Questions to ask your loan provider, before you sign
First, make sure you get quotes from various personal loan providers.
Apply for a secured personal loan now...
How much will the credit cost, when compared with other similar deals?
Compare the APR. The lower the APR, the less you pay. There may be other charges
not included in the APR, so find out if there are any.
You will need to be sure how much you are paying in total.
Is your home being used as security?
If your home is used as security for your personal loan, you will
have to keep up repayments, or you could lose your home.
Is this the best deal and interest rate you can get?
Buying a personal loan is like buying anything else,
make sure you get several quotes (we keep saying that, but it's true!).
Do you fully understand the credit agreement form you're about to sign?
Don't be pressured into signing a deal – if you don't understand it, try and get some advice.
Will the interest rate stay the same?
Ask if the interest rate is fixed or can it change.
Are there extra charges if you repay the debt early?
Some lenders charge an extra fee if you pay a loan off early. If you think you may
wish to do this, find out if it will cost you extra.
What happens if you miss a payment?
There are maybe penalty fees if you miss a payment, this will
increase how much you will have to pay back.
What do you have to pay each month and for how long?
It's very important to look at how long you will be paying back you loan,
as well as how much you will be paying back each month.
What's the total amount that you will pay back?
The longer the period of the loan the more you will end up paying
back. So the longer you take to pay back the more it will cost you.
This may seem like a lot to do, but it could save you thousands of
pounds, over the course of your loan...