Loans

Loans

There is a huge variety of different loans available and an even wider range of lenders. With so many things to consider when comparing loans, it's easy to become confused about your options. Choose Wisely has reviews, articles and guides on all the different types of loans, so you can find the right one. Your credit rating will affect the types of loan you should apply for, with traditional bank loans requiring a spotless credit file. Other options are available for those with a lower credit score and our guide to borrowing with bad credit will help you understand how to apply for these.

Bank loans, good credit loans and supermarket loans

If you have a good credit history, it's worth looking at bank loans and supermarket loans. Banks and supermarkets offer some of the most competitive rates on the market today but they tend to only be available to people in full time employment. If you look at the full range of good credit loans, you'll see that they're not all from banks and supermarkets.

Unsecured loans

The vast majority of the loans you'll find on Choose Wisely are unsecured personal loans, meaning you won't need to put up security such as a house or other major asset. However, even unsecured loans come with serious consequences if you fail to keep up with your repayments.

Holiday, car and home improvement loans

If you don't have savings available and you want to take advantage of a time-limited deal or opportunity, you may be interested in these specialised loans. Home improvement loans can help you repair or add value to your house - particularly helpful if you're about to sell. Holiday loans might be an alternative to paying on a credit card in some circumstances. A car loan can be a good alternative to forecourt deals, but make sure you shop around to get a great deal. These specialist loans are only worthwhile if there isn't a cheaper option, such as a credit card.

Debt consolidation loans

When you have debts in a few different places, it can be difficult to keep track and make sure you're getting the best rate possible. Debt consolidation loans allow you to bring all your debt together in one place, with a single, cheaper loan. They can also help you by reducing monthly repayments and changing repayment dates. The idea of a debt consolidation loan might be very appealing, but you will need to very carefully work out if the new loan works out cheaper than your existing deals. There is more information on the debt consolidation loan section of the site.

Quick loans, small loans and short term loans

These loans are meant to offer a quick fix for short term problems, such as when you have an unexpected bill. They aren't a good solution for long term borrowing or where you have cheaper alternatives. Payday lenders are heavily regulated by the FCA, which should give you some peace of mind that you won't be overcharged for a short term loan or the similar small loans and quick loans. You can find out more about these products in the short term loans section of this site.

Loans for the unemployed and people on benefits

Even if you are unemployed or in receipt of benefits, there are still options available for borrowing. These options come with the usual warning that, if you can't afford to make repayments, taking on more debt is not a solution. Unemployed loans and loans for people on benefits have a higher APR than other options, but comparing your options on Choose Wisely will help you get the best possible deal.

Bad credit, CCJ and guarantor loans

If you have a poor credit rating, CCJs or have defaulted while borrowing, your options will be more limited. You can expect to pay more to borrow with CCJ loans, and there are also specialised [bad credit loans](/loans/bad-credit-loans/compare/ available). If you've defaulted before, then be cautious about taking on further debt in the form of a default loan unless you are confident of being able to repay. You may find a better deal if a family member or friend is willing to support your application for a guarantor loan. Your best option is to read through our guide to borrowing with bad credit before applying.