A List Of Loan Company
What is a secured loan?
A secured loan is where you borrow money and the loan is secured against an asset such as your home or car. This means that should you fail to meet the monthly loan repayments, the lender can seize the asset in order to get their money back.Secured loans tend to be more favourable if you are looking to borrow larger amounts of money. Interest rates tend to be more attractive than if you borrowed the money as an unsecured loan. This is because the lender has a ‘guarantee’ that he will get repaid in the form of your asset.
What is a loan broker?
A loan broker is someone who searches the marketplace for the most suitable loan for an individual. A loan broker works as an intermediary between the customer and a loan provider. He will recommend and arranges the loan on behalf of the client. Some brokers charge an arrangement fee for this service.
What is an early redemption penalty?
An early redemption penalty is a financial penalty that you have to pay should you settle lending such as a loan or mortgage early. When looking for credit, it makes sense to check out the early redemption clause. That way you can see how much you could be liable for should you decide to pay off the borrowing before the end of the agreed term.
What is a credit score?
A credit score is a method that potential lenders use for calculating the credit worthiness of an applicant. They will look at the applicant’s credit report, the information on their application and the actual borrowing required. They will then use a mathematical scoring system to evaluate the amount of "risk" involved in lending to the applicant.
What is a default?
A default is the term used to describe where you have failed to meet your contractual obligations. If you have missed a payment on a mail order account, for example, they may place a Notice of Default on to your credit record.This will reflect badly on your credit file in the future should you wish to apply for further borrowing.