us at http://www.loanwize.co.uk and
http://www.thriftyscot.co.uk/Loans/
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid#111651
##################