A simples guide

Best rate loans comparison

Personal loans can be used for a multitude of things. Whatever your reason for borrowing, you should look for a product that suits your needs. Suitability depends on many factors.

No single product will be perfect for everybody. Therefore individual circumstances will always play a part. Here are a few tips for finding the best rate loan for you.



What are the best rate loans?

You borrow money for your own reasons. Your financial situation is completely unique. Only you can understand what it is that you need from a lender or product. As such, there isn’t a one size fits all solution. There is no single product that is perfect for everybody. By using our comparison service, you can find the best loan rate for you.

loan document
coins and piggy bank

Considerations for finding best rate loans

Finding the right loan can be like navigating a minefield. There are hundreds, maybe thousands, of providers out there. The number of loans on offer is greater still. Before making a commitment, you should consider the following:

-Is borrowing the best option in the first place?

- Can you afford the repayments?

- If your circumstances change, will you still be able to adhere to the repayment schedule?

- Is early repayment possible?

- Are there any hidden costs or fees?

- Is it possible to take a payment break, or defer repayment, should the need arise?

These questions should determine whether you borrow. The answers can help determine which lender is right for you.

Should you choose a loan based on its APR?

APR, or Annual Percentage Rate of charge, is an important factor. It is a calculation of interest and any automatic fees included. The actual APR will differ between lenders, even between products. However, all lenders must display their APR to you before you can sign a contract.

APR is a useful tool when comparing financial products but it is vital to look at every aspect of the loan before committing. Read and understand the terms before signing. Remember that it is important to think about the future. Failure to do so can have serious implications, should the worst happen.

What are the alternatives?

When weighing up your borrowing options, loans shouldn’t necessarily be your first port of call. Mainstream personal loans can range from a thousand to tens of thousands of pounds and they also have the advantage of having a fixed, monthly repayment. But if you are seeking a relatively small amount, you do have another option: credit cards could work out much cheaper than even the best loan rates.

Many credit card providers have introductory deals. Cards with 0% interest on purchases or balance transfers are a popular choice, and these offers can run for up to 40 months on the balance transfers. If the amount you need is within a credit card’s limit and you are confident you can pay it off before the end of the 0% you could save a lot of money in interest. Just make sure you remember when the introductory rate expires and pay of the balance before that date.

If you’re borrowing for a purchase that doesn’t accept credit cards then all is not lost. There is a specific type of credit card that could still work to your advantage. Money transfer cards allow you send your balance as cash into your bank account. Effectively, you have taken out a loan. You’ve just received a better rate than even the best rate bank loans.

How to choose between a loan and credit cards

You need to carefully consider your reason for borrowing. Should you require a loan for a small amount for a relatively short period then a credit card may be your best option. For larger amounts, you may need to look for the best low rate loans. Whichever option best suits you, make use of our powerful comparison service to find the best deals.

Compare loans

Compare loans and start saving now

get a quote