Which Type of Loan is Right for You?

Although something urgent may have come up, and you may need money in a rush, it is important to shop around. Make sure you are getting the best possible deal to suit your personal circumstances. When any lender makes you an offer – don’t panic and rush into the first thing you get. If you get an offer from us, we guarantee it will be valid for 5 days. So you’ve got time to make sure it’s the best deal for you.
Here at Moolr, we have a summary of the types of loans available and a range of products that might better suit your needs. Which loan is right for you? Let Moolr help answer that question.

Bank Loans

Traditional bank loans will probably be the first option you think of but depending on your circumstances and the bank, there may be a few lending options available.

Who it is for:

Banks tend to lend to those who have a good credit history.

Pros: Lower APRs are available and you will also be able to have a face to face conversation about your borrowing needs.

Cons: You may happen to find your bank can’t offer you a loan.

Our advice:

The best advice that we can give you is to check out different alternatives such as online lenders, this is because they could have a better deal for you.

Credit Cards

Credit cards are a way to borrow money with balance transfers or using the card to make purchases. They often entice you with special offers and then proceed to increase rates after the promotional offer ends.

Who it is for: The people that this is best suited for is shoppers. Also those looking to switch cards to transfer their balance onto a better annual percentage rate.

Pros:

It can be used anytime for a huge range of things. The promo offers can be great as well.

Cons: Once your promo offer ends the APR can be substantially higher than they were during the promo. Taking out multiple credit cards could lead to spiralling debt. Because there is no fixed end date with a credit card, it means you could be saddled with tonnes of debt for years to come. That isn’t something you want I am sure. If the card is on a variable rate of interest, you won’t know what your future repayments will be.

Our advice:

It is useful to have a credit card, but if you want to avoid paying interest make sure you repay the balance in full by the due date.

Unsecured Personal Loans

The amount lent for a personal loan varies depending on the lender. However, these loans can generally be used for any purpose. A fixed repayment term will be agreed so you will know exactly when the loan will be paid off. They are called unsecured loans as they aren’t secured against anything you own such as your house or car.

Who it is for: This is for people needing a standard loan for anything from debt consolidation, purchasing a car, to buying things for the home.

Pros:

Can be used for a variety of different purposes. Fixed payment plans over mid-term so monthly payments may be far more affordable.

Cons: As with many types of finance, you may incur fees if you do not meet the monthly payments.

Our advice:

Do not take any more than you need. Shop around for a good APR, and ensure you make the regular monthly payments.

So that was Moolr’s blog on which type of loan is the best option for you. If you are in need of a 24 month loan or any other type of loan get in touch with Moolr today.

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