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How Can a Flexible Loan Help You?

Unlike most other personal loans, a flexible loan will allow you to make over-payments, early repayments or take payment holidays on your loan, before the end of its loan term. To pick the right loan for you, you need to decide which of the flexibility benefits you can do without and which ones you really need. We have provided explanations of the options that may be offered to you when you are searching for a loan. How can a flexible loan help you?

Over-payment:

This is where you pay extra money towards your loan to reduce the amount of interest you pay and will help to clear your loan balance sooner.

Early repayment:

This is when you pay off the total of your remaining loan balance. Some lenders won’t charge you for making an early repayment but others will. Just make sure before you apply.

How Can a Flexible Loan Help You? – Payment Holiday:

Not quite as fun as a real holiday but if you are struggling financially then a payment holiday could be a blessing. If you can’t make a repayment one month, your lender may let you take a break but you will still be charged interest on your loan balance. Most lenders will also allow you to select the date you make repayments each month, for example, the day after payday, so you can make sure your funds are ready in your account on repayment day.

How Can a Flexible Loan Help You? – Can I get a bad credit flexible loan?

Over recent years, bad credit loan lenders have started to improve how flexible their loan products are, which is great news if your credit file has seen better days. Holiday repayments and fee free early repayment loans are now very common within the market. This means, if you pay off your outstanding balance before the end of the loan term, you could save a considerable amount of cash. The table above shows you all the lenders, both for good or bad credit, that offer flexible loan conditions. Of course, you will need to check which flexibility options are available for your personal circumstances before you apply to your preferred lender.

Are Flexible Loans Worth It?

Depending on your own needs and priorities when it comes to your credit, a flexible loan may be a good option. You could save money via over-payments and early repayments and it could even improve your credit score. However, if you are specifically looking for a flexible loan, you might find that there is less choice available to you and you could miss out on better interest rates think about whether you are genuinely committed to making payments early as you may end up paying more on your loan overall.

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