Most people will look for the best personal loan at the cheapest possible price. However, the cheapest loans are based on different criteria for different individuals.
Types of UK loan available
Personal loans: unsecured loans, usually offered against your credit score
Secured loans: usually secured against your home, more suitable for long term loans in the UK, with payment terms of up to 25 years.
Car loans: in the UK, the loan can be secured against your vehicle, or an unsecured personal loan.
So how do you go about finding the best loans?
This will depend on the amount you want to borrow and for how long and it is a good idea to shop around.
How do I know which loan is the best for me?
Begin with the repayments and how much you can afford to pay each month; the shorter the repayment term, the less you will pay out but your monthly repayments will be larger.
What are the types of cheap loan available?
You can obtain cheap car-loans, personal and or unsecured-loans and secured loans.
Can I get a cheap loan online?
Yes, and many loan companies offer their services exclusively online; with lowered overheads, this enables them to provide a cheaper service.
Therefore, a bank loan is not always the cheapest way to obtain a UK loan. There are several online specialist companies and less conventional lenders.
What about if I have a problem on my credit rating?
Your credit rating will have an impact on your criteria to obtain the best unsecured loan rates and may affect eligibility for getting the cheapest personal loan. The best deals go to those with the most unblemished credit ratings so you may pay more if your rate is less than best.
Always compare loans; look at low APR personal loans between £1-35,000 in order to find the most suitable product for you. Use the comparison table to find a loan specifically tailored to your requirements.
At FreePriceCompare, we can help you to find the cheapest loan, best suited to your needs and with the lowest interest rate; we can explain the difference in the products before you go ahead.
What are the best loans?
As you can compare the cost of the loan upfront, loans compete almost exclusively on price alone, so the best loans are usually just the cheapest loans with the best loan rates.
However, other things come into consideration to determine the best loans, such as: how flexible a lender is, if you can enjoy any repayment holidays, customer service, how long the term is and how long your application will take.
How to find the best loan rates for cheap loans
Use the FreePriceCompare comparison service to assist you in finding the best loan rates available. You only have to answer two simple questions:
Over what period of time would you like to repay the loan?
How much would you like to borrow?
From the results you will want to know which are the lowest interest rate loans, the ones with the lowest annual percentage rate (APR) for the amount borrowed and the repayment period.
The APR will include any set up fees or charges, together with the interest cost on the loan.
Which cheap loans are most suitable for me?
Taking out a loan, and finding the best APR and right deal, is a responsibility which requires commitment. Here are a few tips to help you get it right:
Can you afford to pay the monthly repayments?
You need to give thought to your present and projected future circumstances and be realistic; ask yourself if any possible changes could impact your ability to meet the repayment terms.
What terms does the lender impose for early repayment of the loan?
Look for any penalty charges or early repayment fees attached to the policy.
Does the loan carry an arrangement fee?
Check this out so you are not asked to pay for something for which you had no prior knowledge.
If you need to defer payment or take a payment break, will this be allowed?
Always do a comparison to see what your options are in sourcing a cheaper loan with another lender.