Applying for an easy loan may seem to be one of the simplest things to do. In fact, if you do not read all the small print, and really know what you are letting yourself in for, it can be much worse than you expect.
That is why, before you apply for easy loans New Zealand, you should be aware about these things.
High interest rates — Make sure you know what the interest rate is going to be throughout the entire period of the loan. After all, not only are easy loans usually at a much higher interest rate than a more traditional loan, sometimes that interest rate can increase as the loan progresses.
Read the small print before signing up for a loan, so that you know exactly how much money you will be paying in interest over the term of that easy loan.
Penalties — There can be very high penalties for anyone that either makes a late payment or even repays the loan much faster than the company would like.
Find out about any and all penalties before you accept an easy loan, as you do not want to find out you are going to have to pay hundreds more dollars in penalties than you expected.
Shorter repayment terms — A traditional loan company may be able to give you a loan for five, ten or even twenty five years. Depending on how much you need and how long you need to pay it back.
A company offering you an easy loan, however, may have much shorter repayment terms. Repayment terms that are at very high interest rates as well.
Make sure you know exactly how long you have to repay that loan, and be sure you can afford that high monthly payment during the entire term of the loan before you take it out.
Hidden fees — Just about every company offering an easy loan will also have hidden fees you know nothing about.
This is why reading every part of that contract is key before you take out a loan, and asking questions about the elements in the contract that you do not understand. Otherwise, you could find yourself paying hidden fees that you had no idea would ever be part of a loan.
Monthly or weekly payments? — Find out what your repayment options are when it comes to the times during the year where each payment will be due.
Some companies offering an easy loan mandate weekly repayments. This can be difficult for many people, especially if they only receive their pay check once a month. It also gives you many more repayment times where you could end up being late, and thus having to pay a very high late fee.
Only choose a company that allows monthly payments on your loan, and you are far less likely to forget to repay one payment or simply not have enough money to do so.