Cheap Unsecured Loans


Whether you're looking for a personal loan or a secured loan there will be one common denominator - you want a cheap loan, not an expensive one. However, it doesn't matter how cheap a loan is if your application is declined because you don't fit the lender's criteria.

Are Cheap Loans the Best?

The simple answer to that question is 'not always'. You have to be honest about your personal financial circumstances, and remember that just because a loan has a low APR or lower monthly payments it doesn't mean that it's the cheapest or best loan for you.

You will need to consider the following factors:

  1. Price-for-risk strategies employed by many lenders.
    Each lender will assess your personal financial circumstances and credit history to determine the APR available to you. Even if you are accepted, your loan might be at a different rate than advertised. According to Office of Fair Trading guidelines at least 66% of customers that take out a loan should benefit from the typical APR which is advertised.
  2. Early redemption charges.
    If you think that you might be able to repay the loan before the end of the term agreed then you should find out if your loan provider will add an early redemption charge for doing so. This can often be up to two months worth of interest, meaning that it could be better for you to have a loan at a higher APR so you can avoid paying this fee.
  3. Am I eligible for a cheap loan?
    There are a number of factors which will help determine if you are eligible for a cheap loan. Your credit rating will be crucial in determining whether you will be accepted, and also at what interest level. Although different lenders have a different score card for those clients, they will always access the 'stability' of a customer and predicting the likely default ratio's based on customer characteristics.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERM OF DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.



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RefusedALoan.co.uk is a trading name of Ask Finance Ltd, which is registered in England and Wales (company number 4229724), Jackson House, Sibson Rd, Sale, Manchester, M33 7RR. Ask Finance is licensed under the 1974 consumer credit act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.

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