When looking for an unsecured personal loan, consider the APR of the loan, whether any penalties are charged for early repayment, and make sure you can afford the repayments.
APR - annual percentage rate is the total amount the loan will cost you, in terms of interest and charges, on top of the amount borrowed. The APR advertised on all unsecured personal loans is representative – which means it’s just an example. Not everyone will be offered the APR advertised, although it must be available to at least 51% of successful applicants. So, you could end up with a higher APR than you’ve applied for.
Early repayment penalties are charged by some – but not all – lenders. If you think you’ll want to pay off your loan early, it might be sensible to look for a lender that doesn’t charge these penalties.
Making every payment is really important. If you fall behind in making repayments, or stop them altogether, the provider could take legal action against you. Plus, it could damage your credit rating. This is why it’s so important to compare unsecured personal loans to find one most suited to you.