Everyone needs extra cash from time to time, for emergency expenses, a holiday, or to help pay routine household bills. But especially during these times of extreme economic crisis and tight credit it can be challenging to find a decent consumer loan
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London, England (PRWEB) April 27, 2010
UK loans provider, Today Loans, today announced that it will be launching the second of a new online loan quotation tool specifically geared to help those consumers struggling to find a competitive rate of loan.
The loan quotation tool (planned to be released at the end of June 2010), will provide prospective applicants with a snapshot of the best loan deals currently available on the market, whilst at the same time highlighting any potential pitfalls associated with a particular product.
Spokesman for Today Loans, Andy Hygate stated "Everyone needs extra cash from time to time, for emergency expenses, a holiday, or to help pay routine household bills. But especially during these times of extreme economic crisis and tight credit it can be challenging to find a decent consumer loan".
Hidden costs with some loans:
Payment Protection Insurance
Probably the biggest extra cost to consumers. When you get a quote for a loan many lenders put pressure on you to take out payment protection insurance, which covers your repayments in the event that you suffer an accident or are unable to work due to sickness/unemployment. However, what many lenders fail to point out is that this insurance is completely optional (even though many lenders apply significant pressure to buy it!).
Adding Protection Insurance to your loan doesn't actually increase the advertised APR, but this rip-off insurance will add around £1000 to the total cost of a loan of around £5000.
Early Redemption Penalties
Early redemption charges can be misleading, but put simply if you pay a loan off early the lender is not going to make as much money from you as originally anticipated. As a consequence, many lenders apply early repayment fees to their products, effectively increasing the APR over what was originally quoted.
Another issue which many people over look is the tendency for lenders to apply hefty fees for the draw down/delivery of loan advances. For example, some lenders charge a fee for the transfer of same day funds (before 3pm) to a bank account via the CHAPS payment system
Borrowing money can be a smart move, but only if it is done with careful deliberation and a thorough understanding of what a loan contract stipulates. With over 16,000 loan applications processed since the start of Jan 2007, Today Loans has an un-matched depth of knowledge within the secured loans industry, and hopes the advent of the new quote tool will help more consumers find their perfect loan.