Purple loans promises to cater for everyone including the self-employed and people with CCJs or bad credit ratings. It's a good idea to look at the small print on the Purple loans site, though: APRs aren't as attractive as you might expect from the headline figures.
About Purple Loans
Purple Loans promises to lend £3,000 to £100,000 with an APR of just 7.8%, but the small print tells a different story: that APR is variable and the site's own example suggests that a homeowner borrowing £8,000 over 10 years will be offered an APR of 10.7% variable. That's nearly five grand in interest – and if interest rates go up, then so will the payments.
One of the key selling points of Purple Loans is that it's willing to lend money to bad risks – people with CCJs or bad credit ratings, self-employed people and so on. However, you might pay for the privilege: as the small print notes, "an administration charge of between 0-10% of the loan amount may be charged on some problem cases."
That doesn't necessarily mean that Purple Loans will charge you a massive admin fee and huge APR, but it does suggest that the claimed 7.8% rate isn't going to be offered to many customers. And of course, 7.8% variable is still higher than the 6.9% fixed that you can get from other lenders.
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