WARNING: LATE REPAYMENT CAN CAUSE YOU SERIOUS MONEY PROBLEMS. RATES FROM 45.3% APR TO 1575% APR FOR HELP, GO TO MONEYADVICESERVICE.ORG.UK

Online loans £50 To £2000

The Best Loans In Then Market

How much?

Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.

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Quick and Easy Process to the money you need. The most reliable lenders from across all the UK

Loan amount
1,500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Excellent
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Loan amount
500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Gold Trusted Service - feefo
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Loan amount
500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Gold Trusted Service - feefo
Apply Now

Show More ▼

Loan amount
500 - 25,000
Loan term
1 - 5 Years
CUSTOMERSCORES
Gold Trusted Service - feefo
Apply Now

Show More ▼

Representative Example:
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

What to consider so you can obtain the best personal loan rates in the UK

Obviously, you want to avail for the best personal loan rates if you need to take out a personal loan from a bank or online lender. So you can succeed in such an undertaking however, having the right set of knowledge and preparation is crucial. You also need to compare loans and the existing offers available in the market so you can find the one that is the most affordable.

Below are some of the important factors that come into play when you want to secure the lowest personal loan rates in the UK:

1.) Solid Credit Rating

So you can qualify for the best loan rates, having a solid credit rating is a must. This is because the best persona loans with the most affordable rates and favourable rates are generally reserved to borrowers who have good to excellent credit ratings.

A lot of this has to do with lender’s attitude towards credit history – they are more confident that the money they lend will be paid back according to the agree terms and conditions if the borrower has a solid credit score and positive credit history. If your credit rating is low, it signals a problematic history in paying off debts and lenders will normally mitigate the risk involved in your application by attaching a higher rate in your credit credit agreement.

For this reason, taking the necessary steps to improve your credit rating will come a long way in helping you land the best unsecured loans that provide the least-expensive deals.

why get the best personal loan rates

2.) Including a co-signer

One way to offset an unspectacular credit rating so you can access the best personal loan rates in the market is by including a co-signer in your credit agreement. Having another person in your loan deal will improve the chances that your loan will be paid back giving lenders the confidence they need to grant you a low interest rate loan. For this to work, you will need to find someone close to you like a family member or long time friend who has a stellar credit rating and strong income level. And if you want even better results, find someone who is a homeowner.

3.) Steady source of income

Having a solid credit rating is just one factor in getting qualified for the lowest personal loan rates in the UK – you also need to have a steady source of income that is enough to afford the loans and its repayments to get approved. This means that being employed and enjoying regular salary is a big plus in your application although you can still get approved even if you are unemployed. The process however, is a bit harder as you will need to provide proof of income through tax returns, banks statements, and the like if you are not fully employed.

Also, the bigger your income, the lower the rate of your loan will be. Having a low debt to income ratio is also important (lenders normally accept debt to income ratios that do not exceed 40%).

4.) The shorter the term the better

If you apply for personal loans, you are normally given the freedom on how long you will have to pay back the money that you owe which is known as the term of the loan. There are various terms that you can choose on starting from year to as long as 12 years. As a general rule of thumb, the shorter the term, the lower the rate will be. This means that if you want to access the best personal loan rates, you will need to focus on the shortest term that you can comfortably follow.

5.) The lender

A low interest rate personal loan will vary from one lending institution to the next and this is something that you need to consider heavily. Credit unions for instance, generally have cheaper rates than banks. And in most cases, online lenders can offer the lowest personal loan rates available as they don’t operate the same overhead costs that banks and credit unions follow (online lenders will only maintain a website and a few employees as opposed to an army of employees, physical offices, and facilities that banks and credit unions have to keep up with) which allows them to charge lower prices for their credit services.

So if you want to secure the best personal loan rates, then you might want to work with a reputable online lender.Online lenders also follow a different method of evaluating your credit worthiness as they won’t focus purely on your credit score alone but will look at other factors. This gives you a better chance of getting approved for a low interest rate personal loan.

Other Important things to consider to obtain the best personal loan rates

Aside from the five important factors in obtaining the best personal loan rates mentioned above, you also need to decide on these two essential questions:

  • Fixed vs Variable Rates. You can choose either a fix or variable interest rate when you apply for an personal loan. Fixed interest rates will remain the same throughout the duration of the loan term and variable interest rates can change depending on economic factors. You can get a lower interest rate if you opt with a variable rate at the beginning but there is chance that it could become bigger at some point on your loan term.
  • Secured vs. Unsecured Personal Payday Loans. When it comes to securing the best personal loans, there are normally two ways in which you can go about it: applying for a secured personal loan or an unsecured one. So which option is the best one for you? It will depend entirely on your present financial needs and circumstances and if there are any high value assets at your disposal.

Now if you want to obtain the best personal loan rates in the UK, then you might want to pursue a secured agreement wherein one of your assets like your car or home will serve as collateral to the money that you borrow. However, bear in mind that you can lose your asset if you are unable to pay back your loan or default from your repayments. So if you are considering a secured loan agreement to unlock a potentially low interest personal loan, then make sure that you are 100% confident and financially capable to pay back the money that you borrowed according the agreed terms and conditions.

why get the best personal loan rates

5 most recent personal loan reviews

Review of Bridge Finance

This is my second loan with Bridge Finance and both times they have been very helpful and informative. Explained everything to me and made sure I understood the process and what would happen. I would recommend Bridge to anyone.

Review posted by Charlotte Ashton

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Wesleyan Bank

Wesleyan loans are a financial institute which is excellent for applying for loans. It looks at all your circumstances and provide loans to people who are refused elsewhere. They are fast and honest. I would recommend Wesleyan loans to anybody who needs a loan.

Review posted by Zafrullah Khan, Slough

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Logbook Loans

Really happy with my experience with Logbook. Most of the process was done online from the convenience of my own home. Really friendly customer services too! Highly recommended.

Review posted by Bethany Holcombe, Cirencester

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money
All reviews are sourced from Trustpilot.com for authenticity.