When you seek a term loan from urLoanTM we want you to understand its impact on your finances, your monthly budget, and ultimately use it as a tool to improve your financial health. When approaching urLoanTM, if you are trying to calculate your cost of borrowing and having trouble, you should read this post. urLoanTM is all about helping Canadians from coast to coast improve their financial knowledge.
Your total cost of borrowing can sometimes be tricky to calculate using the posted APR (or Annual Percentage Rate). Why? Because each of your re-payments includes both principal and interest. Let’s take an example:
Let’s say you borrow $1,000 for 12 months at our high-posted rate of 46.95%, you may think you are paying $469.50 over 12-months if you simply calculate $1,000 x 46.95%. However, what you need to keep in mind is that each one of your payments includes principal and interest and therefore with each payment you make, your remaining interest charges move lower and lower, until you have paid the entire balance of the principal off. In reality, an unsecured term loan from urLoanTM for 12 months, with bi-weekly payments, at 46.95% would result in total interest just under $233.00 (not including loan protection insurance). Contact a loan officer at urLoanTM by phoning 1-855-723-5626 ext. 1 and get assistance with calculating your total cost of borrowing, prior to entering into your term loan.
A takeaway from this blog post is that although a longer amortization period on an unsecured term loan with urLoanTM may reduce your payment size, your total cost of borrowing over the life of your loan will be higher because you pay down your principal slower.
Introduced in Canada, in the summer of 2013, urLoan™, by Creditloans Canada Financing Inc., provides flexible personal and debt consolidation loans ranging from $500-$2,500 with repayment terms ranging from 6 to 24 months. Your loan can be approved within 24 hours. Whether you are in a situation where you have little or no credit history, you wish to consolidate your existing debts, or you are trying to simply build or re-build credit, urLoan™ is YOUR LOAN. Call urLoan™ today at 1-855-723-LOAN (5626) or email [email protected] for further information.