Can you afford to pay off your
loan early? - 02/09/04
A recent review of consumer credit laws
by the Government has lead to new rules
being published to protect consumers from
being penalised for early repayment of
credit agreements and the increasing debate
over what the actual APR you’ll
be paying on credit cards and loans is.
Under the new laws on consumer credit;
when financial institutes use an APR in
an advert they must make sure it is more
prominent than all other financial information,
you’ll know exactly what percentage
of your balance you’ll have to pay
as interest. If you’re thinking
of paying off your loan early, or switching
to a better deal check carefully the small
print on your current loan or future loan.
You could face a penalty for paying back
and ending your agreement with the lender.
Currently you might be expected to pay
a minimum of two month’s instalment
and an additional month’s interest!
From May 2007 paying off a loan early
will be limited to the interest for one
month and 28 days. For those who are smart,
turn to GoBusinessFinance for loan offers
that let you pay off your loan as early
as you want with no penalties.Take out
a personal loan?
Living beyond our means becomes a necessity
for most, whether you’re a graduate
wanting to consolidate your debt from
collecting too many bits of plastic; or
a homeowner looking to take a break from
your mortgage and go on holiday, we’re
always looking for cheap money to spend
on expensive luxuries. Here are our tips
to get the right personal loan:
- Don’t be afraid to ask for
quotes, GoBusinessFinance gives instant
quotes with no obligation to apply from
a selection of top lenders. Pick the
lender with the interest rate and benefits
that appeal to you.
- Do not apply for multiple loans,
this will seriously affect your credit
rating and score. Each time you apply
for credit a search is carried out which
affects your score. A lower score means
you’re less likely to get credit
or the lowest interest rate. www.creditexpert.co.uk
- Look at the add-ons that might already
be attached to your loan such as Loan
Protection, you can have this removed
and it won’t affect the lenders
decision to offer you the loan.
- You might want to pay off your loan
early, check with the lender the conditions
of ending your agreement early. Always
make sure you 100% happy, then sign
the dotted line!
Latest rates from GoBusinessFinance…
| Provider |
Amount |
APR |
Cahoot |
Up to £20,000 |
5.8% APR |
RBS |
£5,000 to £20,000 |
6.1% APR |
Firstplus |
£5,000 to £75,000 |
8.4% APR |
Get a quote now
Written By Simon Johnson
Xbridge
Decision Finance
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