What do you look for whan applying for a loan?
Could you wait and save for what you want? Better to ask what you need to borrow than how much you can borrow.
Choose the shortest term that you can and manage the repayments..
You should make sure that by taking out the loan you are not overstretched and can afford the repayments.
Add this amount to your original loan and this is what you will repay altogether.
Unlike most lenders, a Hoot loan charges interest on the reducing balance. This means that, instead of front-loading the interest onto your loan, interest is charged daily on the reducing balance; so you pay back less in the long run.
Some also charge a setup or admin fee. With a Hoot loan there is no setup fee, early repayment or late payment charges. In fact, if you pay your loan off early you will save on interest!
You can use APR to compare similar loans because it gives the interest rate of the loan as if you are paying it over a whole year.
The interest, plus charges is stated as ‘Cost of Credit’
For example, if you have a poor credit history, comparing with a bank loan with a low APR% that you would need an excellent credit rating for, wouldn’t give you a true picture of what your options are.
Are all their decisions automated or will they look at your particular circumstance to consider whether a loan is right for you?
Credit unions are member focused lenders that put your needs before profit.