Are you looking for the cheapest unsecured loans? Consumers can apply for a cheap loan from our best loan lenders.
Consumers that are searching for a cheap unsecured loan can take a look at our list of lenders. Choose from fixed rate and variable rate loans allowing consumers to borrow up to £25,000 over a yearly period of your choice. Use our unsecured loan calculator to work out the TAR of the loan, which is the total amount repayable. You can do this by entering the lenders interest rate into the form, enter the amount of money you want to borrow, and then the period of time you want to borrow the money over. This will allow consumers to find the cheapest unsecured loan.
What’s an unsecured loan?
Most unsecured loans are issued by a bank or building society and you can apply for a unsecured personal loan either on the high street or online.
How much money can I borrow?
Consumers can borrow from between £1000 and £25,000. The payback or repayment period is between one and seven years on average. If you want a smaller loan under £1,000 then you should consider payday loans.
What interest rates can I expect?
Interest rates or the APR of the unsecured loan will depend on your personal circumstances. The advertised APR shown for a particular fixed rate loan may not necessarily be the rate that you are offered. Interest rates are not as low as secured loans because you do not offer any collateral if you defer on the loan.
Are fixed rate unsecured loans the best?
Fixed rate unsecured loans are the best to apply for and the lowest rates are always changing, so shop around to find the cheapest rate. The benefit with a fixed rate loan is that it can make it easier for consumers to manage their repayments and keep within budget. If you want to pay off your loan agreement early, be careful as some loan lenders will penalise you and charge you an early payment fee.
Will my credit score affect the interest rate I get?
Your credit rating or credit score will have a huge bearing on whether you will be successful when applying for an unsecured loan. Your credit rating will show the lender your likelihood of paying back the loan. If you have a poor credit score then you might find that you may have to pay a higher rate of interest than the advertised APR. The interest rate may also change due to the amount of money you want to borrow. Smaller loans will warrant a lower interest rate.
Is an unsecured loan the right for loan for you?
An unsecured loan is a great way to raise finance if you want to go on holiday or you want a new car. One of the main things to consider with any loan is to make sure that you can afford the monthly repayments and you keep within your budget. If you cannot afford the monthly repayments don’t borrow the money because you don’t want to get into debt problems. Unsecured loans will not put your home at risk like secured loans if you cannot payback the loan, but you don’t want any legal issues or end up with a CCJ.
What other unsecured loans are there?
If you are a consumer who wants to borrow a smaller amount of money then payday loans are a good option. You can borrow from £80 to £1,000 and you repay the money at your next payday. Interest rates are much higher with loans like this but are a source of finance to consider.