Considerations Before Borrowing Money

Whilst we as a company are devoted to sourcing loans for all, we do not flagrantly source funds without due process. We are committed to doing the correct thing for our customers. In many situations, that means a loan not being the best option. A loan is a vital resource for many, but it is not the answer for all. Moolr took a look at considerations before borrowing money.

The Personal Loan Market

Most short-term loans are by definition for a short period, regarding repayment. This usually means for a year or less. The problem is that some loan borrowers take out them repeatedly to deal with financial shortfalls. They get caught in a spiral of debt. This we advise vehemently that borrowing should be used to deal with short-term issues such as a repair or a bill that requires paying. They should be used once and not as a constant source of extra funds.

Research Your Choices

There are a variety of options on the market when it comes to sourcing a payday or short-term loan. Therefore it is important to compare them to locate the one that perfectly fits your requirements. Look at the loan total, added features, the interest rate & and the length of the loan repayment to ensure the terms and conditions matches your needs.

Review the terms and conditions

While lenders still accept applications if you have a mixed credit history sometimes, they still provide criteria that you must meet. Ascertain the minimum age, income & residency requirements. Also calculate the loan repayment amounts and terms that are offered. Crucially, make sure you check whether the lender is licensed under the FCA. All of Moolr’s lenders are of course licensed. You can find such information on the website of the lender along with the registration number.

Only apply for the minimum amount required

A loan is not free money. It has to be repaid, with interest. Thus do not go over the top, ever. This is true even if you think there are brighter times around the corner. What’s more, this is a two-way street. Lenders should never offer you a loan larger than they think you can afford. Work out what repayments you can manage. Check that it is sensible for you to accept the terms offered in your unique circumstances. Only apply for a loan with repayment terms that will work for you. Calculate your budget so that you can fit in the repayments. Whichever loan you plump for, it is vital that you budget to make sure you can afford to pay it back on time.

Budget to cover your repayments.

After you have been approved for a payday or short-term loan, the lender will commence repayments usually on your next payday. Therefore, ensure your budget covers the repayment total.
it is easy to forget that you need to repay your short-term loan before your payments are due. If you can’t cover your monthly costs and the loan payment, explore other options. Before proceeding with a loan, you should always explore other options. These may include credit card introductory offers, competitive balance transfers, or the help of friends or family.

Understand the downsides of fast approvals.

A general rule is that the best things come with draw backs and provisos. Fast credit is expensive credit. There are plenty of quick short-term loan options that can get you to cash in hand within just a few days. This may be beneficial to you, and that is fine. but decide how quickly you really need the funds and act accordingly. It may be beneficial to take a slower route that provides superior rates. Ensure you get the deal that is right for your circumstances.