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)
Finding an insurance company that is right for us is important if we are serious about looking after ourselves. We need to consider the extent of the coverage, how much it will cost and most of all, how good the insurance provider is at paying claims once you need the protection.
Reviewing Spending Is 'Crucial' To Managing Finances (2)
Those from Ilford, Uxbridge and the east of the city are among consumers owing the highest proportion of money. Other areas reported to be struggling with debts include Liverpool, Birmingham and Motherwell.
Tricks To Stop Debt Collectors And Remove Bankruptcy From Your Credit Report (3)
If you know the law, your credit repair process won't have to rely on generic dispute letters or luck. Let the debt collectors do it for you and you can have your credit repaired, legally and permanently.
Homeowners 'Need To Protect Home Against The Cold' (4)
Learn where the stopcock is so you can limit water damage if a pipe bursts." In addition, Mr Coughlin pointed to research from the insurance firm showing that about half of the calls received by its 24-hour emergency helpline over the course of the last 12 months have been from those suffering drainage or plumbing problems following a burst pipe or blocked drain.
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)
Simply consider the monitoring and tracking that would be required to ensure that each vehicle has the proper coverage, gets renewed on time and continued with no period of non-coverage.
The Case For Remortgage (7)
You could actually be throwing away copious amounts of money if you do not exercise your options as a consumer and find out about remortgage packages. Remember the process of remortgage is basically free enterprise at work, and it can be quite lucrative for home and property owners.
Risk Management- The Key To Good Real Estate Investing (8)
The real estate industry beckons those with the zeal to succeed and most importantly, those who are willing to learn, especially form the mistakes of others. Real Estate Investment firm RealNet USA is offering advice on how to profit in any Real Estate Market.
Biggest Home Improvement Mistakes Of The Real Estate Investor (9)
Careful consideration of the above-mentioned errors that are common within the industry is sure to help you navigate through rough times too. In a nutshell, you should: .. Identify with the real value of the property ..
Get Your Commercial Real Estate Investment Right (10)
Remember that the market is just as lucrative as it is volatile. Take professional advice on the most profitable market phase and deals. It also helps to network with other players in the commercial real estate investment industry.
Risk Reduction Tips For The New Investor (11)
Never be in a hurry to quit your job. It is very essential not to lose your sleep over a hasty decision. The security and stability that comes with a regular income cannot be equated almost immediately on entering the real estate investment industry.
Eliminating Risk In Real Estate Investment (12)
The industry, like any other, also has complex involvement that follows the current market trends. However, it is essential to understand that if the implications are not properly weighed, the experience is bound to be a bad one.
Current Tampa Real Estate Trends (13)
The sales of previously owned homes fell to a record low. There are two reasons why the housing market appears to be slumping even further according to industry analysts.
Is It Time To Refinance Your Auto Loan? (14)
If your auto loan is still young - one or two years old, then you could stand to save some money. You would simply need to go online (at least that is the easiest way), and find an auto loan refinance calculator.
Expenses You Must Not Avoid In Your Property Analysis (15)
There are a number of additional expenses that are often overlooked in the quest to quickly calculate the profits with every deal closed. One such commonly overlooked expense is that of insurance.
Dumb Real Estate Investing Mistakes You Should Never Make (16)
The irony of the situation is that invariably your dumb mistake ends up with somebody else's pockets being filled! The path is not easy and establishing yourself in this very experimental market is not easy at all; demanding timely action and the right moves.
Should I Open A Savings Account? (17)
Savings accounts are also safe for your money in two ways. No one should keep large amounts of cash at home; that is simply dangerous to do. The money could be stolen or if there were a fire, the cash could be destroyed.
Using Long Term Care Policies (18)
There can be other conditions as well, and the contract will spell those out for you, which is why it is very important to read carefully before signing. Benefits for this type of policy are non-taxable, which may be one reason that these policies are being sold less often now than they were before.
FHA Arizona: Slowing The Bleed (19)
Here's how it works. By working with the buyer's mortgage broker, a DPA program acts as conduit for a seller-paid gift of equity. The gift of equity can be up to 10% towards the down payment of the home.
Have We Lost The Faith In Life Insurance? (20)
The case of Angela Stubbs is a high profile case in which the insurance company refused to pay out and accused her of keeping previous medical history from them. In 2004 her claim for 53,000pounds was thrown out by her insurance company.
Newer Articles Highlighter:
Consumers 'Uncomfortable' With Finances (1)
Research also indicated that two per cent of respondents throughout Britain have some type of secret assets either accrued via property or investments. Commenting on the figures, Richard Dunn, managing director for Cater Allen, said: "Since we were founded in 1816, financial etiquette has undoubtedly changed.
Home Insurance For A Worry - Free Living (2)
The buildings insurance may replace your roof or the wall that has been damaged by a car running into the building, but it will not replace the damage caused to carpets or your television for example.
How To Obtain A Credit Card Instantly Online (3)
Therefore, in order to get your business, some of the companies will approve you, even if you have less than perfect credit. Nick Makaryk is an Internet Publisher, Copywriter, and Founder of www.CreditCardCredit.net others with updated information and resources visit www.CreditCardCredit.net easy to use online credit card applications.
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)
6. Think before you buy. No matter how much you may want that expensive car, think about all of the costs associated with it. Hefty insurance payments are often not the only extra costs you will incur.
Using Your Home Equity To Consolidate Debt (6)
Payments on consolidated debt are also quite often at a lower interest rate than the rates offered by the individual lenders. Warning Signs If one or more of the following applies to you, debt consolidation may be in order: you pay for normal living expenses with credit; you transfer balances around from one credit card to another; you can only afford the minimum monthly payments on your credit cards, and no more; you have maxed out one or more credit cards; you find yourself spending more than half your income to pay your monthly credit card payments; you're looking to open yet another line of credit in order to better manage your current debt, expenses, and lifestyle; The following is a breakdown of some of the best and most common ways to consolidate debt: Debt Consolidation Loans The traditional way to consolidate debt is to take out a debt consolidation loan.
Government Grant Helping You To Get Your Start In Business (7)
The government also allows for individuals to apply, but a very small number of them actually have the ingenuity to sail through the lengthy procedure and actually get their government grant.
Benefits Of Home Ownership (8)
Somerset Mortgage Lenders has been in business since 1979. Whether you are looking to refinance your mortgage, consolidate your debt, improve your home, we can help. Call us toll-free at 1-800-675-9783 or visit us at www.somersetmortgagelenders.com
Retail Property Market Surging In Houston (9)
Commercial and residential construction has also been strong over the last few years. And Houston has no zoning laws, which generally makes it easier for developers to build in just the right place.
How To Select Real Estate (10)
than it does at 4 p.m. Drive along the street, at 4 p.m. and look about as you approach the building. Remember not to decide this on the basis of whether YOU would like to live here.
How To Control And Save Your Money Using Credit Cards (11)
And when they bill you one month later, you only have to pay one month after you get the bill. So it gives you two months of interest free money, if you use the credit card to buy something.
Credit Squeeze Reaches Tax Havens (12)
But some countries have been surprised to learn that their own banks are heavily involved in bank to bank loans involving US companies affected by the subprime mortgage business, and their citizens are waking up to what a global economy can mean in bad times as well as good.
Factors That Affect Your Interest Rate (13)
Pay a little more now or a lot more later - the choice is yours. Closing Costs Along those same lines, the more of your closing costs you're willing to pay for, the lower the interest rate you're given.
Worry - Free Travelling With Insure And Go (14)
Frequent travellers can save time and money by using their simple and cost-effective annual poliocy that does not need them to repeatedly find and complete a suitable policy every time they travel and provides peace of mind with a comprehensive coverage to protect you wherever you find yourself.
Protecting Yourself And Your Investment With Home Owners Insurance (15)
Buildings insurance cover will vary from provider to provider. You need to carefully check what is being covered and what is being excluded to ensure you have the right cover.
How To Magnify And Multiply Your Wealth (16)
Like Sarah Lee for example, everytime you buy her cake, she gets paid a percentage of that. These examples illustrate the power of scalability, leverage, magnification and multiplication. How can you apply it for yourself?
Insurance Claims - The Acid Test For Insurance Policies (17)
The cheapest premium does not mean the best deal. Customer care does come with a price tag and very often a cheap deal does mean that when you claim, you are the one that has to do the running around in order to get the claim approved, settled and paid.
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)
The real value of an insurance policy is not the cost of the premium but the ability and record of the company to settle any claims. Investors need to remember that every week that passes by with a claim unsettled is another week of lost income while the associated mortgage costs still have got to be met.
Advantages Of Buying A Group Gift (20)
This is not hard to understand thinking that you and more people will plan to stick to a budget then split the money into equal amounts. This way you will all be able to offer a great gift even if some of you wouldn't have enough money otherwise.
Permalink to Borrowers Can ‘Still Get Good Deals’ On Personal Loans