Consumers wanting to find the most competitive loans online have a vast number of potential lenders to deal with. Prior to filling out the paperwork to låne penger you have to decide whether borrowing money right now makes sense. The number of people going into debt is quite alarming and you should only try to låne penger if you have a legitimate need for it.
Types of Loans Available
· Secured Loans: is a loan that has collateral pledged against it. The “security” is the collateral. If the borrower does not repay the loan as promised then the collateral is forfeited to the lender. An example of a secured loan would be a mortgage, automobile loan or most hire purchase agreements.
· Unsecured Loans: Does not have any collateral pledged to the lender so in the event the borrower defaults the lender would be exposed to massive losses.
Since the secured loan provides the lender with some type of surety it will generally be lower than the rates being quoted for an unsecured loan.
Qualifying for a Loan
Each lender has their own underwriting requirements when offering loans to the public. The following are fairly universal with all lenders.
· Age of majority: This means you can legally enter into legal contracts and be held legally responsible.
· Verifiable Income: The lender will need proof that you have the means to repay the loan. One way is by providing the lender with your most recent pay slip so your income can be substantiated.
· Not Currently Bankrupt: If you are currently in bankruptcy proceedings then you cannot legally apply for any type of loan.
Qualities to Look for in a Loan
Presuming the loan is unsecured there are some key qualities you should look for when trying to get a great deal.
· Term of the loan: This is how long you have to repay the debt. The more time the lender gives you to repay the loan the more interest you will pay. The reason lenders charge more interest is the risk of your defaulting increases with the passing of time. By charging more interest the lender is insulating himself/herself from the added risk.
· Cost of Borrowing: This is a blanket term but it refers to the processing fees the lender charges to underwrite the loan plus the interest rates being levied. If you combine these two amounts then you will be able to select the lender with the most competitive terms.
· Reputation of the Lender: This is an intangible but you want to deal with a lender that has great customer service. One way to establish this is by looking at any industry awards of accolades the lender has received. Lenders with the best reviews should be moved to the top of your list.
Taking out a loan is not something that you should take lightly. Only take out the debt if you absolutely need it and have the means to repay it as agreed. If you have the slightest doubt you will be able to repay the loan then simply don’t take it.