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

Raunchy Adaptation of Classic TV Series Arrives on Home Video

  Chips DVD Review by Kam Williams Raunchy Adaptation of Classic TV Series Arrives on Home Video Whenever a classic television series is made into a movie, the buzz always seems to be about whether the screen version will be a creative variation on the theme or merely a campy, cornball, take-the-money-and-run ripoff trading in familiar formulas and shopworn cliches. After all, for every inspired adaptation like Batman (1989), Charlie's … [Read More its Good for You.....]

Books

Gil’s Goodwill!

  Gil Robertson The “Book of Black Heroes” Interview with Kam Williams Gil's Goodwill! For nearly three decades, writer/author Gil L. Robertson, IV has used the written word to enlighten, empower and uplift. The one-time political organizer initially made his mark in entertainment journalism, penning over 50 national magazine covers and contributing bylines to a wide range of publications that include the Los Angeles Times, the Atlanta … [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

How to Hire a Winner in Real Estate

  How to Hire a Winner in Real Estate by Amy Lignor   You want to buy that new house because the twins are on their way. Little Betty and Little John are already there, but who knew you would have even more so soon? What’s that? Oh…well, of course, in order to buy that new home with four bedrooms instead of two, you will also need to sell your present homestead in order to get the money needed to start paying on a new one. And, of … [Read More its Good for You.....]

Lifestyle

Ejogo’s Largo!

    Carmen Ejogo The “It Comes at Night” Interview with Kam Williams Ejogo's Largo! Carmen Ejogo has established a distinguished career in both feature films and television. She is best known thus far for her leading role of civil rights activist ‘Coretta Scott King’ opposite David Oyelowo in Ava DuVernay's universally acclaimed SELMA as well as being singled out for her ‘mind-blowing’ lead role as Sister in SPARKLE alongside … [Read More its Good for You...]

Outdoors

Tidewater 230 LXF Combines Luxury, Family Friendly Features

  Tidewater 230 LXF Combines Luxury, Family Friendly Features By Craig Lamb Are you looking for a family friendly, center console fishing rig in the 23-foot class? Your search is over with the 230 LXF from Tidewater Boats. The all-new 230 LXF has a centerline of 23’ with a wide beam spanning 8’ 10.” The boat weighs 3,200 pounds and has a fuel capacity of 95 gallons for peace of mind on long trips. Best balance of performance and fuel … [Read More its Good for You...]

Sports

You Don’t Have to be Greek to be a “Zorba” Fanatic

  You Don’t Have to be Greek to be a “Zorba” Fanatic by Amy Lignor   No, the sport is not called ‘Zorba’, but it most definitely fits for this article’s title. This most unusual sport is actually called ‘Zorbing’, and has caught on like wildfire across the globe. And now, seeing as that the NBA has wrapped, with Golden State proving that they were determined to make amends for last season; and with the NHL closing up shop for the season … [Read More its Good for You...]

Business

Add Value with Summer Home Renovation Projects

  Add Value with Summer Home Renovation Projects by Amy Lignor   There are a whole list of summer activities for you and the kids planned. Most of them, of course, you want to be nothing but fun, such as grilling outside on the patio or swimming in the pool. However, having the backyard pool and patio are two things you really need in place before either of those activities could be enjoyed. And building this area could be a great … [Read More its Good for You...]

Travel

Finding Relaxation in the Most Remote Locations of All

    Finding Relaxation in the Most Remote Locations of All by Amy Lignor   It is a fact that the largest travel locations are also beyond popular. Among the downsides of this fact is that when you’re looking for peace, quiet, and basically a chance to do nothing more than spend time with yourself and, perhaps, one other best friend, the most popular places don’t offer that. In other words, it is the most remote (sometimes most … [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...]