Should I go to my Checking Account Provider to get a Loan?

There are so many different lenders that we can go to in order to get a loan but many people will just go to the bank that provides their checking account. There are good reasons for doing this, but there are also reasons for looking elsewhere. It is worth looking at the reasonings for both before you decide whether to stick with them or look at other options.

Using checking account provider

You will know your checking account provider and it is probably the case that you like and trust them which is why you are considering using them again. It is important to trust the lender that you are using and by using one you know, you can get over this. They will also not need to do any identity checks on you as they will have done that already when you opened your checking account. They may even not need to do a credit check. These things will make it easier for you and it could speed up the application process as well.

You will also be familiar with the way that things work with regards to how to get in touch with them and that can make things a lot easier. You may even find that because they know you and if they feel you are trusted customer, they may even give you an extra special rate. It is worth asking as you never know.

It will be a lot easier and take you a lot less time to go to them and not do any research about any other options that are available.

Using someone else

It is well worth investigating other lenders even though there are so many advantages of using your current one. The main reason is the cost of the loan. You may find that there are other lenders which are cheaper for bad credit loans that your checking account provider. They could have a significantly lower rate and this could make a big difference to you. It could mean that the cost of your loan will be a lot cheaper. However, you will also need to compare the fees and the term of the loan. In fact, it is best to work out the total cost of the loan so that you know exactly how much you will be paying in costs. Then you can compare the different lenders and work out which will be the most expensive and by how much.

It is also important to look at the repayment amounts. You will probably have to repay a certain amount each month and you will need to see whether you can afford this amount. The amounts will usually be smaller if the loan lasts longer and this can make it more expensive. However, if you miss a repayment, you will have to pay a fee and then you may end up paying more than you would, had you gone with the loan with more affordable repayments. Make sure that you calculate how much you can afford, based on your bank statements and household accounts so that you do not pick a loan that you will not be able to afford.

You may also find that some lenders come more highly recommended that yours. They may have better reviews; your friends and family might recommend you use them or things like that. It is worth looking into them and looking at their website yourself so that you can judge whether you think that they look good to you. It is worth bearing in mind that some reviews might be biased and so it is a good idea to look at a range of different sources of reviews which will hopefully eliminate some of the possible bias. It is also worth bearing in mind that if you are looking at reviews then they are more likely to be negative than positive. This is because people tend to be more likely to leave reviews if they are unhappy rather than if they are contented with a company or service. You may even want to contact them so that you can judge them on how well they respond to your queries.

As you can see, there are a lot of factors that you need to consider and it is important to look into them. It might take some time but it is worth it as it could make a big difference to your experience. This includes both the cost of the loan and other factors about the lender. This means that by researching and selecting the best lender for your needs, you will potentially save money and have a better lending experience. It can make it less stressful and cheaper and so is worth the effort. Once you have gone through this process you will find it easier next time you are looking for a loan as well.

Should I Get a Credit Card?

A credit card can be a really convenient thing to have and many people have them. However, there are advantages and disadvantages of getting one and it is worth exploring both before you decide whether it is right for you to get one.

Advantages of a credit card

A credit card can be a great way to get some interest free credit. When you use the card to buy items, you will not have to send a payment until you get your statement. In the mean time you will not need to pay out anything. This can mean that you will have the items for up to six weeks before you have to pay for them. A good way to take advantage of this is to put the money that you would have spent if you had not used the card in a savings account. This will not only ensure that you have the money available when you need to pay the bill, but you will also get interest on the money while it is in the savings account.

Having a credit card can be more secure. If you are buying items online, the card gives you some security that a debit card will not. The card has an element of insurance which means that if your item does not arrive or is damaged and you have no luck getting the retailer to sort it out, the card will be refunded with the money that you spent. It is also more secure using a card as card issuers have good fraud teams and no money will be able to be stolen from your bank account.

It can be very quick to pay in a store with a credit card. It can be much easier than trying to find the right amount of dollars. Most stores take all cards and so you should be able to replace carrying bills with carrying one card.

Disadvantages of a credit card

You may have to pay to have a credit card, there may be an annual fee. You will also have to pay interest on the money that you owe, but only in certain circumstances. When you get your statement, you will have the opportunity of paying the balance off in full and not paying any interest. This is the best option cost wise as it means that you will not have to pay out more than necessary. However, you also have the option just to pay a small amount and be charged interest on what you owe. Obviously if you want to avoid paying out any extra money then you will not do this. However, some people might find it useful as it means that they can spread their repayments. It is worth noting that if you only repay the minimum it can take years to repay a card in full and the interest can really mount up. It is therefore worth being very aware of how much the interest is, when you have to pay it and think about whether you are prepared to pay this interest just so that you can spread your repayments.

When we spend using a card it can be harder to keep track of what we are spending. When using bills, you will notice as they slowly disappear and you cannot afford so much. However, when you use a card you will not see the money disappearing and so it can be so easy to spend more money than you would have done otherwise. For most credit cards it is possible to check your balance online. This can be a useful thing to do regularly so that you can make sure that you are not buying more than you can afford. However, if you cannot check like this then it may be far harder to manage. You need to bear in mind that the ideal situation is to be able to afford to repay the whole outstanding balance each month and so you need to spend accordingly so that you will be able to afford to do this.

Some people will see a credit card as a nice chunk of money that they will have to spend on themselves. This will enable them to go out to the stores and buy all sorts of things that they like regardless of how much they cost. They can easily max out their card meaning that they spend their whole credit limit. It can be easy for them to forget that they will have to repay what they owe and that they will be charged interest on it. It is worth remembering that whenever you leave a card not fully paid off when you get a statement, you will be giving money to the card issuer. This is money that you otherwise could have had to spend on yourself.