Everyone wants to find the best personal loans at the lowest price possible, but cheap personal loans are not a product where “one size fits all” – the cheapest loans are built around a set of criteria that will be different for everyone.
We explain how to find the cheapest loan for you with the lowest interest rate and explain what you need to know before choosing one.
How can uSwitch help me find the cheapest personal loans?
Our personal loans comparison service can help you find the best personal loans available to you. To find a low cost loan, we will need to know:
- how much you want to borrow
- how long you need to repay the loan
From this information, our comparison service will find the cheapest personal loans for you. When you are looking at your results you’ll want to find the low interest loans, these are the ones with the lowest annual percentage rate (APR) for the amount and repayment period you want. The APR takes into account the cost of interest on the loan and any set up fees or charges.
Which cheap personal loan is the right one for me?
A loan is a big commitment, so when you are looking for the cheapest personal loan, as well as the APR, there are a number of other things to think about:
- Can you afford the monthly repayments?
- Are your circumstances likely to change in the future in a way that could affect your repayments?
- Will the lender allow you to pay back your loan early if you want to?
- Is there an arrangement fee?
- Can you take a payment break or defer your loan payments if you need to?
Will my credit rating stop me getting the cheapest personal loan
If you have had problems in the past, you may not be eligible for the cheapest personal loan as you will not meet the loan’s requirements. Often the cheapest loans are given to people with the best credit ratings – as a result the rate you’re offered may be higher than the advertised rate.
Sometimes the lender will try and offer an alternative loan with a higher interest rate. The rate you’re offered will also vary depending on how much you borrow and how long you want to repay the loan over. Make sure you do another comparison to see if you can find your cheapest personal loan with another lender.