Google+

How to Avoid Hidden Loan Charges

Piggy Bank

Laura Dilon shares a brief guide on saving some bucks by avoiding hidden loan charges. 

If you’re in the market for a new house, a new car or even just a personal loan, it’s important that you be aware of the hidden charges that many of these loans contain. While some lenders will explain these charges in detail, others will avoid discussing them altogether, hoping that you don’t notice them before you sign your loan agreement. If you’ll be shopping for a new loan in the near future, here are the hidden charges that you need to be aware of:

1. Mortgage Loans

Before you sign the documents that will put you into your new home, look at the fine print with a careful eye. Closing costs, origination fees, points, prepayment penalties and even payment protection insurance can all be buried on the last pages of your loan documents. While some of these charges can’t be avoided, you may be able to negotiate with your lender to remove them or have some costs lowered. Most lenders will be more than happy to explain these charges to you, but many will not do so unless you ask.

2. Vehicle Loans

Just like buying a house, purchasing a new vehicle must be done with your eyes wide open. Forget the heady rush that you feel looking at that shiny new car and get down to the business of scouring your finance offer. Hidden charges may include an extended warranty, car alarm, pain sealant, credit life insurance and even GAP insurance. Before you sign your loan documents, tell your salesperson that you want to see a disclosure using the menu system. This report will clearly list the negotiated price of the new car and the prices of extras that have been added. Paying for these add-ons is not required to secure your loan so if you don’t need them, ask for them to be removed from the deal.

3. Personal Loans

While personal loans are fairly straight-forward, especially when they don’t involve the borrower putting up collateral, there are still fees that you need to be aware of. You may end up paying back more money that you think if your lender has hidden an adjustable interest rate, PPI or prepayment penalties in the fine print of your loan agreement. When looking over your loan documents, make sure that every line is filled in. Blank lines are an invitation for unscrupulous lenders who will fill in the numbers after you’ve left the office.

4. Payday Loans

Just like personal loans, payday loans don’t come without their pitfalls. Make sure that you understand exactly how much you will be paying back over the brief lifetime of your loan. People tend to get in trouble with payday loans when they extend their repayment several times. Instead of paying back your loan plus interest, your lender will allow you to make an interest-only payment, usually no more than five times. Before you take advantage of these extensions, you should be aware of just how much you will really end up paying back.

5. Student Loans

Student loans come with disclosure statements that are fairly straightforward. The problem with student loans is that students typically don’t know how much they’ve borrowed in total and don’t understand how much interest they will be paying. Students are also frighteningly unaware of how much deferring their loans will cost them. If you’ve recently graduated from college, do whatever it takes to start paying your loans when they come due.

No one is going to hold your hand during the loan process; it’s up to you to read the fine print and make sure that you aren’t be charged for unnecessary items. If you’re in the market for a loan, make sure that you read the fine print and question the things that you don’t understand. If you qualify for a loan with one company, you can always qualify with another who may treat you more fairly.

About the Author

Laura Dilon is a guest writer for www.ppiclaims.uk.com where you can find information on mortgages, interest rates, and special financing savings.

Entertainment

Abductee Seeks to Escape Kidnappers in Mindbending Sci-fi Thriller

  Rupture Film Review by Kam Williams Abductee Seeks to Escape Kidnappers in Mindbending Sci-fi Thriller Renee (Noomi Rapace) was leading an unremarkable existence in suburban Kansas City the day she was abducted by five strangers after her car broke down. Until then, she was just an average divorcee' doing her best to shield a young son (Percy Hynes White) from an embittered ex-husband's (Paul Popowich) vicious barbs.   Otherwise, … [Read More its Good for You.....]

Books

Cop under Fire

  Cop under Fire Moving Beyond Hashtags of Race, Crime and Politics for a Better America by Sheriff David Clarke, Jr. with Nancy French Foreword by Sean Hannity Worthy Publishing Hardcover, $21.99 272 pages ISBN: 978-1-617-95857-1 Book Review by Kam Williams “David Clarke refuses to bow a knee to political correctness, and he refuses to give his party over to the hands of black activists whose politics would destroy America. … [Read More its Good for You...]

Art

The Day After the Day Of

  The Day After the Day Of by Paul Ilechko   The sky sheds its tears. This morning is the morning of the day after. The day of mourning, the day after the day of.  I beseech the sky to shed tears in order to wash away the tears on my face.   This is the first day of the time after. This is the beginning of a new time, the days of pain, the days of sorrow. We are in mourning. The sky looks down and sheds its tears for … [Read More its Good For You...]

Real Estate

History Being Sold to the Highest Bidder

  History Being Sold to the Highest Bidder by Amy Lignor   For the longest time, scientists and archaeologists have been confused and bemused by various discoveries they’ve unearthed that offer little or no explanation as to the who, what, and why of the people who created these things or left them behind. Even now, in 2017, there are discoveries being studied; stories that were once legends now have actual bits of proof being found that … [Read More its Good for You.....]

Lifestyle

Make Way for Dulé!

  Dulé Hill The “Sleight” Interview with Kam Williams Make Way for Dulé! Born in Orange, New Jersey and raised in Sayreville, Dulé Hill began attending dance school when he was 3 years- old. He later received his first break as the understudy to Savion Glover on Broadway in “The Tap Dance Kid.” Dulé went on to perform the lead role in the musical’s national tour. And his additional stage credits include “Bring in ‘Da Noise, Bring in … [Read More its Good for You...]

Outdoors

Cajun Baby chooses Skeeter for a reason

  Cajun Baby chooses Skeeter for a reason By Craig Lamb Cliff Crochet, known on the pro bass tour as the Cajun Baby, has a lot to be proud of besides his south Louisiana roots. In Cajun country, boats are part of life, either for a livelihood or connection to the outdoors for recreation with friends and family. Crochet quote about Cajun roots. Crochet's resume includes 9 Top 10 finishes, three appearances in the Bassmaster Classic, and a … [Read More its Good for You...]

Sports

“Sin City” Becomes Acceptable?

  “Sin City” Becomes Acceptable? by Amy Lignor   So…what changes will occur if an NFL team hits Las Vegas? Not many, actually. Perhaps more of the ‘contract money’ will be lost considering the blackjack tables ARE right in the vicinity; however, NFL owners seem just fine with the fact that the Raiders will once again wave good-bye to their “Nation” and relocate to Sin City. But when you look at the news headlines, the NFL has and … [Read More its Good for You...]

Business

Buying & Selling: Learning the Art of the Tag Sale

  Buying & Selling: Learning the Art of the Tag Sale by Amy Lignor   When people speak about making a few extra bucks, there is more than one way to skin a cat these days. Perhaps you’re trying to save up for a vacation for the family to take this summer. Perhaps you are looking for collectibles to invest in. Oddly enough, many people do not realize what, exactly, was in Great Grandma’s house when she passed on to a happier place. … [Read More its Good for You...]

Travel

Vacations…Underground

  Vacations…Underground by Amy Lignor   There are millions of spots to visit and sites to see around the world when it comes to vacation time; however, there are also those you can’t necessarily “see.” In this world of digital technology and highly imaginative architecture that creates buildings that are higher and more “glitzy” than ever before, it is important to remember that in ancient times, people were building “down.” Various … [Read More its Good for You...]

Green Living

Creating the Perfect Vegetable Garden

  Creating the Perfect Vegetable Garden by Amy Lignor   Many are still dealing with that wintery mix Mother Nature just loves to toss down from the sky this time of year. Yet, that gardener living inside the soul – the one just dreaming of the sunny skies and lazy rainy days that are must-haves in order to grow the best vegetables possible – is already jotting down the facts, tricks and tips they need to know in order to make that … [Read More its Good for You...]