When you search online money loans you stop to compare the annual percentage rate of charge or with its well-known acronym APR or the APR, the equivalent annual rate, according to its translation into Spanish, which indicates the annual interest rate that will be applied to the loan.
Both indicate the cost of the loan according to the interest that you will have to pay and other corresponding charges.
Tips to apply for money loans online
If you are a customer of a bank, no matter which one, you can seduce you with promotions of preferential rates in the online money loans for current account customers, so you may think that you will not get another cheaper loan because your bank benefits you by being a customer. However, you can find other banks that will be cheaper for you, therefore you should investigate other factors that will help you understand why your bank does not benefit you as it is saying.
The small print: Whenever you apply for a loan, first of all you should read the fine print. First of all, to know if you qualify, because in the small print, there are usually issues of importance to you, which if you do not read them and sign the commitment to return the money, you will not have excuses to regret it because you have already signed it.
For example, one case is Sainsbury’s Bank, which offers you a loan at a 5.6% rate, but you will only benefit from this percentage if you have a Nectar card and have also used it at the same bank in the last 6 months. Therefore, if you sign the agreement without having read it, the bank will assume that you have this card and have used it.
Another case is that of RBS and Natwest, since in both you can benefit from low rates on your loan only if you are a client with a checking account.
Early repayment: At the moment you take out a loan, surely you are not thinking about it because you do not have enough money but over time it is likely that you will have the ability to pay the debt ahead of schedule.
In this sense, you must bear in mind that many banks will apply a charge if you want to repay your debt in advance.
For this reason, it is important that you verify how much that amortization will cost you, as it is worth looking for a bank that does not impose charges for the early repayment.
PPI: PPI, is the payment protection insurance, which can be useful for you because it covers the monthly payment of your loan or credit card in the case of illness or unemployment.
Therefore, you can decide on this type of protection and then you should know that the lender can offer you the purchase of this type of policy, but it will be more expensive than if you buy it from another provider.
You should also review the exclusions of the PPI policies, so be sure that you have understood what covers you and what is not covered before buying it.
Credit score: Your credit rating is one of the most important factors when you apply for a loan, because if you do not have a good rating, they may be able to offer you the loan but with a higher rate than you thought they could give you.
Credit card: If you need to apply for a personal loan, consider your credit card as a way to obtain the money you need and with a cheaper final cost.
Peer to peer loans: If you are not very close to banks and all their conditions, you may prefer a peer to peer loan, through which a connection is created between lenders and borrowers. If you have a credit score of at least 640 you may be eligible.
Payday loan: The most important thing to consider when applying for a payday loan is the level of interest that you will accumulate. Well, generally you will end up paying close to 400% interest after applying for a two-week loan.
In fact, they are common extortion fees that will aggravate your financial situation, especially if your request has to do with covering poor cash flow.
The interest: Interest is a critical issue and despite the fact that many US states established limits on loan amounts and repayable amounts, there is no regulation for payday loans, therefore rates fluctuate in different states. . They can start at 237% and continue to rise according to the duration of the contract and each lender, therefore this is a question that you must take into account before taking a loan and make the total calculation of the money that you will repay at the end of the agreement .
Be careful with online money loans
When you need cash for any unsurpassed reason, the first thing that comes to mind is the online money loans, because you find it easy and comfortable to take a payday loan online, since you only need to consult with the search engine and you will have several loan companies willing to help you.
But you should consider the scams of many websites, because even if it is a legitimate lender, the terms that you will have to sign will never be an advantage for you, so keep in mind:
- If you are attracted to taking a payday loan, you will take it short-term, therefore you will receive the cash in exchange for giving the lender a postdate check dated for the next payday. That check will cover the loan amount and the finance charge.
- The problem is that you may not be able to pay the loan on the due date and in this case you will start receiving threatening letters and phone calls with the intention of charging you high interest charges.
- Although payday loans are legitimate methods, from which you can obtain money, many websites are scams that extract your personal information including your social security number and that of your bank account, but some of them can steal your full identity, therefore if you have a compromised financial situation and need money, these types of loans are not the best idea.