UK Secured Loans Loan Company
What is a debt consolidation loan?
A debt consolidation loan is where you take out a loan to pay off existing debts. So in effect you are lumping together all your existing debts, clearing them with a debt consolidation loan and then making just one payment a month to clear the outstanding balance.You may find that you save money too, as taking out a 9% APR loan to clear a credit card with a balance accruing interest at 16.5% APR makes sense. There is also the psychological factor of only having one monthly repayment to manage rather than lots.
What is a secured lender?
A secured lender is a loan provider who secures the loan against your assets such as your home or car. Interest rates on loans provided by secured lenders tend to be cheaper than those offered by unsecured lenders. This is because the secured lender can seize your assets should you fail to meet the repayment terms whereas the unsecured lender cannot.
What is an arrangement fee?
An arrangement fee is something that is charged by a lender or broker when you take out borrowing such as a loan or mortgage. It is to cover their costs in arranging the lending. Some lenders will offer this free of charge in order to attract new customers.
What is Experian?
Experian is one of the major UK credit reference agencies.Lenders will use a credit reference agency to check the suitability of an applicant based on their financial history. This is known as a credit report.As a consumer, you can request a copy of your credit file from Experian to check that all the data on it is correct and that your details have not been used fraudulently.
What is a bad credit rating?
When you apply to borrow money, the potential lender will look at your credit file to judge your credit worthiness. He will then give your application a credit rating such as excellent, good or bad. If you have a bad credit rating, you will find it hard to get accepted for credit. A credit rating tends be ‘bad’ where you have a poor financial history. Late or missed payments and County Court Judgements will affect your credit rating.