Will I qualify for a cheap loan?

Cheap loans are increasingly common in the UK, as more loan companies come onto the market creating more competition. If you're looking for a cheap personal or a secured loan your main priority is probably to save money, so here are uSwitch.com's tips on finding a cheap loan that's right for you.

Enter the term "cheap loan" into a search engine and there will be millions of results returned. You now have two choices:

• start looking at each loan provider's offer in turn (good luck)
• use the uSwitch.com's loans comparison service to search all the loan deals in one place

We provide an impartial and independent comparison of the UK's personal and secured loans, so you can compare cheap loans quickly and easily.

If a cheap loan is advertising a low Annual Percentage Rate (APR) of interest this can seem like a great deal, but beware that rates can be deceptive.

Cheap loans calculate their typical APR in conjunction with a system called risk based pricing. This means that they assess each individual's circumstances and credit history before deciding what rate to offer the individual. Although a lender has to offer the typical rate to 66% of people that apply, it is possible that you won't get this rate. If you are offered a different rate to that advertised, it is always a good idea to do a new comparison.

Beware of hidden catches with a cheap loan. These can include:

• An early repayment fee (also known as a redemption fee) if you pay back the loan before the end of the loan term. This can be as much as two months' interest, considerably adding to the cost of your cheap loan
• An arrangement fee for setting up your cheap loan
• Deferments and breaks – these can give you a break from paying the loan for a specified time. Any interest you would have paid in this time, is still payable and is added to your outstanding balance

Check the loan details to see if any of these conditions will be applied.

Our personal loans comparison service and secured loans comparison service search the market for cheap loans that match your criteria. All you need to do is answer a few simple questions about your loan: for instance, how much do you want to borrow? How much can you afford to pay back each month?

Our results will show a list of the cheap loans that are the best match for you. The small print will be set out clearly, so you can look for a loan with a low APR, no arrangement fee and no early repayment fee.