Borrowers Can ‘Still Get Good Deals’ On Personal Loans
Topics: low, rate, personal, loans, still, available, but, scarce, secured, cheap, finance, credit, loan
Although low-rate loans are becoming increasingly scarce, prospective borrowers can still access competitively-priced products, it has been suggested.
In research released by MoneyExpert, the typical annual interest on an unsecured loan of 5,000 pounds stands at about 9.44 per cent, with the most expensive and cheapest rates standing at 13 and 6.7 per cent respectively. Meanwhile, just four lenders are offering products with interest of less than seven per cent. According to the price comparison website, the diminishing availability of cheap loans is due to the impact of the credit crunch which has seen a number of financial services providers hike the interest rates attached to their products and become stricter with borrowing criteria in an attempt to make sure that consumers will be able to afford repayments.
It was also suggested that the difficulties experienced in the financial market as a whole have seen several firms, including Leeds Building Society, GE Money and LV=, withdraw from the unsecured loans market altogether. Meanwhile, research from MoneyExpert also revealed that 1.91 million adults have had an application for an unsecured loan rejected in the six months leading up to September 30th - up from the 1.39 million noted during the previous half-yearly period.
However, those applying for a loan of 7,500 pounds are reported to be able to access more competitive rates of interest. According to MoneyExpert, those who are looking to take out such an amount of money are subject to a typical rate of 7.97 per cent. Meanwhile, seven providers offer interest on their products which is under the seven per cent mark. Tesco and Sainsbury’s Bank were revealed to be among those offering some of the most competitive loans, while in comparison the highest rates for a 7,500 pounds loan start from 10.94 per cent.
Commenting on the figures, Sean Gardner, chief executive of MoneyExpert, said: “Borrowers are feeling the pinch, with those wanting to borrow less getting squeezed the most. It may seem paradoxical but you will be charged more on average for borrowing less. There are fewer competitive deals around for people borrowing 5,000 pounds than for those wanting 7,500 pounds”.
“Lenders take the view that those borrowing more are in general a better risk than those borrowing less and offer better rates as a consequence. There are still good deals out there if you need a personal loan but borrowers need to be aware that lenders are getting tough on applications and rates.”
Such sentiments were echoed in research conducted by moneysupermarket earlier this month. Findings from the price comparison website indicated that nearly half (48 per cent) of those applying for a personal loan in October were rejected, compared to the 33 per cent recorded in April, the Telegraph reported. In addition, two-third of personal loans taken out by households were revealed to be used as a form of debt consolidation to pay off creditors quickly and effectively. However, the publication stated that as interest rates rise and financial providers become stricter with their borrowing criteria more consumers could be set to receive “a major financial headache”.
Steve Smith writes for the 1 Stop Finance Shop where you can apply online for debt consolidation loans. We specialise in all sorts of personal loans and secured loans with online application. Visit Today: news.1stopfinanceshopuk.biz
Previous Articles Highlighter:
Health Insurance - Protecting Your Health And Your Pocket (1)
We are far more likely to claim on a health insurance policy than our life insurance as the human body is far more complicated than any car and there is more likely to go wrong with it.
Reviewing Spending Is 'Crucial' To Managing Finances (2)
Just sitting down and reviewing your money is a crucial first step to saving some cash. So we're asking everyone to take part in My Budget Day and make a habit of finding just one hour in a month when they stop and review their finances.
Tricks To Stop Debt Collectors And Remove Bankruptcy From Your Credit Report (3)
It will be either in transition back to your local court, or already there and waiting for you to come view it. Stall tactics are key. Once your file arrives back to the local court, they will start calling you to come view it.
Homeowners 'Need To Protect Home Against The Cold' (4)
And with the months now becoming colder - applying for a secured loans, whether this is to fund improving homes to protect them from the winter weather or to help meet the cost of repairs - could be advised.
Dog Insurance - Only The Best For Your Best Friend (5)
It is cheap and easy to arrange, with cover costing pennies a day which when you set that against the thousands of pounds that a vet bill may result in, is all too easy to see the financial arguement for having the policy.
Fleet Insurance - Taking Care Of All Your Vehicles By The Fleet (6)
Choosing the perfect insurance package for each vehicle is not an easy decision to make. So imagine if you have a whole fleet of vehicles to get insurance for!
The Case For Remortgage (7)
Take the dream vacation now. Make your home repairs this season. Send your son or daughter to private school. With a remortgage, you can make your goals a reality.
Risk Management- The Key To Good Real Estate Investing (8)
Double check the middle-men: It is very essential that you conduct thorough research before blindly trusting sweet-talkers within the industry, who you are sure to find in plenty. It pays to choose the right agents.
Biggest Home Improvement Mistakes Of The Real Estate Investor (9)
Some even end up investing more than the actual cost of the property. Such investments only spell future insecurity. It pays to exercise caution while investing hard earned money.
Get Your Commercial Real Estate Investment Right (10)
As a commercial real estate investor, rermember that your investment is big. Hasty and careless decisions could cost you all your hard earned money. Do not hesitate to call in the professsionals, especially if you are a first timer in the field.
Risk Reduction Tips For The New Investor (11)
The security and stability that comes with a regular income cannot be equated almost immediately on entering the real estate investment industry. The transactions involved in this industry are big time investments and the results could be overwhelming, positively and negatively.
Eliminating Risk In Real Estate Investment (12)
The industry also has solutions to the outcomes of these errors, but it is important to first understand how to successfully eliminate risk in real estate investment. The real estate investment market has consistently provided investors worldwide with regular cash flow and numerous tax benefits.
Current Tampa Real Estate Trends (13)
There are two reasons why the housing market appears to be slumping even further according to industry analysts. First, the continued problem with foreclosures has contributed to the housing market slump.
Is It Time To Refinance Your Auto Loan? (14)
Then compare these results and find out which one is the better deal. If your credit score is low, you want to be careful and make sure you know exactly what the interest rate will be.
Expenses You Must Not Avoid In Your Property Analysis (15)
It is also very essential to consider and calculate reserve funds and recent decisions made by the condo board, in the case of condo investment. These overlooked expenses only eat into your profit figure calculated in haste.
Dumb Real Estate Investing Mistakes You Should Never Make (16)
These ignored expenses end up amounting to thousands of dollars negated from your net worth. It is human tendency to err in the face of avarice. Way out investments and 'immediate-returns' investment strategies are a sure-shot way to investment downfall.
Should I Open A Savings Account? (17)
You can, of course, take the money out of the account, but that defeats the purpose. A savings account is a great way for some people to save money and to earn some interest off of that money.
Using Long Term Care Policies (18)
Topics: insurance, car, life, travel, pet, caravan, cheap insurance, UK, compare, quote, home, buildings, contents Long term care policies can be confusing to many consumers. There are tax qualified policies and there are non-tax qualified polices, and knowing the difference between the two is important for anyone considering the purchase of a long term care insurance policy.
FHA Arizona: Slowing The Bleed (19)
Also, the FHA rates can be less competitive and there is mortgage insurance, even with 20% down payment. For me it's not about credit or rate and I'll explain why.
Have We Lost The Faith In Life Insurance? (20)
In the case of Mr Barton the insurance company used the fact that he did not disclose a kidney test as a reason not to pay out on a claim that was made when he contracted testicular cancer.
Newer Articles Highlighter:
Consumers 'Uncomfortable' With Finances (1)
In addition, findings from the financial services firm indicated that about half of people have lied to a loved one about how much a purchase has cost them. Cater Allen also reported that 28 per cent of males have lied about the cost of a gadget, while a similar proportion (27 per cent) of women have told a mistruth about how much they have spent on clothes.
Home Insurance For A Worry - Free Living (2)
Carpets can cost thousands alone, and then of course there kitchen appliances, electronic equipment and a host of other items that very rapidly swell the total value of what we have accumulated.
How To Obtain A Credit Card Instantly Online (3)
The old fashion way requires that you wait fill out an application, mail it back in and then wait for a reply. This can take a considerable more amount of time, especially if the company runs across any snags while your application is being processed.
Home Contents Insurance: Taking Care Of Your Assets Inside And Out (4)
Contents insurance covers the contents of our houses and flats. We are protecting the very things that make our property our home. A buildings insurance policy may replace the roof of our house, but it is not going to cover the cost of the fittings that have been damaged during a storm.
Saving Money On Car Insurance Has Never Been So Easy! (5)
Go to back to school. If you have taken a drivers education course, or plan on enrolling in one make sure that your car insurance company is aware of that.
Using Your Home Equity To Consolidate Debt (6)
Home Equity Loan or Line of Credit By taking out a home equity loan or a home equity line of credit, you can borrow money against the value of your home (minus the amount of money you still owe on the home) to pay down other, higher interest debt, such as your credit cards.
Government Grant Helping You To Get Your Start In Business (7)
Another thing is the nation's own development. America is a capitalist economy. If there are more people manufacturing things within the country, it becomes very good for the national economy, since the self-sufficiency of the country rises.
Benefits Of Home Ownership (8)
Equity Every month, a portion of your monthly mortgage payment is applied towards your loan's principal balance, thereby reducing your loan obligation. Based on the rules of amortization , this portion applied to principal increases each and every month.
Retail Property Market Surging In Houston (9)
All indications are that the retail property market in Houston seems set to continue with its strong growth - a trend which local companies such as Johnson Development can feel justifiably proud of.
How To Select Real Estate (10)
It just does not work out that way. We have all seen that in some principles of practice, the theory is easy to understand but the practice is difficult or even impossible.
How To Control And Save Your Money Using Credit Cards (11)
There is a theory; that, your expenses, if not controlled, always rise to your level of income. So the person who makes $5,000 will be broke, even if he gets a super pay raise and makes 20k a month, he will also be broke.
Credit Squeeze Reaches Tax Havens (12)
It's early days in the global slowdown of easy credit and fast loans, and while London and New York are the main players in the banking game, countries as small as Andorra will be trying to avoid any major impact on their domestic banking systems and real estate markets, although in the medium and long term that might prove just impossible.
Factors That Affect Your Interest Rate (13)
The more you can prove that you earn and the better your credit (and higher your credit score), the lower the interest rate you can get. The Federal Government Because of loan limits that have been established by Freddie Mac and Fannie Mae at each year's start, your loan amount itself could affect your interest rate.
Worry - Free Travelling With Insure And Go (14)
If you are looking for advice on life insurance, health insurance, landlords insurance policies or any kind of insurance, visit www.completely-insurance.com now. Completely-Insurance.com is a goldmine for information on all types of insurance.
Protecting Yourself And Your Investment With Home Owners Insurance (15)
It is not unusual for a home to contain over fifty thousand pounds worth of contents. Again, insuring the contents requires careful consideration of the policy that is being used to provide protection.
How To Magnify And Multiply Your Wealth (16)
Who creates more value per person? I would say a doctor because a doctor can save your life, a heart specialist. Madonna can only make you feel good about yourself by listening to music.
Insurance Claims - The Acid Test For Insurance Policies (17)
It can make the difference between weeks or months of inconvenience when you need the money the most or a very easy, hassle free experience that lets you recover the loss and move on with your life.
Increase And Multiply Your Streams Of Income (18)
And that is what I'm doing now with my life. There are certain careers you can go into. Like in life insurance, or for example, network marketing where multiplication and magnification is inherently built in the business model.
Securing Your Property With A Landlords Insurance (19)
You need to look very carefully at the various factors that apply to a landlords insurance policy. Make sure that the cover that is offered by a policy provider is adequate to meet your needs and any possible claims by your tenants.
Advantages Of Buying A Group Gift (20)
This way, you will all buy the perfect gift without you all wasting time for it if when this is not possible. When it comes to the right gift, the rule saying that more persons can come with the right decision than one person does applies as well.
Permalink to Borrowers Can ‘Still Get Good Deals’ On Personal Loans