Will Instalment Loans be a Good Way to Pay for Home Repairs?

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.

Instalment loans

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.

Should I Encourage my Children to try Guarantor Loans?

As a parent we like to help our children as much as we can. Helping them out with finance is one area that parents will often support their children. This could be through teaching them how to handle their money well, lending them money or even giving them money. Some parents may even wish that they could help their children even more than they are able to. There are lots of things that they could try and they may consider helping them out with a guarantor loan.

What is a guarantor loan?

A guarantor loan is a special type of loan where someone with a poor credit report is able to borrow a significant chunk of money. They will be able to get a nice sum which they could use perhaps for a car, course or other purchase and they will repay it in instalments. It opens up borrowing options which might not normally be available to those with a poor credit record. They will need to find a guarantor who will cover the repayments if they miss any. This means finding someone with a good credit record who is happy and well-off enough to be able to cover those repayments as often as is necessary.

What could it help with?

A guarantor loan is something which can be helpful for lots of things. As you can borrow quite a large sum of money it could be enough to buy a vehicle, pay for a really nice holiday, go towards a deposit on a property or things like that. The amount can allow life changing things to be done, which will certainly have an impact. The lenders do not specify what sorts of things the money needs to go towards and so you can pick anything that you wish. However, you might or might not think that loans should go towards certain things. Some people might feel that they have to go towards things that will help you to better yourself, such as education or buying a house, but others may feel that there is nothing wrong with borrowing lots of money so that you are able to have more fun in your life.

Is it a good way to help a child?

If a parent would love to help their child financially but does not have cash to help them then this can be an alternative way that they could do so. It will mean that they will be able to get some extra money without having to earn it and they will be able to buy themselves what they need or want. They will then not have to overly worry about the repayments because their parent will pay for those if necessary. If, as a parent, you are confident that you will be able to afford to do this then you might think that it is a kind thing to do as it will mean that they will be able to buy the things that they need. It is wise to be sure that the child has every intention of making the repayments themselves though. If there is a chance that they may not bother because they know that the parent will pay instead then the parent may as well just give them the money each month and forget about the whole loan! Most children would not have this attitude though.

Is encouraging borrowing good?

Some people might just think that it is not a good idea to encourage their child to borrow. However, there are different types of borrowing, good and bad and discouraging all borrowing can actually be a bad thing for your child. If you teach them that they should never borrow then they will not be able to buy their own home, go to university or get a business loan. If they want to own a home, study at university or run a successful business then it might be necessary to do this. In fact, you might not be able to better yourself financially without borrowing money. Therefore, you could argue that it is good to encourage your child to borrow. However, it is equally important to teach them have to be wise and frugal with money and how to pick the most appropriate financial products; including loans. So, the best thing financially you can do for your child is actually to teach them about finance and how to use it to their advantage. Then you and them together should be able to carefully decide whether the guarantor loan is a good idea for them based on what they want the money for, what their financial situation is like and whether they can afford the repayments. Discussing things carefully should allow you to both come up with a well informed and balanced decision on the matter.