Cheap Personal Loans

How to get the very best deals for personal loans

Cheap personal loans are widely available, but if you want to get the best deals then it's important to take a few things into account. In particular, loans for small amounts (under £3,000) tend to have fairly high interest rates, so upping your borrowing by a few hundred pounds could save you a similar sum in interest.

To take advantage of cheap personal loans it helps if you're borrowing a reasonable amount: anything over £3,000 tends to attract the lowest APRs, and a few percent difference in the APR could mean you'll pay considerably more interest. Rather than borrowing £2,900 for example, borrowing £3,000 could mean a dramatically lower APR.
Cheap personal loans tend to be available only to "safe" customers, which generally means people who've been in full-time employment for some time and who don't have a dodgy credit rating. If you don't satisfy both criteria you might find that you need to deal with a specialist in higher-risk borrowers, but even then it pays to shop around: some firms offer decent rates to the financially challenged while others are clearly having a laugh.
No matter what you're borrowing or what shape your credit history is in, shopping around is essential: a difference of 3% APR between lenders doesn't sound like much, but on bigger loans it soon adds up. The difference between 6.9% and 9.9% on a five-year loan of £7,500 is a whopping £742 in interest.

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