You can easily get money fast with the best fast loans, but one wrong move could also cost you a lot of money. A quick loan could be the right way to make a good financial decision, but it is important that you understand all the terms and conditions before you take out a fast loan. Let’s look at some of the best fast loan tips to help you make the right decision.
Get Pre-Approved by Multiple Lenders
The advertised rates on lenders’ websites and billboard signs are not always guaranteed. Borrowers usually need to meet a long list of qualifications to get these advertised rates. The best way to find what terms a lender provides for a loan is to get pre-approved by the lender first. Some lenders can pre-approve borrowers without knocking any points off your credit score.
Most of the lenders conduct a “soft” credit check to approve borrowers. The lenders pull information from your credit report without affecting your credit score in contrast to a “hard” credit check. The soft credit check will not show up on your credit report. With the help of the information from this report, lenders can make an informed tentative decision about whether or not to lend you money and how much.
Confirm if the lender will perform a soft credit check and apply for a quick loan with multiple lenders. Lenders will require basic personal information like employer’s information, monthly income, current debts, and credit score. It will be easier to compare the offers when you have multiple pre-approved loan offers.
Comparing the APR and Other Fees
It might not be easy to calculate the total interest you pay on the pre-approved offers from lenders. It is a better judgement to consider the APR to find out the loan’s true cost. Some lenders charge additional fees such as loan-related charges and closing fees that make the interest rate of the loan much higher.
The APR includes fees such as:
- Introduction fee
- Processing fee
- Documentation fee
Do not hesitate to ask the lender for all of the different fees it charges in various situations. Remember that the APR does not include any costs related to retaining the loan. For example, there might be additional costs if you delay repayments past their deadline more than once. Lenders are legally obligated to disclose all of their terms and conditions before providing a loan.
Understanding the Conditional Fees
There are many different fees associated with quick loans in the UK. Borrowers unaware of these fees can quickly rack up extra costs. Some of the most common fees are:
- Annual renewal fee
- Check processing fee
- Late fee
- NSF (Non-Sufficient Funds) fee
- Prepayment penalty
One of the less common fees in this list is the prepayment penalty. A prepayment penalty applies when you pay off the loan early. Lenders can lose out on future interest when debtors pay off a loan early. The prepayment penalty allows the lender to make up for the lost interest.
If you do not pay your loan back on time you can expect to be charged with late fees. The lender will charge an NSF fee if your account does not have sufficient funds at the time of repayment. Some locations in the United Kingdom prohibit prepayment penalties and other lenders still charge them. Always read the fine print to know where you stand.