The best place to find cheap loans in the UK today.
With so many lenders and loan plans available in the UK it is easy to qualiify for a loan even if you have bad credit or you are not a homeowner and you can find these loans cheap online today.
Cheap loans are usually measured by its typical APR, the lower the typical APR of your loan the cheaper the loan will be.
Some people however class a cheap loan as a loan that allows them to consolidate their debt into a lower monthly payment (even if their rate is slightly higher as their credit rating excludes them from being offered the lowest rate loans).
So what factors effect the rate of the cheapest loans?
- The size of the loan (£1000 - £250,000)
- The length of the borrowing period (between 12 months and 25 years)
- Your credit rating (good credit, fair credit and bad credit)
- Your residential status (are you applying for personal loans, unsecured loans, homeowner loans or secured loans).
To qualify for the very cheapest loan you will have to be classed as a very low risk by the lender and will be offered their best rate as a result.
This is not to say that you cannot get a cheap loan if you are a tenant or if you have a bad credit rating, but in general homeowner and secured loans are taken over a longer period are cheaper than personal loans for tenants.
Some lenders base their low rate loans around the size of the loan and borrowing above £7500 is often the bench mark for this with rates dropping if you borrow above than this amount.
The reason for you loan will not normally affect the rate of your loan although car loans do sometimes have slightly higher interest rates.
How do you decide if a loan is cheap enough for you?
The main factor here must be affordability - you should never borrow more than you can afford and you might consider if you will require payment protection to help cover your cheap loans repayments if your circumstances change during the duration of your loan.
Is the loan rate the most important thing to consider?
You should consider the rate of your loan offer but if you are not able to get the lowest rate loan that you have seen in the press this should not always put you off as the loan purpose can be an important factor in your decision.
For some people even a higher APR loan can save them money. For example if you are consolidating more expensive debts such as existing personal loans and credit cards a higher rate offer may still be the best loan option for you.
In a similar way you may be better off taking a loan with an extended term even if the rate is slightly higher as it may lower your monthly outgoings and make your life easier. A home improvement loan could even add value to the price of your home or improve your standard of living.
So while it is important to get the lowest rate you can, in the cases above even a loan with a higher APR may still be thought of as a cheap loan. It all depends on your circumstances and what you plan to use your loan - loans that may be classed by one person as cheap loans may seem expensive to somebody else.
A quality finance broker such as decisionloans.co.uk has access to the UK’s top lenders and hundreds of loan plans and can help find you the cheapest loan that you will be accepted for. This can save you time searching and applying to lenders who wont accept you as a customer. It can also protect your credit rating - apply today for your free loan search.