All short term loans must be compared using preset parameters to identify the best option. Cash Carrot will help you get quotes from all major lenders in the UK. You can study the amounts, rates of interest, repayment term and other clauses of these short term loans to make an informed decision. The entire process seems pretty straightforward and should not be complicated in any way. However, there is the possibility of an unreasonable fee or charge hidden somewhere in the clauses. Some lenders will be upfront with all their fees and charges. Whether or not you like them and would agree to pay those charges is a different issue, at the very least you are aware of being charges. A worse scenario is being surprised with a fee that you had no idea of. It is absolutely imperative you study the clauses and look out for any unreasonable fee or charge for short term loans.
- The first fee you may want to consider is brokerage or commission. Cash Carrot doesn’t charge any commission. There is no brokerage at any stage so you are sorted. However, Cash Carrot’s approach is not the universal policy. There are many brokers of short term loans in the United Kingdom that charge a substantial commission. The fee can be anywhere from a nominal fixed rate to a percentage of the loan amount approved. You should not pay any such commission since you have an option to deal through Cash Carrot. Additionally, you should not be kept in the dark about such a fee existing and subsequently being charged when the loan gets disbursed.
- There should be no processing fee. There are lenders that make it unequivocally clear. There are lenders that remain noncommittal. Then there are a few that would deliberately mislead you or just withhold information. You must indulge in due diligence to know if a lender charges any processing fee. You can get help from the broker, do your own research and read reviews to know the truth. Read the clauses so you can be completely sure of it.
- Most lenders will charge you a fee for late payment. Such a penalty is common in unsecured and even some secured short term loans. There may or may not be any cool off or grace period within which time you can pay an installment or make your final repayment. Be watchful of such penalties and know how much they will be before you sign on the dotted line. Some late payment fees or penalties are truly unreasonable. It is alright if every lender is charging what may be considered a standard or reasonable fee for late payment.
- Don’t pay any prepayment fine. Some lenders will want you to repay exactly as your term allows. You cannot delay any repayment and you cannot prepay to get over with the loan sooner. There is usually no interest relief in case of unsecured short term loans so prepayment doesn’t have any incentive. Even then, you should check for clauses that discuss this issue.