Financial Wealth

Business & Finance Articles

 Getting Your Best Deal on a Consolidation Loan
 By: John Mussi

 

If you find yourself having to make too many payments a month, you might consider getting a consolidation loan.

Used for a variety of purposes, a consolidation loan can take multiple loans (such as personal loans and auto loans) and combine them into a single payment, or it can provide money to pay off a variety of bills and debts and consolidate them into a lower monthly payment.

People of all credit levels can apply for a consolidation loan for different reasons, and the loans can be secured or unsecured.

Secured loans and unsecured loans

In most cases, a consolidation loan is a secured loan… meaning that some property of value is used as collateral, or a guarantee that the loan will be repaid.

If the borrower doesn't repay the loan, then the lender can legally take possession of the property (most often an automobile or real estate) and sell it to regain the money that they lost through the loan.

Occasionally, though, a consolidation loan will be unsecured… meaning that no collateral is needed. If a consolidation loan is unsecured, then it is usually being used to consolidate other loans held at the same bank or finance company and is being issued to a regular customer or to a customer with a very good credit rating.

On very rare occasions, loans that are being used to consolidate debts may be unsecured, though they are often for much smaller amounts than typical loans of this type.

Unsecured loans are charged a higher interest rate than secured loans due to the lack of collateral as a guarantee of repayment.

Shopping around for a consolidation loan

Unless a consolidation loan is being used to combine other loans at a single bank or finance company (or unless the borrower has a lot of business with a particular bank or lender), it's a good idea to shop and compare loan rates among several institutions to find the best interest rates and lending terms.

When comparing the rates and terms of several lenders, you should always use the same collateral (if any is being used) and request the same amount at each so that you can get quotes for the same loan at the different locations.

Go to the lenders that you've had positive experiences with in the past first, as they're likely to give you the best rates, and then check a few banks or finance companies that you've never dealt with to see if their rates are any better.

Once you've obtained several quotes, compare both the interest rates and the repayment terms among all of them… you'll be looking for the lowest interest rate and the most flexible terms.

When you find the lowest interest rate with terms that you like, go back to that lender and apply for your loan, making sure that you get the same rate and terms that you were quoted.

--

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

Return to Index Return To Universal Wealth Creation Home Page

About The Author John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

This article was posted on August 07, 2005  

http://www.universalwealthcreation.com   Wealth Creation | Financial Wealth

Copying or republishing this article is permitted with this footer included

 

Collect a Free 260 page ebook here: Universal Wealth          Earn up to $1,000 per referral: Wealth Creation Affiliate

 

These property, finance, stock market & business articles have been supplied in the interest of Universal Wealth Creations visitors who want to expand their knowledge in the wealth creation & investment fields.  All the business, finance, stock market & business articles have not been read as they are submitted remotely, so if you find any questionable facts in here or simply do not like it, please email webmaster@universalwealthcreation.com and we will review the material. As we find time to do so, we will go through all articles and remove any that appear not suitable. Other sites we recommend here at Universal Wealth Creation are: 21st Century Academy with Jamie McIntyre, Investor Finance, Universal Trading Solutions which promotes great wealth creators like: Kim Reilly, Simon Martin, Justin Beeton, Louise Bedford, John Kaye, Daniel Kertcher & more. They run great seminars across the country. At times we will publish dates for these seminars as they are made available around the counrty. Meanwhile, there is a great opportunity to learn about the finance, stock market & property investment field through reading these kind of articles. Learn about share trading, options, futures, CFD's, derivatives, warrants, indices & more in the stock market. You will also learn plenty about business, finance & property investing through authors opinions in the marketplace.  Enjoy your journey towards financial freedom. We hope you will enjoy your visit.

Regards    Sean Rasmussen - Universal Wealth Creation Pty Ltd

Financial Wealth | Wealth Creation Ebook | Wealth Creation Ezine | Financial Investment Books | Kim Reilly | Jamie McIntyre DVD | Jamie McIntyre Homestudy  | FAQ | Jamie McIntyre Testimonial | Wealth Creation Forum | Wealth Creation Affiliate | Bourse Data | Australian Property | JB Global | Justin Beeton | Investor Finance | Guy Bower | 21st Century Academy | Pacific Investor Group | Forex Currency Trading | Property Investment | Property | Covered Calls | Property Sourcing | Property Articles | Business Articles | Finance Articles | Resource Directory | Jamie McIntyre | Business Opportunities | Property Investing | Share Trading | Renting Shares | Australian Property | Investor Finance Articles | Property & Finance Links | Wealth Creation DVD | Perth Property | Adelaide Property | Brisbane Property | Hobart Property | Melbourne Property | Sydney Property | Australian Property | ASX Links | Work From Home | Making Money | CK Locke | IPO | Finance Review | Deposit Bonds | Bank Guarantees | Investment Tutorial |

Site Map