Are Online loans Easy to use?

There are many loans available but we can often be put off by online loans. Even if the loans are offered by well-known banks, we might worry that they will be hard to use. This might just be because they are different to what we know. It is worth finding out more though because you may regret not taking one out because you could find it is cheaper or better than a branch based one.

Application

You may worry that the application will be difficult to start with. If you are used to filling out a paper application form then you may worry that doing it online will be tricky. However, all lenders want to make it easy for you to apply for their loans from HappyPenguin. They want you to take them out and therefore they do not want you to be scared away by a complicated application form. They will want to make it as easy as possible. You will be asked the same questions as you would be on a paper form. You will just need to type in the answers rather than write them down. If you struggle with typing then you may be able to ask a friend or family member to help you. You may even be able to apply over the telephone. Try calling the lender to find out as they might be really happy to help you out with this.

Day to day use

You might worry about accessing the loan online. However, it is unlikely that you will need to log in and check the loan that often. If you have a repayment set up by direct debit, then you will not even need to check the account at all. You will just need to make sure that you will have the money available in the account that the repayment goes from so that it can be made successfully. Then you will be able to sit back and just let it get repaid automatically. If you do want to check the balance then you can log in and look online. This can be a very simple process. You will need to set up a login and password, but this is straightforward and then use this to access your account and check what is going on. Once you get into the account, the information you see will be very similar to what you are used to seeing on a bank statement. It will show transactions, such as how much money you were given and the repayments that have been made as well as the interest charged.

Are they right for me?

If you are very familiar with online banking or using the Internet then it is more likely that you will be happier about using this sort of loan. It is likely that you will not be concerned about how easy it will be to use and that you will be likely that you will use one as long as you are happy about the security of online loans, the interest rate and things like that.

If you have no Internet access and no computer then this type of loan will certainly not be suitable for you. If you are worried about online security and online banking then you will probably not be interested either. However, if you know how to use the Internet and have passwords for other things, then it is something that you could probably consider using.

It is important though, to make sure that you do compare online loans with other types of loans. You will want to make sure that they are going to be good value for money for you. Loan differ a lot in what they can offer borrowers and it is wise to make sure that you are happy. Comparing the cost of the loan is important as well as seeing whether you feel you will be able to repay the loan confidently. You will need to check that you will get everything that you want from the loan and therefore that you are happy that it will provide you with good value for money.

So, you will probably find that online loans will be easy to use. However, if you have not used the Internet before then this is less likely. You will need to make sure that you compare these loans to others though as although being easy is a great advantage there are other things that you should be considering as well. There are many loan types and therefore many choices and it means that you should not rush into choosing one specific type of loan and one specific lender but make sure that you have carefully considered all of the loans that are available so that you pick the right one for you.

Is a Borrowing Money to buy a House Better than Renting?

It can be a big decision to decide to buy a home. Many people will rent all of their lives and be happy doing so, but there are others that have a big desire to own their home and will do everything they can to do so. However, for most people, buying their home will mean that they will have to get a mortgage and this is a big commitment. So, is it worth borrowing all of this money?

Advantages of buying a home

Owning your own home gives you a sense of freedom. You will have a property that you will be able to do more or less what you want with. There may be constraints if the building is listed and you will need planning permission for certain changes as well as your lender and insurers permission, but you will have a lot more freedom to d renovations, decoration and things like this as a home owner compared to a tenant.

The money that you pay into your home will tend to still be there when the house is sold and it may even increase in value so much that your money is worth a lot more than it would have been should you have invested. This means that some people consider their home to be an investment. It is better to see it as an investment for your children as you will always need a home to live in but once they inherit they will gain the money that you put into it. If you are renting you will have nothing to pass on to them.

Once you have paid the mortgage, you will not need to pay an equivalent of rent any more. This means that you can potentially go into retirement or later life without worrying about whether you will be able to pay your rent. You will be able to live rent free.

If you need money for care when you get older or need help with cleaning or personal care then you could use some of the money tied up in the house to pay for it. You could use equity release and remain in the home or sell the house and downsize to get out some of the money. Although there may be some government help for some of these things, if you pay for it, you will be able to choose who cares for you or which care home you move to rather than only being able to pick between limited government options.

Disadvantages of buying a home

When you own your own home, you have to pay for any repairs that are needed on it. This means that if it gets damage or just needs modernisation, you will have to pay out for this. This can sometimes cost a significant amount of money. You will also need to pay to insure it and if you have a mortgage you will need life insurance until the house is paid off.

If you want to move it can be much harder when you own a house. You will need to find a buyer for the home before you can move elsewhere or alternatively find someone to rent your home. This last option is quite tricky at times, especially if you have a mortgage as you will need to swap to a buy-to-let mortgage which has a higher interest rate and your insurance may go up too. You will also need safety checks and may need to pay a letting agent to look after the property for you as well.

There is a risk that the value of your home may go down. If you live in an area which becomes unpopular, floods, has contaminated soil or something like this, it could mean that the house value falls. Although this is rare, it is still a risk and you need to consider whether you are willing to take this risk when you decide whether to buy a house.

The biggest risk is making sure you can pay the mortgage. Those mortgage repayments are a huge commitment. Often, they will be the biggest outgoing that you have each month and if the interest rates go up then they could go up even higher if you have a variable mortgage.

Deciding

It can be a really tricky decision to make as you will need to think about whether you are willing to take the risks of the mortgage over the advantages. The main part of the decision will probably be whether you can afford the repayments. It is worth finding out how much these will be and comparing them to how much you are paying in rent. Rents can be expensive and so you may find that you will be able to afford a mortgage on a similar sized property to the one you are currently renting. If you are moving out form parents then it could be a different matter though as well as if you are moving to a bigger home. So, make sure you work it out carefully.

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