Figuring out which loan is the best from the vast array of deals open to you can be a bewildering experience.
However choosing the right loan could potentially save yourself thousands of pounds, choosing the wrong one could prove to be very costly.
Where possible always opt for an unsecured loan as this allows you to borrow without needing to put up your home as security for your debt.
Always try to borrow the minimum amount you need as the greater the sum you borrow the larger your total interest bill will be.
Keep the term of your loan as short as possible but make sure you can still comfortably afford the monthly repayments.
When comparing offers, look at the APR - the Annual Percentage Rate of charge. Generally, the lower the APR the better the deal for you.
Look out for lenders with tiered rates of interest. Some lenders apply tiered interest rates which means the interest payable is lower on larger loans. For example, a lender may charge, 13.9% APR on loans between £1,000 and £4,999, but if you borrow between £5,000 and £25,000 the APR could fall to 8.9%. This means, by borrowing £5,000 instead of £4,999 you could seriously reduce your interest bill.
It's essential to compare loans before making a decision. Rates vary dramatically from lender to lender so it really pays to shop around.
Use the compare loans facility above to compare a selection of deals currently available in the UK.