Seizing the day is the key to enjoying the unpredictable and sometimes cruelly short British summer. However, many reach a certain stage in life where spontaneity is precluded by family life – and if it’s not you, it’s your friends who can’t barbecue at the drop of a hat. A barbecue cabin can beat the weather, but finding the funds to save for such purchase can take such time that it seems like life is passing you by. If you feel that you don’t have the time to wait for the relatively low interest options currently offered by savings products to realise your dream of a log cabin, you may well be considering personal loans.
Personal loans are definitely the preferred method of accessing credit when compared to the other, more accessible option of secured loans. Secured loans are available to practically anyone who owns property, regardless of credit history – and this is of course due to the fact that your home is up for grabs if you can’t make the monthly repayments. If your credit rating is so poor that secured loans are the only option open to you, you probably have debts that should be addressed before you look at borrowing more money.
Personal loans are available to those who present a reasonably low risk to the lender, and are provided by the big high street banks like Santander (see their site for more info on personal loans). Before applying for a personal loan, it makes sense to do a quick check on the information held on you by the various credit reference agencies, as some or all of this information will be sought by the lender before you get the green light for personal loans – and a refusal of a loan application will in itself damage your credit rating. There are several credit reference agencies that offer a free introductory month to a year’s contract allowing access to your files. It is possible to check your credit rating, and then cancel the contract before the month is over so that you can establish that no erroneous information is damaging your credit rating – without having to pay to see the data held on you.
Once you have established that your credit rating is not a problem, take a little time to conduct some research online. Once you have established the kinds of personal loans on offer, it is important to scrutinise the detail before entering into a loan. The headline rate of interest – that is, the rate of interest advertised for the loan – will be the lowest possible for that product, and this will be offered to those that the bank identifies as blue chip customers, those that pose the lowest risk of default, and most closely fit the profile of the ‘ideal’ customer upon which decisions to loan are based. This is why the word ’typical’ is usually attached to the interest rate offered – you may be offered a less competitive rate of interest when you are assessed for personal loans, given your specific finances. The devil is in the detail!