Key Reminders When Renewing Your Loan
If you are in the position of wanting to renew a loan, you will have to look at several factors whether you decide to go ahead. Currently there are a number of different people taking out what are known as cash advance loans. In this way, you will need to be prepared to look into the consequences of renewing before your initial loan comes to an end. But what are some of the important reminders to take into consideration if and when you intend to renew your loan?
Is it necessary?
One of the main aspects you have to look at is the fact that if renewing a loan is going to be suitable or not for your specific needs. This is especially the case when it comes to supporting your overall finances, especially if you are short at the end of the month. Ultimately it is down to individual choice but the main point is not to overstretch your economic belt too much. In this way you need to remind yourself;
- Is renewing a payday loan going to be suitable?
- Will it ensure it can help with my borrowing needs in the short term?
- Can I repay everything back on time?
Amount
Another important area you should ask yourself is the amount of money you want to borrow again when renewing. Currently you can have the opportunity to borrow hundreds not mention thousands as far as advanced loans are concerned. However, you should take account a number of different factors such as;
- How much you will be paying back if you renew the loan.
- Look into any extra charges such as late penalty fees or additional interest charges.
- Ensuring that you have the necessary funds in the short term.
Rolling over
On the other hand, there are also some payday lenders that give borrowers the option to roll over their loans if they cannot afford to make up the payment. You will need to check via the lender whether or not your short term loans no credit check allows rollovers accordingly. By extending your existing loan agreement and as long as you set yourself dates when you need to repay the additional interest and charges, there will not be an issue.
Extending payment
One of the main areas when looking to renew a loan is whether or not you will be able to extend your payment. Thanks to a host of responsible lenders in the payday loan industry, you can have the ability to renew your loan accordingly. In fact, some may be able to renew your loan for at least two consecutive times. Yet you need to be aware of the features including;
- You paying just the interest which will not increase your loan repayment.
- The balance being kept to a minimum so your debts don’t spiral out of control.
- Only going ahead when given permission by you as well as the various terms and conditions of the lender.
APR
When taking out an advanced loan and renewing it, you should take into consideration the APR rates. If the loan term as with the majority of payday lenders are for one month or less, the rate is normally calculated according to if you had the same loan term over twelve months. Therefore, when renewing you should look out for;
- The APR rate on the amount you have borrowed.
- A shorter loan where you only repay smaller amounts.
- The interest you have to repay.
- The duration of the loan term.
- How often that you will have to pay back the loan agreement.
- The actual amount of the loan arrangement which has been agreed with the payday lender.
Hidden costs
Please note that the rate does not take into account the total costs. If you miss a payment or are late then a penalty fee may be incurred. This means you should look at all the hidden costs in order to identify any charges not to mention see if there are late penalty fees.
If you are thinking of renewing a loan you really need to consider all the possible scenarios before you decide to commit. If you follow these steps, you can be rest assured of managing your debts easier.
About the Author:
Paydayloan123 is a free loan matching service in the UK. They offer short term loans with no credit check. Check out their website for more details.
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Category: Loans
