Best loans
If you’re looking for a good deal on a loan to help finance a property or other expensive purchase then you’ll need to shop around; in the world of personal finance, loyalty rarely pays and the rates offered at your current bank may not be the best out there. Here are some tips as to how to get the best loans out there:
- Check comparison sites. There are lots of financial websites out there which allow you to compare different loans, looking at the total cost over your chosen repayment schedule and how much the difference in APRs will truly cost. There are lots of sites out there to help cut through the clutter. Santander is currently offering average APRs of 8.9% on loans of up to £15,000.
- Read the money pages of the newspapers. These are generally good starting points for seeing at a glance what kind of rates you can expect to find. Check the tables and watch out for special supplements, which may make you aware of a new offer coming on to market.
- Don’t ask for more than you really need. The fastest way to get turned down for a loan is to ask for too much so do be careful in your calculations and consider how else you could get the money – can friends or family help out?
- Make sure it’s an unsecured loan! A secured debt may mean that your house is at risk of repossession if you don’t keep up payments. Beware of consolidating your debt as there are lots of unscrupulous companies who will charge much higher fees than you would be paying if juggling several different debts.
- Check the rate that you’re being offered is the same as that quoted in marketing materials as the rates quoted are almost always give the caveat of ‘average’ APR. That great deal may not seem so great if the loan interest rates that you are offered are significantly higher than advertised.
- Before applying for a loan make sure your credit file is in order. Do checks with the credit agencies to make sure it is accurate. It helps to have built up some kind of previous credit history so if you don’t have any, try getting a credit card, making sure to pay off the amount in full each month; this should rack up a positive credit score.
Follow these tip sand you’ll be accepted for that loan in no time at all!
