An explanation of flexible loans
An explanation of flexible loans, and when you might want one. Includes pros and cons, how to get the best deal, and amounts and rates you can expect. The best thing to do is get a quote from at least one broker.
A flexible loan is basically a personal / unsecured loan, but with a few extra characteristics as mentioned above. As such, you can borrow up to £25,000, and choose to repay the money over a period of up to 5 years. You can pay different amounts each payment date, but there will always be a minimum amount that you have to meet. If you do choose a payment holiday, remember that interest is still accrued over this period.
Loan rates are similar to a standard personal loan, but they may be slightly higher. Rates of 6 to 12% are typical of someone with a good to fair credit score. This is because the lender wants to make money off you, and if you repay the loan early they will not make as much profit. Therefore by increasing the lending rate the lender will cover the money lost by those people who do pay their loan off early. It's all about doing what's best for your situation. What you lose with a slightly higher interest rate, you gain with the flexibility of being able to clear your loan much earlier than normal.
One of the nicest features of the online type of this loan is the online transfer of funds directly to your bank account within 24 hours. Once your loan application has been approved, you will just access your bank account for your extra cash. Moreover, this is very safe and hassle-free too aside from the fact that you can easily get quick cash.
Aside from meeting your immediate needs for cash, these loans are helpful to build up your credit score. They are designed for a quick credit repair. When you faithfully meet the requirements and do not miss on your repayments, you enhance your credit rating making you eligible for future borrowings. As a privilege for you, you will get instant approvals for your next loan applications and may even be offered with greater principal.
How to Get the Best Offer
This type of loan flexibility is only offered by a few lenders. Not all of them are based on the high street, so you may need to use a loan broker to get access to more quotes. The best thing to do is get a quote from at least one broker, and go direct to two or more banks who offer this type of loan, but who do not operate via a broker. In this way you get the best of both worlds - the reach of a broker, and the handful of deals they cannot access.
Finally, remember just to get a quote in principal - do not let anyone do a credit check yet at this will harm your credit score, potentially making the rate available to you worse. Only when you know what the best rate will be should you get credit checked by that lender.
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