5 Things to Ask Before Applying for a Personal Loan in 2018

Applying for a loan can be a daunting thing to do. Before even considering taking out a loan, it’s important to consider many factors so that you choose the right one for yourself with the right people. Avoid getting hammered by hidden fees and strict limits by shopping around for the loan with the best benefits and no penalties or fees that will fit in with your lifestyle. There are various loans available from a variety of lenders but don’t be tempted by the big banks or dodgy loan sharks.

Sometimes a smaller business will have your best interests at heart. Check out small loans and personal loans from Newcastle Permanent Building Society today. Before going through with a loan, consider these five questions which you should ask your lender before applying, to make sure you are on top of your money.

1.What is the interest rate?

The interest rate is one of the obvious factors to check when deciding on a loan. Being aware of the amount of money you’ll be charged as you pay back your loan can be a big determining component on choosing the right loan for you. Newcastle Permanent offers a competitive 6.69%PA interest rate on the first tier of a secure personal loan so that you won’t be paying in excess on interest alone.

2.What is the comparison rate?

A comparison rate assists you in finding the actual cost of a loan over time. It puts together all of the fees and charges along with the interest rate and produces a singular percentage rate so that it is easy to compare amongst other lenders. Newcastle Permanent offer a comparison rate of 8.41%PA so it’s simple to see the transparency and security in the final cost of your loan.

3.What repayment options do you have?

Depending on the frequency of your pay, you’ll need to ask what repayment options are available to you. It’s essential that you discover what options you have so that you’re comfortable in knowing that you can make the repayments as required and not incur any extra fees. Newcastle Permanent offers a minimum monthly principle and interest repayments in either weekly or fortnightly transactions so that you can balance your budget and stay on top of your finances.

4.What fees will I incur when taking out a personal loan?

Hidden fees are one of the biggest problems most people are trapped by when they have a loan. In order to not be trapped in debt as a result of a number of account fees or maintenance fees, you must speak to your lender and understand the conditions of your personal loan. The Newcastle Permanent is a great example of a lender that won’t have you paying penalties or hidden fees for no reason. With only an initial application fee and no ongoing account keeping fee, you can rest assured that you won’t be forking out the cash for reasons unknown. Check out Newcastle Permanent’s fees and charges for a personal loan.

5.Does the recommended loan have any additional benefits?

A good question to ask your lender is if your loan will have any additional benefits when taking it out with their company. Unlike other lenders, Newcastle Permanent allows you to make additional repayments on your loan without you incurring extra fees.

In this modern age of business you have a monopoly of lenders looking to get you involved with their loans and lending. Being sure about which lender you choose to go with and which loan you decide is best for you is crucial to ensure that your money is in the right hands. Many lenders are looking out for themselves and not their clients and they seek to make an immense amount of money through hidden fees and penalties. Smaller lenders can be your answer to receiving a personalised experience and a team who is making the most out of the deal for you. Have a look at Newcastle Permanent Building Society today and read through their personal loan guide and ask yourself these five questions so that you know you’re on your way to a secure future.