There are times when you need to get your hands on some extra cash. Whether it's to cover emergencies, buy a new car or replace furniture, these tips will help you to find your way out of the money maze.
Do your research
Each lender has a different ideal customer 'profile' so look for the ones that match your circumstances and offer the best value based on your borrowing needs. For example, if you are looking for a loan to purchase a car, you should look around for the loan providers that specialise in this type of loan. Online comparison sites can help with this, as they ask you a series of questions to determine your requirements and match you to an appropriate lender.
Don't fire off multiple applications
Each loan or credit card application triggers a search of your credit report and logs the search as well. The danger with making a number of applications is that lenders who see lots of them in a short period may suspect that you're in serious debt or may even think a fraud is being planned.
See what the lenders do
Lenders use the information in your credit report to assess whether you'll be a reliable borrower, so check it yourself before you apply and make sure it's up to date and accurately reflects your circumstances - it's free to see your Experian credit report with a free trial of the credit monitoring service CreditExpert.
Don't fight fire with fire
Think carefully before borrowing your way out of trouble - you're in danger of only building up larger debts. Instead, talk to your existing lenders and see if you can arrange a more affordable schedule of repayments. Remember this could mean taking longer to repay what you owe.
Don't be penalised for repayments
Repaying all your debts early is not always rewarded as you would expect. Often, loan companies will try and recoup the money that they lose from you in interest payments by charging you a fee for early repayment. If you're trying to consolidate your debts, check for any early redemption penalties on existing borrowing or set-up and transfer fees on a new loan and factor them into your calculations. Take independent advice if you?re having difficulty making the comparison.