Affordability is what both lender and borrower worry about when it comes to an affordable loans. As a borrower, you wouldn’t want to borrow more than you could afford to repay. Neither from a lender would you want to be given more than you could afford.
Thus, affordability is all about being able to comfortably handle your financial commitments. But when it comes to asking for a loan, how is someone’s affordability calculated?
It is through your credit score and affordability based on your income and outgoings, that shows how much you can borrow. As how much you can borrow, is based on how much you can repay.
Understanding what is classed as affordable is not easy, as each lender have their own set of rules. But you will never know what they are, as lenders will never tell you.
Over the years, we’ve seen people and companies struggle with the loan amount. At times, a lender gives an amount that is impossible to recover. Whilst at other times, the borrowers are dissatisfied with what they receive.
Consequently, to make the affordable loan process smooth and hassle-free, a number of questions are asked. The Pixie Loans application form has been designed to allow lenders to perform an affordability check. They can do this on the information that is captured, allowing them to make an initial decision quickly.
Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed)
Look at our application form. The questions we ask allow us, and the lenders, to assess how much you can afford to repay. We take your income and deduct your total monthly outgoings, showing your free income each month.
From this, your affordability to make the monthly repayments is assessed.
USE OUR LOAN CALCULATOR
Firstly total all your monthly outgoings including food, heating, rent, clothes, transport, going out, phone, internet etc. Then take this away from your income. Alternatively, look at your bank statement and see how much you spend each month.
Then use our loan calculator designed to calculate your the payments on a loan. Which will tell you how much you can borrow that can easily be repaid.
We do understand you might need a lot more than what a lender offers, This is why it is important to know your ability for quick loan repayments. This way you know why the loan offered is the amount it is. They will not want to entrap you in a burrow of much larger financial issues that affects your credit score.
To help keep your self-esteem intact, Pixie Loans has designed the affordability checker / loan calculator. It lets both parties know where the borrower stands financially and what they can afford as a loan repayment each month.
All we do is gather the basic information of the borrower which includes name, address, professional status, yearly income, how much they wish to borrow and how long they wish to repay the loan
Once we have it all, we feed it to the loan calculator and voila! We have the results!
From the loan calculator results you can see how much your affordable loan will cost you each month and if you are able to afford the repayments. It will also show the RAPR for that lender and how the cost of the loan will be.
But, let us assure you, whatever the outcomes are, we at Pixie Loans will try our utmost to help you in the best possible way.
To many, the affordability checker may seem like a test that has been designed to rob them of their right to borrow as little as £100 loan up to as much as a £25,000 loan.
But in reality, it has been more helpful to people who have always trusted us with their money problems. The loan calculator only uses basic information to ensure you borrow an amount of money which can be repaid easily. We aim to make financing easier for everyone, especially for those who are already trapped in a tight corner. With us at your back, it is time to breathe in the fresh air and relieve all the stress because borrowing has surely never been easier than today!