Eight financial considerations for accountants when taking a personal loan
Steve Deutsch, CEO of Wesleyan Bank and Syscap, outlines some key considerations for accountants when considering taking out a personal loan.
Wesleyan Bank is a proud provider of personal loans to professionals like accountants. Our lending criteria is different to others as we take into consideration an individual’s professional status, as we understand that the demands of their career may make their credit history look a little different from the norm. So, whatever the reason you may have for taking out a personal loan Wesleyan can help.
So, if you are thinking of taking out a personal loan make sure you have ticked off the following key considerations:
1. Be careful of the advertised rate
You might not actually get the interest rate advertised with the loan, which is known as the representative APR (or annual percentage rate). This is the rate used in advertising or on banks’ websites, but not everyone will qualify for it. Indeed, the loan rate may be tailored to the individuals credit rating.
2. Include fees in your calculations
Look out for any arrangement fees, which will make a loan much more expensive. Make sure you include them when you work out how much the loan is going to cost you. Arrangement fees may be included in the APR – which is why you should compare APRs rather interest rates.
3. Check for penalties
You can make over-payments or pay off a personal loan in full before the end of your agreement without penalty.
4. Always read the small print
Before you apply for a loan, check the small print to see if you’re eligible. Some best buys come with certain conditions, i.e. some banks may only offer their best loan rates to current account customers.
5. Look out for charges
It might seem unlikely at the time when you take out a personal loan – but don’t forget that it’s possible you will be able to pay off your debt early. Many loan providers will apply a charge if you wish to do so, so it’s a good idea to check how much this might cost you before you make your decision.
6. Check your credit rating
If you plan to apply for a market leading personal loan, it’s crucial that you check your credit rating first. Lenders are not required to offer their advertised 'typical' APRs to every applicant. Therefore, if your credit rating is not in good shape, you may be offered a more expensive deal than the low rate loan you originally applied for.
7. Be aware of your online footprint
When you apply for a loan online, most applications will leave a “footprint” on your credit record which lenders check before approving a loan. Having lots of applications on your record may make lenders see you are more desperate or in financial difficulties. Lenders may see you as more of a credit risk, so your latest loan application could be less likely to be approved.
8. The cooling-off period
You have a 14-day cooling-off period from either the date the loan agreement is signed or when you receive a copy of the agreement, whichever is later. If you cancel, you have up to 30 days to repay the capital and interest.
Find out more about a personal loan from Wesleyan Bank
About the author
Steve Deutsch is Chief Executive Wesleyan Bank Ltd & Syscap Ltd. Steve has been a key member of the Wesleyan Group’s Executive since 2005, undertaking a number of roles in that time across the Group including Operations Director, Commercial Director and COO - Sales.
About the company
Part of Wesleyan Group of Companies, Wesleyan Bank provides personal and commercial finance to accountants to help support them in both their personal and professional aims. As we understand the demands of your profession, we will take into account your professional status when considering your application. Unlike many lenders, Wesleyan Bank won’t charge you arrangement or early repayment fees
As an ICAS member discount partner, we pride ourselves on our expertise of the accountancy sector and can help to tailor our flexible finance plans directly to your own unique requirements. We also provide special offers to ICAS members who utilise our finance facilities.
This blog is one of a series of articles from our commercial partners.
The views expressed are those of the author and not necessarily those of ICAS.