What is the cheapest way to borrow money?
The cheapest way to borrow money will all depend on your personal circumstances. Although not suitable for everyone, below are some of the cheapest options available:
- Credit cards: There are a number of 0% interest deals available on credit cards. These are usually offered as an incentive to transfer for your balance from another card or on purchases for an introductory period.
- Bank loans: If you have a good credit history then a personal loan from the bank could be the cheapest loan option for you.
- Secured loans: These loans are secured against high value assets such as your home. Secured loans can be a cheaper option but remember that your property will be at risk if you don’t keep up with the repayments so think about things carefully before you proceed.
- Family and friends: You may be able to borrow from those closest to you and often there will be little to no interest involved.
Do I need a good credit rating to get a low cost loan?
The cheapest unsecured personal loans are those provided by the highstreet banks and supermarkets. These loans are typically reserved for those who have a spotless credit history with no debt or black marks on their credit report. If your credit history isn’t fantastic and you’re looking to apply for a loan you still have options, some of which are cheaper than others. It therefore pays to complete a Choose Wisely loan search and compare your options
What is a cheap loan for bad credit?
In the eyes of a lender, the worse your credit history, the greater the risk in lending to you. To combat this increased risk, lenders will likely charge more in interest. If you do have bad credit but can reduce the perceived level of the risk in lending to you, then the likelihood is you’ll be able to access cheaper rates. One way of doing this is by considering a guarantor loan and asking a guarantor to support your application.
What is a low interest loan?
Whenever you take out a loan the lender will charge you interest. This is how they cover their operating costs and ultimately make money. Interest rates are advertised as percentages based on the amount that has been lent. The amount of interest you will be charged by lenders is often related to the level of risk involved in lending to you. The lowest interest loans will typically only be offered to those with a proven track record of successfully repaying credit.
What are the cheapest options to borrow more than £5000?
The cheapest options will all depend on your credit history as well as personal factors such as your income and expenditure. By using the Choose Wisely loan search you will be presented with a panel of lenders to compare who have already accepted your application in principle. This won’t impact your credit file.
What’s the quickest way to find a cheap loan online?
There are a lot of options available online for cheap and low interest loans. The best place to start is to use an online comparison site such as Choose Wisely. By completing our quick online form we can match you with a panel of lenders who have accepted your application in principle. This has no impact on your credit file. If you do decide to visit a lender and complete your application directly with them, you will be credit checked. If approved, depending on the lender and who you bank with, money could be paid out the same day.
FAQs around cheap loans
The best way to find a cheap loan option is to use a comparison site or loan search tool like the one here at Choose Wisely.
If you have a poor credit history it is unlikely that you will be able to get a cheap loan from your bank. However, by visiting your local branch and discussing the idea with a member of their team you may be able to get an indication before you apply and are credit checked.
The best place to start when looking for your cheapest loan option is to use a comparison site like Choose Wisely. The Choose Wisely loan search tool can help you compare, personalised, suitable options as well as giving you access to a huge range of customer reviews and product information to help you make a decision.