Loans Choice
www.loans-choice.org.uk
A payday loan gives you an instant source of ready cash.
Secured personal loans and homeowner loans are basically the same thing.
Some lenders consider council tenants for a tenant loan.
Low cost unsecured loans are available online.
Improve your job prospects with a career development loan.
Car loans can be funded by Hire Purchase, Personal Contract Purchase etc.
Prepaid debit cards can be useful.
Debt consolidation loans are secured on your home.
Equity released from your home can be used for any purpose.
An IVA is an alternative to bankruptcy.
A remortgage can be used to finance home improvements.
AER APR is used for loans, AER for savings and EAR for overdrafts.
You can get FREE credit checks online.
Unsecured Personal Loans
Unsecured personal loans are available from many sources such as banks, building societies, finance houses, and even some supermarkets. Online deals will often offer the best rates of interest. Generally these loans can be used for any purpose you like such as buying a car, home improvements, holidays, debt consolidation loans etc., but some lenders loans may have exclusions. If you are seeking a bad credit unsecured loan please also read our Bad Credit Loans page.
Personal unsecured loans are generally available from £500 up to £25,000 but the lowest amount is generally in the region of £1,000 to £3,000. Repayments are made monthly but some lenders allow you to take a "payment holiday" where you can opt to make no payments for the first two months or so after taking out the loan. You should note however that interest is still charged and added to the account during this period.
The time you can take to pay off the loan depends on how much you borrow. Typically, loans in the region of £3,000 to £10,000 can be repaid over a period of 2 to 5 years and those between £15,000 to £25,000 between 5 to 10 years.
Interest rates can be fixed for the life of the loan or can be varied by the lender depending on the rise or fall of the bank base rate. Obviously a fixed rate has advantages because you know that payment will never rise, but if you think interest rates are high at the time you want to take out the loan, and are expected to fall in the near future, it might be better to wait, if possible, and see what happens.
The best way to choose a loan is to compare the APR (Annual Percentage Rate), selecting the one with the lowest rate first. Then look at the small print to look for items such as special set-up fees, redemption charges (a fee charged for early settlement of the loan), or any other charges that may apply to you. By hiding these charges in the small print it is easy for a lender to make a more expensive loan look cheap.
Hints
- Personal loans are regulated by the Consumer Credit Acts. When you sign an agreement you will be bound by it.
- The Consumer Credit Acts cover unsecured loans up to £25,000. This is the maximum figure that can be lent without security.
- For extra protection you can take out Payment Protection Insurance to cover sickness or unemployment. These policies provide good security but can add considerably to the monthly payments.
- You can sometimes get a better deal (lower APR) by applying for the loan online.