There are several things to look for when you consider a loan company review:-

Interest Rate

Cheap Personal Loan Reviews

This is often shown as the APR (or annual percentage rate), and although this is the way the loan company will be calculating the interest that will be repaid on your loan, it can be confusing and not straightforward for the average person.

For this reason make sure when you look at a loan, you find out from the loan company a) the amount of interest that will be added each month in real terms (i.e. pounds that are added), and b) the total amount of interest that you will have to pay over the whole term of the loan. These figures will give you a much better idea of the actual amount you will be paying in order to borrow the sum of money for a length of time.

Early Repayment

When considering loan company reviews, make sure you are fully aware of any early repayment terms of the loan. Early repayment may occur should you find yourself with more spare cash at any point and decide to use it to pay off the loan early, before the term of the loan is fully completed. Some loan companies might charge you a penalty for early repayment so be sure you are aware. Other companies may choose to allow you to pay off the loan at any point without any penalty or charge.

Also be sure you ask what rebate will be due as loan companies tend to calculate interest taking into account that the loan will run for its full term which means you may have already overpaid interest if you decide to pay off your loan early.

Loan Company Reviews

Another good way to get a good review of many loan companies available, is to use a loan comparison site. These sites list many different loans available and may provide tools to allow you to compare loans, interest rates, etc.

Whatever you decide on, remember that checking out a range of loan company reviews is a good idea before making a final decision on borrowing.

As always, you should also seek professional advice before making any financial commitment.

Maybe you had a problem with a previous loan, a payment didn’t get through and you ended up in problems. Or maybe you have been the victim of identity theft with someone unknown to your racking up debt and leaving you with a bad credit reference. Whatever the reason, many people have fallen foul of the bad credit score trap. Fortunately, there are lenders who will provide finance despite the bad credit reference.

Cheap Personal Loans for Bad Credit UK

Unfortunately, many of these lenders will probably charge more interest than if you had a good credit score. This is just something you may have to live with. If you need a cheap personal loan for bad credit in the UK then its likely you will only be able to obtain a secured personal loan. This type of loan requires that you provide security (usually property) in order to assure the lender that the loan will be repaid. If you are unable to repay the loan then the lender will have the right to reclaim the loan against the security you have provided. Obviously if this is your house, that has quite serious implications.

However if you are genuine about finding a bad credit personal loan then this shouldn’t be a problem. If you intend to make your payments on time and see it through until the term of the loan then the security aspect may not be a problem to you.

Either way, its important to consult several lenders to see what options are available to you. Depending on you actual credit score, the interest rates may vary considerably between one lender and another. Making sure you find the cheapest personal loan possible is all about shopping around to find the best interest rate.

When talking about loans, the interest rate is usually termed the “Annual Percentage Rate” or APR. At its simplest, the APR is basically the interest rate payable over a yearly period divided by the number of payments due in that year.

Currently, the lowest APR rates to be found in the UK are between 7 and 8% but this will vary depending on the current bank interest rate set by the Bank of England. If the Bank of England increase the base rate, then most lenders will also raise their lending rates.

Cheap Personal Loan Reviews

From this is easy to identify a loan which is say 10% APR will cost more over the duration of a loan which is 8% APR providing the loan is paid back over the same term. The reason for this is that naturally more interest will be accrued if the loan is taken over a longer period of time.

At its simplest, calculating your monthly payments should be a matter of dividing the APR by twelve to get your monthly interest fee then applying this to the loan:-

• Loan Amount: £1000
• Loan Term: 12 months
• APR: 10%
• Monthly interest rate: (10 / 12) = 0.83%
• Monthly interest: £8.30
• Monthly payments: (£1000 / 12) + 8.30 = £91.63
• Total repaid over 12 months: £1099.56

Unfortunately, the above example can only be used as an idea of what you might expect. The real amount is likely to be a little higher due to the effects of ‘compound’ interest. This is a term used to describe the interest that is charged to interest that’s all ready been added to the loan. However, the above example can work to give you a basic idea. Most lenders do have loan calculators on their websites which help you to get more exact figures.

Overall, finding a cheap personal loan will be about looking for the lowest interest (APR) payable. There are several ways to check this:-

• Browse lenders websites
  Most lenders have a website with easy to use loan calculators and often clear advertised APR rates
• Look at comparison websites
  There are a number of comparison sites which help to put lenders rates all on one easy to view page. This can help to more easily compare the loans available.
• Visit high street banks and building societies
  You can of course visit high street lenders or call them to enquire about their loan rates

Whichever option you find best, finding the cheapest personal loan is essential to avoid paying more interest than is necessary on any borrowing you wish to make.

When looking for a cheap personal loan, most people are looking to save as much money as possible on the interest of the loan. The total interest you will repay depends on two factors, the APR or Annual Percentage Rate, and also the length of time you wish to borrow, called the term of the loan.

Cheap Personal Loans UK

They offer a good range of repayment options from 1 to 5 years. This makes the suitable for a short to medium personal loan option and with it being unsecured it makes for a quick and easy personal loan choice.

Here is an example personal loan from Alliance & Leceister as provided from their own online loan calculator:

Example Loan of £7,500 repaid over 5 years (without payment protection insurance)

• Amount Borrowed: £7,500
• Term: 5 years (60 months)
• Monthly repayment: £154.08 per month
• Total repaid at 36 months: £9,244.80
• Interest paid over life of the loan: £1,744.80

Example Loan of £10,000 repaid over 3 years (without payment protection insurance)

• Amount Borrowed: £10,000
• Term: 3 years (36 months)
• Monthly repayment: £315.94 per month
• Total repaid at 36 months: £11,373.84
• Interest paid over life of the loan: £1,373.84

The loans quoted above do not include payment protection insurance. For peace of mind, you can choose a payment protection cover which covers the monthly payments of the loan should you be unable to work for reasons of unemployment, sickness, etc.

Note: The example and rates stated were as quoted on the providers website on the date of publishing. Rates are subject to continual review and change and so you should verify current interest rates and full terms and conditions with any lender before considering committing to any loan. We recommend you seek professional advice before entering into any financial obligation.

Secured or Unsecured Loans - Whats the difference?

When looking for a cheap personal loan, you may come across terms or financial jargon which can be confusing. One of these terms is secured or unsecured personal loans.

Before we look more into why a bank or lender might require security, lets look at what it means to have a secured or unsecured loan.

Secured Personal Loan

A secured loan is one which the bank or lender requires a security (usually property) against which they will lend you money. This basically ensures you repay the loan or else the bank or lender may have the right to get back what you owe against the value of the property you signed over as security.

Unsecured Personal Loan

An unsecured loan is one where the bank or lender do not require any form of security against which to lend you money.

So now that we understand the difference which is the best option and what might be the requirements for secured or unsecured loans.

Unsecured loans are typically for lower value loans such as those up to £10,000 or £15,000. Of course they represent increased risk to the bank or lender since if you do not pay, they have no guaranteed way to regain the lost capital. For this reason they will often make careful credit checks and may attach a higher interest rate to the loan because of the increased risk. Of course, the risk to the bank is your advantage since if you get stuck with the repayment of the loan you won’t have put any property at risk (although other factors such as your credit rating will likely suffer and the lender may pursue you through legal channels to collect the lost capital. This may make it difficult for you to get credit again in the future).

Secured loans are usually suitable for larger projects where you need to borrow extra cash for example £25,000 or £50,000. Of course it depends on the value of the property that you might be putting up for security as to exactly how much you could borrow. These types of loans are sometimes suitable for those with a poor credit record or those with CCJ’s since the putting up of security is peace of mind for the lender that they can reclaim their money if you default.

When considering whether to get a secured or unsecured loan, the amount required is going to be the main driving factor followed by your credit history. If a large loan is required you will probably have no option but to go the secured route. Smaller loans are usually better unsecured, however as detailed above your credit history may dictate whether you will qualify for an unsecured loan.

Whatever your reason, you will want to find the best, cheap personal loan to suit your needs. So where do you go to find the best advice? How can you be sure that you are going to be applying for the right one?

Cheap Personal Loan Reviews

One of the best places to start is by visiting a loan comparison website. Using a loan comparison site helps to give some assurance that the website has reviewed the different loans available and gives you a helpful way to find the best one for you. They have already spent time by dealing with the personal loan reviews thereby saving you alot of time and leg work.

A good loan comparison site should provide you with helpful tooks to find the cheapest and best personal loan to suit your needs. In its simplest form it will layout a range of loan providers in a table format which helps to compare at a glance the interest rates and examples to help you see the difference in cost between one loan company and another. This will help you to select the cheapest personal loan for your needs.

It’s clear that using a loan comparison site is one great way to compare at a glance and choose the right cheap personal loan for you. In the coming weeks we will be reviewing and looking at other options as well as detailing how to cut through the jargon so you understand what you are getting into when you apply for a personal loan.

There are several different ways to choose a personal loan but taking up the first offer that drops through your door or reacting to the first ad you see on TV is not advisable. The best action you can take is to do some homework and check the options available to ensure you end up with the cheapest personal loan available.

Cheap Personal Loans UK

So finding a cheap personal loan may not be as straightforward as it sounds. Over the course of the coming weeks and months we will review different cheap personal loan options to enable you to make a better informed decision. Deciding to take out a personal loan is quite a commitment and depending on whether you can get a secured or unsecured loan will also determine how much you have put on the line.

We hope you find this site beneficial in your search for cheap personal loans and, whether it be to go on a nice holiday, to consolidate existing debts, or to have a new kitchen fitted, that you will ultimately find the right loan for you.