Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Loans shopping experience:
1. Compare - without doubt the biggest advantage that the Loans offers shoppers today is the ability to compare thousands of Loans at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Loans? Wrong! If the Loans is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Loans then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Loans? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Loans and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Loans wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Loans then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Loans site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Loans, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Loans, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
A
loan is a type of
debt. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial
assets over time, between the wiktionary:lender and the
wiktionary:borrower.
The borrower initially receives an amount of
money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the
debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.
Acting as a provider of loans is one of the principal tasks for
financial institutions. For other institutions, issuing of debt contracts such as bond (finance) is a typical source of funding. Bank loans and credit are one way to increase the money supply.
Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.
Types
Secured
A
mortgage loan is a very common type of debt instrument, used by many individuals to purchase
housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security - a
lien on the title to the house - until the mortgage is paid off in full. If the borrower
Default (finance) on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter - often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.
A type of loan especially used in
limited partnership agreements is the recourse note.
Unsecured
These may be available from financial institutions under many different guises or marketing packages:
The interest rates applicable to these different forms may vary depending on the lender, the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the
Consumer Credit Act 1974.
Abuses
Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a
loan shark.
Usury is a different form of abuse, charging excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges" Credit card holders pay Rs 6,000 cr 'extra'
May 03,
2007Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.
See also
- Finance, Personal finance, Settlement (finance)
- Debt, Consumer debt, Debt consolidation, Government debt
- Bank, Fractional-reserve banking, Building society
- FAFSA
- George D. Sax and the Exchange National Bank of Chicago - Innovation of instant loans
- Annual percentage rate (a.k.a. Effective annual rate)
- Interest-only loan
- Student loan
- Payday loan
- Refund Anticipation Loan
- Federal student loan consolidation
- Federal Perkins Loan
- Stafford loan
- Title loan
- Syndicated loan
References
A
loan is a type of debt. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial
assets over time, between the
wiktionary:lender and the
wiktionary:borrower.
The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as
interest on the debt. A borrower may be subject to certain restrictions known as
loan covenants under the terms of the loan.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as
bond (finance) is a typical source of funding. Bank loans and credit are one way to increase the
money supply.
Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.
Types
Secured
A mortgage loan is a very common type of debt instrument, used by many individuals to purchase
housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security - a
lien on the title to the house - until the mortgage is paid off in full. If the borrower
Default (finance) on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter - often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.
A type of loan especially used in
limited partnership agreements is the
recourse note.
Unsecured
These may be available from financial institutions under many different guises or marketing packages:
The
interest rates applicable to these different forms may vary depending on the lender, the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the
Consumer Credit Act 1974.
Abuses
Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a loan shark.
Usury is a different form of abuse, charging excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges" Credit card holders pay Rs 6,000 cr 'extra'
May 03, 2007
Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.
See also
References
