 |
FAQ's
For Low Interest Wedding Loan
|
Which
lenders are best for a low interest wedding loan?
Most high street banks offer
quite high interest rates for their loans. For a low
interest loan you’re better off with an internet
bank. By arranging your loan online or by phone, these
companies cut down on their overheads so they can
offer you a cheaper loan. And, since they don’t have
the advertising budget or customer base of the bigger
banks, they have to provide a better deal to draw the
customers in.
Is every
low interest wedding loan the same?
No - there are other charges
to watch out for even if you manage to find a low
interest loan. Might you be able to pay your loan off
early? If so, watch out for the early repayment
penalty some low interest lenders charge (often called
an early redemption penalty or fee). This can often be
the equivalent of up to two months’ interest. And
beware if you’re asked whether you’d like the loan
amount to go straight into your account within 24
hours, or the cheque to be couriered to you the next
day – there is generally a charge of £20 to £50.
Will I be
accepted for a low interest wedding loan?
You might be looking for a
low interest loan so you can pay off the debts
you’ve already got – this is called debt
consolidation. Have you been making late payments
or applying for lots of credit cards because of your
financial situation? If so, you might have a bad
credit rating. Unfortunately, companies that provide
low interest loans tend to have a stricter credit
scoring system and might not accept anything but
perfect credit. In this case, you should choose a
lender with a higher rate.
How do I
find the best low interest wedding loan for my
circumstances?
The only way to be sure
you’re making the right decision is to compare all
the loans available. But loan rates are neither
interesting nor fun, and there are over 400 to
compare! So shop around to get the loan with the
lowest interest rate available.
Shop
around
Just make sure that when you begin shopping around at
the various loan providers for a wedding loan that suits
your current circumstances, ensure that you find an
interest rate that fits your budget as well as terms and
conditions that won’t be too restrictive. If you apply
for a loan that has flexible repayment terms and
conditions, just be sure to plan ahead and calculate
that you have enough for the repayments on a monthly
basis. You don’t want to find out you can’t afford
the wedding loan after the wedding is over.
Top |
