ASK YOURSELF THESE 5 QUESTIONS BEFORE TAKING AN ONLINE LOAN
Ashley Corn October 13, 2021

Oliver is this wonderful person in the neighbourhood!

And guess what? He's a fine chap who works at the bank.

Good old Oliver is one of the most trustworthy bank employees you might find. He has been good with billing, handling cash, regular deposit management and more.

But now he's a loan advisor, and he's very good at managing his work and helping people in need of personal loans (or any kind of loans).

However, being a loan advisor or counsellor himself, he had borrowed a loan or two.

Isn't that ironic?

Well, he had reasons to do so. As per his statement, it was literally 'the only alternative way' he had left when his parents came up to him to help his mum out for immediate surgery.

"You need a loan, and it's not for money. You need it for buying some time.", he says this statement to his clients even now.

Time is probably the best competitor to a financial problem. If you have enough time, you still have the space to clear your debts and make those pending payments that are probably ruining your peace all these days. A personal loan aims to provide you with this time so that you get to manage your expenses in a more relaxing and efficient way.

Yes, it can be a lifesaver just the way it saved Oliver's mum.

Although that sounds a bit dramatic, the fact (and the statistics) can 'dramatically' show that a personal loan works simply great to put you out of the devouring grasp of financial consequences.

Why only Online Personal Loans?

Since 2010, the personal loan industry has been witnessing a continuous rise in the graph, where it reached the highest sale of 208 billion pounds in the year 2019.

In 2020, the numbers kept on advancing at the same pace and rate.

There are definitely good reasons a personal loan is helpful. Unlike other loans, a personal loan isn't LOCKING UP your property (like a mortgage) or anything else as a conditional option for repayment. Based on your income and repayment methods, you can easily take a personal loan online.

But, the question is if you're prepared for it.

Aren't you?

Well, to find that out, just go through the following questions.

Things You Must Never Forget to Ask Yourself Before Taking a Personal Loan

Well, first things first. Before asking these questions, make room for some basic questions too. They are:

  • Why do I need a personal loan?
  • How can it help me?
  • What will be my repayment duration?
  • What will be my interest rates?
  • Can I manage to pay in that duration?
  • Can I manage to pay interest rates?
  • What are the alternatives?

Question 1: Have I Checked the Origination Fee?

Some lenders might ask for it. Some don't.

The origination fee is an amount of money that is deducted from the principal loan amount as a charge for offering you the loan. There are conditions for that.

You need to check the exact amount of money you need through your loan and borrow the right amount, which comes in good use 'even after paying origination fees. This step makes the process of an easy loan online even easier because you’re educating yourself with it.

Question 2: Did I Check My Credit Score?

Your credit score is something that might not matter to you. But it does to your lenders.

The credit score plainly explains your credit card history or the records of its past transactions.

Hold on right there, mate!

This record is quite important.

If your credit card transaction records show good exchanges along with timely payments, then you are keeping a good credit card score.

This might work as the trump card for you when you’re trying to get a personal loan.

A good credit card score also depends on the interest rate. The better the rates (chiefly your moneylender's business), the more favourable options you will get for your loan.

A credit card score is also very useful when you think of borrowing a large amount of money.

Question 3: Did I Check My Monthly Income?

Your lender will require this and that too formally.

A statement of your monthly income and your expenditures or obligations must be shared with your moneylender so that the professional can confirm (on paper) that you are fully liable to take and, of course, repay the loan in time.

Question 4: Am I Applying for Loans or Actually Getting One?

Let's face it. Applying for loans can be tempting because the offers are so.

Here's where you need to pay attention. Current; available loans will get you many different offers from specific brands, and you might send applications to them to get the best deal out of many.

But that's not gonna make your lenders jolly.

Too many applications don't contribute to a good credit card score.

Solution? Don't apply for them. Search for easy loans online and visit the website of the brands to check offers. Make your research detailed and proper. In this way, you’ll know what personal loan scheme is the best for you.

And what’s best for you will obviously be obtained by you too.

Question 5: Have I Checked the Interest Rates with Different Loan Amounts?

Actually, with larger amounts; the loan interest rate may get...you guessed it...lesser than usual.

A £7000 and a £7500 loan for 5 years will carry interest rates of 8.5% and 7.2%, respectively.

Naturally, it is more profitable to go with the £7500 loan than the one of £7000.

Another Good Question to Conclude: Is the Loan a Secured or an Unsecured One?

The secured loans take a unit of your property, such as your car or home or real estate, against the debt, as long as the loan isn't repaid.

Consider a mortgage a secured loan. Usually, loans come in really huge amounts.

Unsecured loans, however, are loans that do not subject or restrict any of your assets. An unsecured loan can be taken based on your monthly income and how you want to repay.

These loans, on the other hand, are generally meant for lower amounts.

A personal loan is an unsecured loan.

But the finance sphere in the UK has changed and it improved. Now, you get personal loans in a variety of amounts; interest rates and offers.

To borrow money in a snap; clear your debts and take comfort in paying it back; a personal loan is the thing you’ve been looking for.

Need a loan? Well, get a Smartphone or a tab or a laptop and start looking for easy loans online and you’ll surely get the kind of loan you need.

Time to save yourself...

...like Oliver.