If your home needs some repairs and you do not have any savings, then you might be looking at getting a loan to help to pay for it. There are lots of loans around and you may find it rather confusing trying to pick the right one for you. It is worth making sure that you find out about the loans that are available to you so that you pick the one that will work best for you. If you have a poor credit record then your choice will be limited, for example, but there will still be loans available that you can choose from.
Poor credit loans
There is now a good selection of poor credit loans such as those offered by HappyPenguin Loans. These are loans where the lender will not judge your harshly on your credit record. They will lend to those that do not have a perfect credit record – those that other lenders will choose not to lend to. These types of loans vary and you will find that they tend to best serve particular purposes. A payday loan is best for emergencies, for example, as it will provide a small amount of money very quickly. A guarantor loan is great if you need to borrow a lot of money and have someone available who will cover the repayments if you cannot afford to. An instalment loan will allow you to borrow a bit more money than a payday loan as you will be able to repay in instalments which makes the repayment more manageable. There are other types as well but these are the main ones. It means that there is a selection of loans available to choose from and it means that there is a chance that you will find a loan that will suit you and your needs.
The instalment loan is probably the best all round loan for most borrowers. This is because it has a number of advantages over the others. Firstly, you will not need to find a guarantor which can be a big advantage for many people. The guarantor needs to be someone that you know well that has a good credit record. It is possible that you will not know someone who fits this description or if you do, you may not want them to help you with the loan. You might not feel like you can ask anyone for help like this and rely on them in this way. A payday loan has to be repaid quickly and if you want to borrow a significant amount of money for a home repair, then this may not be right for it. You may not be able to borrow enough but you also may not be able to afford such a large repayment all in one go, which is what will be expected in the case of the payday loan.
Instalment loans for home repairs?
You will be limited in how much you can borrow for your instalment loan and so whether it will be suitable for home repairs might be determined by this. However, if there is enough money available you should still check a few things. Firstly, work out the cost of the loan and think about whether you think that it is worth this cost. If the work needs doing urgently and will get more costly if you do not get it repaired, then it could be a good idea to go ahead with it and pay the loan costs as you could still save money in the long run. It is also wise to look at the repayment schedule and make sure that you will be able to afford the repayments that you are expected to make. If you miss a repayment then the loan will get more expensive as there will be an additional fee or charge, as they would be from any loan, so be sure that you can afford them. If you are not sure, then compare lenders as you may find one that offers the option of cheaper instalments that you might be more able to repay.
Choosing whether you should use a loan for home repairs and whether this specific loan is right for you can be a difficult decision. It is worth spending some time doing the research so that you get it right. You will need to consider how urgent the work is, how much extra it will cost if you use a loan and whether you can manage the repayments. Think about your current finances and what you will be able to manage and all of this should enable you to make a well-informed decision. Take your time and weigh up all the options as it will be well worth it in the end so that you can come up with the best plan to sort out your situation.