Are You Paying Too Much in Loan Fees? Here’s How to Avoid Them
When you’re considering a personal loan, the last thing you want is to be caught out by unexpected charges. Many lenders advertise attractive rates, but once you read the small print, extra fees can quickly add up.
At Cockle Finance, we believe borrowing should be simple, fair, and transparent. This guide will help you understand the types of fees lenders often charge and show how Cockle Finance keeps things straightforward.
Common Personal Loan Fees to Watch Out For
Processing or Admin Fees
Some lenders charge an upfront fee simply to set up your loan. It may be called an “admin” or “processing” fee and can add unnecessary cost before you even receive your funds.
Tip: Always check whether your lender charges these fees. With Cockle Finance, there are no processing or admin fees, so the amount you apply for is the amount you receive.
Late Payment Fees
Missing a payment can be stressful enough without additional charges. Late fees can quickly increase the total cost of your loan.
Tip: If you think you might miss a payment, contact your lender first. At Cockle Finance, we don’t charge late fees and work with you to find a solution if you’re struggling.
Missed or Default Fees
If a payment is missed entirely, some lenders apply default fees, which can make it even harder to catch up.
Tip: Look for lenders that focus on support rather than penalties. Cockle Finance doesn’t apply missed payment or default fees.
Prepayment or Early Settlement Fees
Paying off your loan early should save you money, but many lenders charge an “early settlement” fee instead.
Tip: Always ask if early repayment affects the interest. With Cockle Finance, paying off early reduces the interest, so you only pay for the time you’ve borrowed.
Why This Matters
Understanding these common fees helps you make smarter borrowing decisions. By avoiding unnecessary charges, you can save money and reduce stress. Cockle Finance is committed to:
- No hidden or surprise fees
- Clear repayment terms from the start
- Interest savings if you repay early
- Supportive customer service if you face repayment difficulties
Borrow with Confidence
When searching for personal loans in the UK, transparency matters as much as speed. Cockle Finance ensures that what you see is exactly what you pay, so you can borrow with confidence.
Want to learn more about how we help people borrow smarter? Start your application today.
Representative example: £200 payable over 28 weeks at £12 per week. Rate of interest 68% fixed; Representative 667.94% APR. Total cost of credit is £136. Total amount payable is £336. Applications are subject to standard lending criteria and all loans are subject to status. Over 18’s only.
Cockle Finance is Authorised & Regulated by the Financial Conduct Authority, FRN 804740