How to Apply for a Loan

How To Access Loans

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When considering how to apply for a loan there are a number of things that you need to take in consideration; this sounds fairly obvious, but you’d be surprised just how many people who apply for small loans fall into debt or financial difficulty purely based on the fact that they didn’t do the fundamental research prior to applying. It should never be a case of first come first served, rushing into loan applications that could potentially saddle you with a significant amount of debt, for a long period of time. Although it is evident many people do dive headfirst into the unsecured lending market without first implementing a checklist of simple questions, the actual process of applying for a loan should be taken carefully, with great thought and above all, with patience.

Explore Your Options

Exploring your options is probably the first and most important consideration one must factor into their decision-making process when applying for a loan. Although it is true to admit we all live within a super fast paced society whereby decisions are made at lightning quick speeds; this should never however be the case when one is considering entering into financial arrangements, irrespective of the wonderful deal you may have been offered. The first thing to do therefore when looking for a small loan is to spend time researching the marketplace. Although it is evident an individual’s credit rating will ultimately impact upon the quality of the loan rate available, you must still take your time when exploring quick loans options irrespective of your own credit score. Yes, we know it’s old-fashioned but here at SAU Money we still hold traditional values and believe in the power of the good old pencil and paper. The first thing to do then is to flash up your laptop or smart phone and simply make a search for loan options.

Annual Percentage Rate

On each and every website that you come across you will notice the annual percentage rate of interest; this is a very important figure and one which must not be ignored when you are exploring your options to apply for a loan. Put simply, the higher the annual percentage rates, the more you will ultimately have to pay back on top of the original amount that you have borrowed. It is therefore essential you take your time in exploring all options available when applying for small loans, the first thing you need to look for is what annual percentage rate you will be paying back on the money you have borrowed as this is a key figure that should underpin all decision making on loan applications.

What is your Credit Rating?

Before you apply for a loan it is always worth checking out what your credit score is. If you do have poor credit rating then this could ultimately impact upon the quality of the loan you be to apply for. Some of the major lenders operate their own internal credit scoring system, which is linked in with an internal algorithm which will then ultimately determine whether or not you will be approved for a loan. Although this can limit the options all available for people it’s best to look at it as a fail-safe system, whereby if you do have a poor credit rating, you won’t automatically be approved for short-term credit. Things that impact on credit ratings include previous debts that were taken on and not repaid. Remember that gym membership that you signed up for and pulled out early without cancelling properly? That may also have had an impact on your credit rating believe it or not. Even the most trivial previous financial commitments you entered into may have impacted upon your current credit rating and therefore it is important that you approach credit scoring agencies to ascertain what your current credit standing is prior to making any loan applications.

Early Repayment Charges

Although it would be lovely to have the capacity to pay off loans early this is clearly not possible for everybody who applies for a small loan. Believe it or not this is something that many people who apply for loans actually have the ability to do, after they have entered into the loan agreement. An example of this could be the loan applicant coming into a small sum of money during the course of the loan agreement. Rather than sitting on a pot of money the individual may want to utilise some of their windfall to pay off the debt, and this makes complete financial sense. It is however important to check the small print on any loan application to see if there are any early repayment charges. Loan companies make their money through charging interest rates and if the loan applicant does not maintain the repayment plan for the set number of months set out in the loan agreement through paying off the loan early, then the loan company will subsequently not make as much money. It is in their best interests then to implement early repayment charges. The best thing to do with all loan applications therefore is to have a look at any early repayment charges and these will always be contained within the small print of your loan agreement.

Do you need a Loan?

Do You Need That Loan?

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There may be times when finance is needed quickly and luckily we are living in a generation whereby access to short-term funding through online loans is available pretty much everywhere. Although it could be argued the availability of unsecured finance serves to benefit those people who need to access short-term funding, that does come with it a multitude of risks which one must take into consideration and balance against the benefits of having money made available so easily and at any time of the day or night.
so easily

In terms of applying for loans it really could not be any easier in 2019 to find a suitable creditor to lend you the money needed. From the millions of websites you will find online many of whom will promise you the earth in terms of speed of delivery of the funding flexibility repayments of any finance borrowed, to the daytime TV adverts that populate the British mainstream media, in terms of having access to unsecured loans put simply, could not be an easier. need the short term loan?

But Are Loans Necessary?

Although there are so many different companies out there vying to get your attention and broadcasting the plethora of benefits they are able to provide for those people who need to borrow money, they is a framework need to apply to your own lending values before submitting your application. The first thing to consider is, are you able to repay the money that you are looking to borrow. Although this sounds obvious many people do not realise that the short-term gain of accessing a large chunk of money is clearly outweighed with the ramifications of regular repayments can often last for many years. Whilst the flatscreen TV clearly looked amazing online and you believed would look a similarly amazing in the corner of your lounge, to the repayments of hundred and £50 per month for five years really equate to the enjoyment that you will get from watching repeated episodes of homes under the hammer.

Stop and Think!

The subject of unsecured lending is something that we will be exploring in more detail as we develop SAU Money will look to provide a different outlook on people’s values and how this links into committing to borrowing money. However, the most important thing to consider and hopefully take away from this post is to really stop and think prior to submitting any applications for loans and ask yourself is what you need really worth the sacrifice of having to repay money over several months or years.

SAU Money - Brexit

Lending Money in the UK within a Complex Political Climate

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There can be lots of risks to consider when looking at taking on credit, particularly with the current climate of unstable UK politics.

Post Brexit Credit

With a clear sense of disillusionment amongst residents of the United Kingdom in relation to the political climate this could ultimately lead in a loss of faith in the financial sector which would, in turn lead to a reduction in the number of loan applications being made. There is already a heightened sense of fear across the United Kingdom due to the uncertainty of what may happen post Bexit. What impact does this have on the lending arena and how is it this would have an impact on peoples submitting applications for credit? The answer is quite simple really; research would suggest that due to the uncertainty people are holding onto their assets, austerity measures are being implemented within households and there is therefore a lack of risk from the average UK household certainly when it comes to applying for unsecured lending.

Loan Market Destabilisation

Where does this leave the lenders one may ask. Well, there is still a plethora of short-term and long-term unsecured and secured lending options available and indeed this will always be the case both pre-and post Bexit. The only real implication on either secured or unsecured loan applications will be individuals uncertainty on where the political landscape will be come October 2019. If a deal can be secured and this is what political commentators have predicted will be the likely outcome, and it could be argued financial sector will remain largely unaffected. If however were to leave Europe without a deal this could potentially destabilise the markets, interest rates could rise on mortgages and the once solid credit rating held by the United Kingdom could fall which could impact on lending between nations.

UK Credit Ratings

Although this is a worrying time, one must always hold onto the fact that there are many other countries who are not part of the European Union and who function perfectly well. He continued to have stable lending sectors and have all been able to maintain outstanding credit ratings, Norway being a prime example of this. With regards to financial advice for any residents of the United Kingdom who are considering taking on higher levels of lending it may be advisable to wait until the outcome of Brexit to ensure certainty around what potential interest rates will be applied across the board