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d credit and are desperate for a loan, don’t make
the mistake of using a loan shark. Although many people think
loan sharks are a fantasy from Hollywood movies, there are many
lenders out there that will rip you off and act as a loan shark.
If you want to get yourself a loan but are not sure how to avoid
these bad lenders, then here is some advice on how to avoid loan
sharks

What is a loan shark?

In essence, a loan shark is a lender who targets people with
bad credit and difficult financial circumstances and offers
them loans are extremely high rates. By preying on people who
think they cannot get a loan elsewhere, the lender makes large
sums of money through the high interest rates. Contracts are
usually very unfair and there are harsh penalties if the
borrower defaults or misses payment. These so called loan
sharks use a variety of techniques to make money off people
unfairly.

Large loan fees

Loan sharks often charge large fees in addition to the
interest, which are added to the total cost of the loan. The
borrower is often not told in detail about these charges, and
may not notice that they are paying a lot more money for no
reason at all. These fees on predatory loans can be as much as
5% of the total loan amount. Another type of fee often charged
is for early payment on the loan. A lot of good loans do not
carry these penalties, but loan sharks can charge up to 6
months’ interest for early repayment.

High interest rates

The loan sharks target people who find it hard to get loans,
and so for the =EBconvenience’ of allowing them a loan they
charge huge interest rates. These rates could be 3 or 4 times
more than you might normally pay, and even if you have bad
credit there is no need to pay this much. If you look around
then you will see that there are competitively priced loans
even for people with a poor credit history.

Letting you borrow too much

Loan sharks are not really bothered about your ability to pay a
loan back, because they usually make contracts unfair and
require security so that if you do not pay back, you will lose
your home. That is why these lenders will let you borrow more
than you can really afford. They are making so much from the
fees and interest that if you default and they repossess your
property they will still make money.

Avoiding loan sharks

These loan sharks target people who think they cannot get a
loan another way. However, even people with poor credit can get
a legitimate loan with decent rates and no hidden charges. To
avoid being the victim of a loan shark, only use reputable
companies when getting a loan, and always check the contract
you are signing in detail. If you are unsure about a loan or
lending company, then contact an independent financial advisor.
If you shop around and remain aware of the dangers, you won’t
become another victim of loan sharks and their predatory loans.

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/

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out a loan and now find yourself in a
position to pay back the amount early, you should consider the
costs of early loan settlement. Although fewer lenders are
charging for early loan settlement, there are still many
lenders that will charge you for settling your loan amount
early. If you want to know more about the costs of early loan
settlement, then here are some useful tips for you.

Why do lenders charge for early settlement?

Lenders charge for early settlement because they will not make
as much money off you. If you kept paying the loan back then
you would make the lender more in interest payments. Therefore,
they will charge you if you want to pay back the remaining
amount early.

How much do lenders charge?

Although the amount lenders charge varies, it is usually no
more than 1 or 2 months’ interest payment. This usually does
not apply in the last six months of the loan, although this
depends on the length of the loan term. There are many more
lenders that don’t charge for early settlement these days, so
if you are getting a new loan then look for one of the
companies.

Early settlement limits

Although some harsher loans charge you for any amount you pay
back early, many loan companies allow you to pay back a maximum
amount without charging you. This varies from company to
company, but can allow you to pay back a certain amount early
without charge. However, if you want to pay back the full
amount then you will still be charged.

When to settle early

Although early settlement can cost money, if you can afford to
do it then there are times when it definitely pays to settle
your loan balance early. If you still have a number of years to
run on your loan amount and the repayment penalty is not too
high, then paying back the remaining amount will save you a lot
of money in interest payments. However, if you only have a few
months left then it may not be worth settling early, unless
your loan has no charge for doing so.

Alternatives to early settlement

If early settlement is not viable, then consider saving the
money you would use to pay off the loan amount. By putting that
money in a high interest account you could help to counteract
the interest you are paying on the loan. If there are amounts
you can pay back without being charged, then do so. Also, if
you are looking for a new loan and early repayment is a
definite possibility for you, then look at flexible loans that
allow you this option. Although they have higher interest
rates, flexible loans will allow you to overpay at any time you
want without charging you. As long as you are aware of the costs
involved in early settlement, you will know whether it is
cost-effective to pay offyour loan early or not.

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/

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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/

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One of the crucial factors to consider when getting a loan is
the length of the repayment period that you will apply for.
This will affect how much you pay each month as well as the
total amount you will pay back. As well as getting the length
of repayment period right, you need to choose the right method
of repayment so that you can afford the repayments whilst still
paying your loan back quickly. Here is some advice about
choosing the right repayment period for your loan.

Shorter period is better

Whenever you are looking to get a loan, work out what the
shortest repayment period you can afford is for the amount you
want to borrow. Although longer repayment periods will mean
that you pay less each month, you will probably pay more in
total because of the extra interest you will pay over the
longer period. Always go for the shortest period you can afford
to pay, as this will help you to pay your loan off more quickly
and also save money by paying less in interest.

Standard loan repayments

As well as working out the length of your repayment, you need
to consider the different methods of repaying your loan.
Although not all loans offer different repayment plans, it pays
to know which plan will work for you so that you can find a loan
that fits these criteria. The standard repayment method is the
most common, where you simply pay a fixed amount each month
until you have paid off the entire loan. With this type of
repayment you know that you will be paying off the loan
steadily each month, and after a certain period you will have
paid the loan off.

Graduated repayment

There are some loans on the market that offer you a graduated
repayment scheme, meaning that the loan repayments start off
small but then increase after a certain period of time. This is
good if you have taken out a loan and expect your earnings to
increase over time, and so allowing you to afford higher
repayments. This method of repayment is less common and so you
will need to shop around to find a loan like this.

Balloon payments

Some loans allow you to pay just the interest each month for a
number of years, and then pay the final balance off in one go.
This type of repayment is good if you know you will receive a
lump sum of money in a few years but need to get hold of cash
now. This type of loan means you pay little at the beginning,
but at the end pay off the final balance. However, you
generally end up paying more with this type of loan as you are
only paying interest for the first few years of the loan.

Changing the terms

Although choosing the right loan period is important, there is
always the possibility that you can change the terms if you
need to. If you find that you can afford to pay off the loan
more quickly, then try and do this, although beware of charges
for early repayment. Also, if you find yourself struggling to
pay off your loan then you should speak to your lender and try
to arrange an extension for repayment so that you can more
easily manage the payments. However, remember that the longer
you take to pay off the loan, the more you are paying overall.

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/

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Unfortunately, in today’s America too many people have found
themselves in a position of having less than perfect credit. On
the other hand, many lenders are now using more lenient lending
guidelines than in the past to approve borrowers with bad
credit for a mortgage. As a result, even if you have bad
credit, you may still be eligible for a home loan that covers a
full 100% of the financing.

Below, I’ve listed a few ideas that may help you get approved:

Online Mortgage Lenders

Remember, the lending industry is very competitive. Lenders are
always looking for new customers and virtually all loan officers
work on a commission and so if the loan doesn’t go through they
don’t get paid. As a result, it’s in their best interest to do
whatever it takes to get you a loan – regardless of how bad
your credit is.

Many online mortgage lenders specialize in bad credit borrowers
and by contacting multiple lenders you will clearly increase you
odds of not only getting a loan but ensuring that you get the
best interest rate and loan terms possible.

Tip – Bad credit mortgage lenders have higher interest rates
than traditional lenders that only loan to borrowers with good
credit. As a result, it is advised that you survey the market
well in advance, so that you may look for various bad credit
mortgage packages and have the time to compare and choose the
one that fits your current situation and budget.

Credit Report – Make Sure It’s Correct

Your bad credit may not be your fault. Mistakes by the primary
credit reporting agencies do happen and so it’s always a good
idea to get a copy of your credit. Request a copy of a
tri-merged credit report from every lender you apply for a loan
from. The reason you want a tri-merged credit report is because
all loan decisions are based on the middle credit score and so
if you only get a credit report from a single credit reporting
agency it won’t accurately reflect you credit score. Plus, any
discrepancies may only show up on one or two bureau reports and
so you need a full credit report to verify that there are no
mistakes. Of course, if you find an error make sure you dispute
them immediately.

You may also want to check for old negatives. If you dispute
these negative items, you may be able to get them removed from
your credit report. Sometimes collection agencies have moved
your information around so much that the records are a mess.
They may not even make an effort to challenge your dispute.

Cleaning up your credit report can quickly improve your credit,
which will in turn increase your chances of getting a mortgage
that has lower rates and better loan terms.

Tip – Bad credit mortgages are a kind of secured loan which is
usually secured against the house that you buy with the loan
amount.

Interest Rates

Interest rates are constantly changing. Although they don’t
bounce around quite as much in the Subprime market as they do
in the retail (good credit) market they do and can change quite
a bit. Therefore, pay attention to interest rates to determine
when the best time is to apply for a loan.

Tip – For options in finding the best lender for you, check out
the links below.

About The Author: Visit http://www.eyeonsubprime.com or
http://www.eyeonsubprime.com/links.html or
http://www.eyeonsubprime.com/sitemap1.html for more information
on loan and mortgage options.

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Advice please =F1 I need a cheap loan to suit my personal
circumstances.

Planning a big wedding, fancy a new car, want a new kitchen =F1
or perhaps just to consolidate some existing debts, but don%rsquo;t
want to pay through the nose? In other words you%rsquo;re looking for
the cheapest possible deal on a loan.

It is a minefield out there =F1 as there are numerous offers
popping out at you every way you look. But everyone%rsquo;s
circumstances are different, so an excellent way to decide on
the best loan for you is to go to a loan broker.

The advantages of using a loan broker are that they aim to get
you the best deal by:

=EF Offering a free service
=EF Having access to numerous financial products from numerous
lenders
=EF Finding a specific product to suit your personal
circumstances
=EF Keeping up to date with the latest products on the market
=EF Acting as a go-between with you and your lender
=EF Underwriting the loan from a suitable lender
=EF Quoting and agreeing terms that you understand
=EF Providing you with all the relevant paperwork from your
lender
=EF Advising you on anything you don%rsquo;t understand

The broker understands that everyone who wants to borrow has a
different set of circumstances. Because of this the rate you
may be offered can differ dramatically and depends on:

1. Your personal circumstances

The amount a lender decides to offer you always depends on your
personal circumstances. Don%rsquo;t assume that just because a
colleague, friend, neighbour =F1 or even your spouse, has been
lent a lump sum at a certain interest rate, that you will be
offered the same.

Personal circumstances include:

=EF Your monthly income
=EF Your partner%rsquo;s income (if applicable)
=EF Your household costs, including bills
=EF Any existing loans
=EF Other outgoings, such as pension contributions, maintenance
payments
=EF The equity in your house (ie how much of the mortgage you
have already paid off and the value the house has risen by)
=EF What you will be using the loan for. For example, a loan for
home improvements could be seen as increasing the value of your
home, so is an investment, whereas borrowing money for a holiday
is not.

2. Your credit score

When applying for a loan you will have to answer questions, so
that your lender can decide how reliable you are as a borrower.
The questions include how much you want to borrow and for how
long, what your income is etc.

Your answers will then be given a points score. If you have a
high rating you are more likely to be offered the amount of
money you need with a competitive interest rate. If your score
is lower you may be offered less money, or perhaps a higher
interest rate. Do note that all loan providers use this
information differently =F1 some will be more interested in your
income and others in what you want to spend the money on.

3. Your credit rating

As well as being credit scored, your lender will look at your
credit history by contacting a credit reference agency.
Everyone in the UK has what is known as a credit rating. This
is information kept on you by all financial institutions, such
as banks, building societies, mortgage lenders, credit card
companies and utilities companies, including telephone, gas and
electricity suppliers. It gives your full credit history, so
your lender will know if you have ever defaulted (not paid back
the agreed amount) on a loan before.

Know your credit rating. There are three credit rating agencies
in the UK, who hold information on you. Sometimes information
logged can be incorrect, as you can be affected by the credit
rating of someone who has previously lived at your address. To
be sure that your details are correct send any one of the three
companies a cheque for =A32 and they should send you your
information within seven days. They are:

1) Call credit plc – www.callcredit.co.uk
2) Equifax plc – www.econsumer.equifax.co.uk
3) Experian plc – www.uk.experian.com

If you do have any queries once you have received the
information contact one of the agencies above, or ask your
broker for advice.

About The Author: Chris Hake provides advice on finding cheap
loans. Visit his website here http://www.cheap-rate-loans.co.uk

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