How To Get The Best Graduate Loan

If you have recently finished university, getting started in the 'real
world' can be tough if you don't have the funds to start on your chosen
career path. If you have dreams but don't have the cash to follow them, then
you should look at getting a graduate loan to help you out whilst you find
your feet. Here are some hints and tips about how to go about getting a
graduate loan and how such a loan could help you.

What are graduate loans?

In essence, graduate loans are just a form of unsecured personal loans. They
are for people who have recently finished university and want to get ahead
in their career or for any other purpose. Graduate loans usually consist of
a lump sum of around £1000 to £25,000 and are repayable over six months to
ten years.

What are the advantages?

Although graduate loans are basically unsecured personal loans, because they
are for people starting out in their careers, lenders often offer better
rates. The interest rate will be lower than regular personal loans, and the
amount you can borrow will usually be greater than you could normally
secure.
However, graduate loans are still based upon your credit rating and so rates
may vary depending on your status and current income.

Deferred payment

Another advantage of graduate loans is that they sometimes offer deferred
payment options, both at the start and at various points throughout the
loan. This means you can delay your payments for a number of months in order
to get your finances in order. Of course, doing this still means you will be
charged interest, and so will end up paying back more.
However, it can be useful if money is tight or you want time to sort things
out before you begin repaying the loan.

Charges and costs

Although typical APRs are low, there are other charges to consider when
taking out a graduate loan. For instance, missing payments can be expensive
with late fees of anything up to £40 for a missed payment. Also, if you want
the money within 24 hours of applying you might have to pay a fee of around
£50 or more for the privilege. However, graduate loan charges are fairly
similar to those of any other personal loan. Just make sure that you read
the terms and conditions before applying.

What can I use the loan for?

What you use the loan for is up to you, but usually graduate loans are used
to pay off credit card debts from university and to help start you off in
your chosen career. This might be to buy the right smart clothes for your
job, or to pay to move to a new city, or for travel expenses. Getting
everything you need to start your career can be expensive, especially if you
already are short of cash because of university debt. Getting a graduate
loan will help you to sort out your finances and put you in a position to
get what you need to move up in the world.

About The Author: Peter Kenny is a writer for http://thriftyscot.co.uk
Please visit us at http://www.loanwize.co.uk and
http://www.thriftyscot.co.uk/Loans/