These days there seems to be a loan available for everything and one of the most recent to hit the market, and promising 'significant benefits', is the Career Development Loan. This loan is designed to offer those who want to study further some features that other loans do not, for example, they offer a holiday break once the studying has finished and before repayments start. This obviously appeals to students and people wanting to improve their careers.

The loan market also offers another attractive loan, a 'professional' mortgage, for young professionals training to be dentists, doctors and solicitors. It is based on their financial prospects and therefore enables them to borrow more than a normal mortgage would usually permit.

Borrowing any amount of money, large or small, should not be taken lightly, and requires commitment from the borrower, and any lender, of any sum, will have to check your credit history. Unless your record is squeaky clean you will not be offered any of the good deals that are around. About 66 per cent of borrowers achieve this, but the other 34 per cent fall short.

Your current situation and financial commitments will be scrutinized as well as having a credit check to assess your credibility and credit rating. Even the odd missed card payment will be noticed and having a CCJ (County Court Judgment) will not necessarily black list you but you will be considered higher risk and therefore pay more for the privilege.

With an imperfect credit rating, the chances of being approved for a secure loan are better than if applying for an unsecured loan. A secure loan is less risky for the lender because they have the assurance of an asset in the case of payment default. They are entitled to recoup any money owed or any costs they might incur doing so, by enforcing you to find the funds or in the worst case scenario, sell your home. The security of an asset reduces their risk of losing out so they can then lend at a better rate over a longer period.

A better risk for the lender could mean a higher risk for the borrower so be sure not to over-stretch yourself and stick to what you know that you can comfortably afford to take on in your circumstances.

As we said at the start there are so many loans around and some very specialist ones, but these do tend to cost more. Always shop around and find out as much as you can about what is on offer. Internet deals are usually very competitive and an independent broker will always be happy to check out the market and find you the best deals.

For anyone embarking on their first credit application they should know that they will need some evidence that they are trustworthy and responsible when it comes to credit and it is almost better to have some history of credit paid on time and in full, than having not had any credit at all.


0 komentar: