What makes certain credit loans bad? Does it lie primarily with the interest rate?
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jackie123
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
yes, it could relate to the interest rate or APR which also includes other costs attached to the loan.
some lenders will charge application fees and closing down fees, its common when buying a new car from a dealer to be charged £100ish when you pay the final payment to release the charge on the car.
a bad loan might also have unfavourable terms such as very steep penalties on early repayment or missed/late payments.
this is why it is so important to read through all the terms before you sign and if you realise after signing that you dont like the deal, you can usually "cool off" or cancel but this is only within a very small window of time.
i find its often time better spent researching most financial matters in advance rather than trying to spend time against the clock sorting out a mess.
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some lenders will charge application fees and closing down fees, its common when buying a new car from a dealer to be charged £100ish when you pay the final payment to release the charge on the car.
a bad loan might also have unfavourable terms such as very steep penalties on early repayment or missed/late payments.
this is why it is so important to read through all the terms before you sign and if you realise after signing that you dont like the deal, you can usually "cool off" or cancel but this is only within a very small window of time.
i find its often time better spent researching most financial matters in advance rather than trying to spend time against the clock sorting out a mess.
