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Compare cheap personal loan rates from our leading providers to help you borrow the money you need

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Compare loans

How to compare loans with Moneyrepublic

Comparing secured loans is crucial to find the best terms and rates. Here are the steps to take during the application process:

1.

Compare loans

Look at various options and consider factors such as the APR (Annual Percentage Rate), monthly repayments, and the total amount to be repaid. This will help you find the most cost-effective loan.

2.

Choose a deal

Select a deal and provider that offers the best combination of APR, term length, and monthly payments. Ensure that the loan is affordable based on your financial situation.

3.

Fill out the application form

Provide your name, address, and bank details, along with a summary of your monthly income and expenses. Double-check all information for accuracy to avoid any issues during processing.

What is a loan?

A loan is a financial agreement where you, the borrower, receive a specific sum of money from a loan provider. You repay this sum in monthly installments over an agreed period, known as the loan term, with added interest. This method of borrowing is useful when you need more money than other options might offer.

Loans can provide a significant financial boost, especially when used responsibly. Your ability to secure good interest rates depends on your credit rating, which reflects your financial history and reliability. Maintaining a good credit rating is crucial for lowering the overall cost of the loan.

What can I get a loan for?

Loans offer financial flexibility for various needs. Whether you face sudden demands or plan significant life events, understanding how to use a loan can help you manage your finances effectively.

  • loan image 1

    Unexpected expenses

    Life is unpredictable. A loan can be a lifeline when unexpected costs arise—such as emergency medical bills, urgent car repairs, or essential home repairs like a new boiler. In these situations, immediate financial access is crucial.

  • loan image 2

    Car loans

    If you're looking to purchase a vehicle, a car loan can make this large expense more manageable. Unlike dealership financing options, securing your own loan gives you the freedom to negotiate as a cash buyer, potentially securing a better deal.

  • loan image 3

    Home improvements

    Planning to upgrade your kitchen or add a new bedroom? Home improvement loans fund these projects, improving your living space and increasing your home's value.

  • loan image 4

    Weddings

    A wedding is a once-in-a-lifetime event that calls for a memorable celebration. A wedding loan covers the costs of venues, attire, catering, and other significant expenses, ensuring your special day is as magical as you envision.

  • loan image 5

    Debt consolidation

    Managing multiple debts is stressful and costly. Consolidating your existing debts into a single loan simplifies your payments and potentially reduces the amount of interest you pay, easing your financial burden.

  • loan image 6

    Holidays

    Everyone deserves a break. If you're dreaming of a getaway, a holiday loan makes your travel dreams a reality, allowing you to unwind without financial stress.

What is the best type of loan for me?

    Unsecured loan

    An unsecured loan, also known as a personal loan, lets you borrow money up to a set amount without needing to offer any collateral. This loan is ideal if you prefer not to risk your assets or don’t have collateral to pledge. It’s a straightforward, accessible financial solution for many borrowers.

    Secured loan

    A secured loan requires you to offer an asset, like your home or car, as collateral. This loan often allows you to access larger amounts of money. However, if you are unable to make repayments, you risk asset repossession. Carefully consider this when choosing your loan type.

    Guarantor loans

    A guarantor loan suits those with bad credit or no credit history. It's unsecured but requires a third party to guarantee your repayment. If you can't pay, your guarantor must cover the debt. This is a serious commitment for both you and your guarantor.

    Peer-to-peer loan

    Peer-to-peer loans connect you directly with individual lenders via online platforms, bypassing traditional banks. These loans are unsecured, making them accessible without collateral. This setup offers competitive interest rates and flexible terms, reflecting the personal nature of lending and borrowing between individuals.

    Bad credit loan

    A bad credit loan is designed for individuals with a poor credit score or no credit history. These loans have higher interest rates and set borrowing limits. You might need a guarantor to secure the loan. This loan is a viable option if traditional borrowing routes are unavailable to you.

    Debt consolidation loan

    A debt consolidation loan is smart if you're managing multiple debts with high interest rates. It combines all your debts into one loan with a single monthly repayment, potentially reducing the total interest you pay over time. Be aware of any fees for early repayment of your existing debts. Always calculate the total costs to ensure it benefits your financial situation.

Loan cost example

Considering a personal loan to consolidate debt or fund a home improvement project? Understanding how the loan amount, interest rate, and repayment period affect the total cost and your monthly repayments is crucial.

Borrow £10,000 at an interest rate of 7.5% with a repayment period of 5 years. Here's a breakdown of how these factors influence the overall cost of your loan:

Loan details
Loan Amount £10,000
Interest Rate 7.5% annually
Repayment Period 5 years (60 months)
Monthly Repayment £200.10
Total Amount Repayable £12,006
Total Interest Paid £2,006

With these figures, the monthly repayment is approximately £200.10. Over the duration of the loan, you will repay a total of approximately £12,006, which includes £2,006 in interest.

Use an eligibility checker before applying to get an idea of the interest rates you might qualify for, based on your credit score and financial history. A lower credit score may result in a higher interest rate, increasing the total cost of the loan.

Always review the total cost and ensure the monthly repayments are manageable within your budget. Borrowing responsibly helps maintain or even improve your credit score.

Loan eligibility requirements

needs
To be eligible for a loan, you must meet specific criteriaProvide the following information
You need to be at least 18 years oldPersonal details, including your name and date of birth
Steady income is crucial as it shows you can handle monthly repayments.Bank details
An active bank account is required for the loan transactions.Current address and your address history for the past three years
Lenders will assess if you can comfortably afford the loan repayments without compromising your financial health.Employment details
You need to be a UK resident and have a permanent address

All it takes to compare loans is a bit of information about you and your finances.

Compare loans

How do I decide which loan is right for me?

Choosing the right loan can feel overwhelming, but it doesn't have to be. Here are some steps to help you determine the best loan type for your needs:

  1. Assess the purpose: Start by clarifying what you need the loan for. Whether it's for home improvements, buying a car, or consolidating debt, the purpose will heavily influence the type of loan you should consider.
  2. Understand your financial situation: Look at your current financial health, including your income, expenses, existing debts, and most importantly, your credit score. Your financial situation will affect which loans you're eligible for and the terms you'll get.
  3. Compare loans: Use a loan comparison tool to review different options. Pay close attention to:
  • Interest rates: Lower rates mean lower overall costs.
  • Monthly repayments: Ensure the payments are affordable and won't strain your budget.
  • Fees and charges: Be aware of any additional costs associated with the loan.
  1. Consider your credit score: Your credit score plays a critical role. If it's lower, you might face higher interest rates or need a guarantor. Understanding this can guide you to the most appropriate loan type.

Remember, the right loan should fit comfortably within your financial landscape and help you achieve your goals without adding undue stress. Take your time, use the resources available, and make an informed decision.

Will I be accepted?

Loan acceptance depends on several factors specific to you and the lender's requirements. Here are the key elements that affect your chances:

  • Credit score: A higher score improves your likelihood of acceptance.
  • Income and existing debts: Your ability to manage repayments is crucial.
  • Loan amount: The amount you wish to borrow must align with your financial situation.

It's important to use a smart search tool to find loans with a higher probability of acceptance. This involves a soft credit check—meaning it won’t impact your credit score. By doing this, you can identify loans you're eligible for without risking unnecessary hits to your credit report.

How can I get approved for a loan?

Getting approved for a loan might seem daunting, but with the right preparation, you can increase your chances. Here’s what you can do:

  1. Improve your credit score: Start by checking your credit report for any inaccuracies or areas for improvement. A higher credit score can significantly boost your loan approval chances.
  2. Apply for the right amount: Be realistic about how much you need and can afford to repay. Using tools like loan calculators can help you estimate the appropriate amount without overextending your finances.
  3. Disclose all income sources: Beyond your main salary, include any additional income—like freelance work, rental income, or dividends from investments. This shows greater repayment capacity.
  4. Consider a cosigner: If your credit history isn't strong, adding a cosigner with a good credit score might help. A cosigner agrees to repay the loan if you can’t, reducing the risk for lenders.
  5. Double-check your application: Before submitting, ensure all information is accurate and complete. Even small mistakes can lead to a rejection.
  6. Space out applications: Avoid applying for multiple loans or credit products simultaneously. Multiple credit checks can appear as if you're desperate for credit, negatively impacting your credit score.

Typical loan amounts

When considering a personal loan, you'll find that amounts can vary widely depending on the lender and your individual circumstances. Here’s a general guide to typical loan amounts:

  • Small loans: Ranging from £1,000 to £5,000, ideal for covering unexpected expenses or smaller projects.
  • Medium loans: Typically between £5,000 and £15,000, suitable for larger investments such as home improvements or significant purchases.
  • Large loans: Usually from £15,000 up to £25,000, often used for substantial renovations or consolidating multiple debts.
  • Maximum offers: Some lenders might offer up to £30,000 for qualified borrowers, appropriate for major expenses like extensive home renovations or funding significant life events.

It's important to note a few key points about borrowing:

  • Interest rates: Generally, smaller loans tend to have higher interest rates. This is because lenders often view smaller loans as less profitable and potentially higher risk than larger loans.
  • Loan term: The length of the loan term can also affect your total interest cost. Shorter terms usually mean higher monthly payments but lower overall interest costs.
  • Borrowing strategy: Always aim to borrow only the amount you need and plan to repay it over the shortest term you can afford. This approach helps minimize the total interest paid, making your loan more cost-effective.

What are the best loan rates?

Finding the best loan rates involves understanding how loan amounts, terms, and your credit score influence the interest you will pay. Typically, larger loans with longer repayment periods tend to have lower interest rates than smaller, short-term loans. A higher credit score can also help secure lower rates, as it indicates less risk to lenders.

For example, if you borrow £5,000 at an APR of 5% over three years, the calculation would look like this:

Total Interest=£5,000×0.05×3=£750

Why compare loans through Moneyrepublic?

  • 1Identify the loans with the highest approval chances.
  • 2Receive loan options tailored to your specific needs.
  • 3Compare loans without impacting your credit score.

Can I compare loans if I have bad credit?

Yes, you can compare loans even if you have bad credit. AtMoneyrepublic, we believe that everyone deserves access to financial options, regardless of their credit history. We work with a variety of lenders who specialize in bad credit loans. These options are tailored to individuals with less-than-perfect credit, allowing you to find a loan that suits your needs. While the interest rates may be higher and the loan amounts might be more limited, comparing these loans helps you secure the most manageable terms available for your financial situation.

Beware of Scams

Fraud is a prevalent crime, accounting for over 40% of all offenses in England and Wales. Even savvy borrowers can fall victim to loan fraud. Always be cautious and remember, if a loan offer sounds too good to be true, it probably is. Watch out for cold calls, emails, or texts offering loans and asking for personal details or upfront fees. Be wary if asked to pay quickly or unusually. Ensure the loan company is authorized by the Financial Conduct Authority (FCA) to protect yourself from scams.

FAQ

Do I need a good credit rating to get a loan?

While a good credit rating improves your chances of loan approval and access to better interest rates, it's not always necessary. You can still obtain a loan with a bad credit score, although the options might come with higher interest rates and more restrictions. Remember, lenders consider various factors, so a lower credit score doesn't automatically disqualify you from borrowing.

How much can I borrow?

The amount you can borrow depends on the type of loan you choose and your financial situation. Factors like your credit score, income, and existing debts play a crucial role. For a secured loan, you might qualify for a larger amount, but remember, failing to meet repayments could lead to the repossession of your collateral, such as your home or car.

What is a representative example?

A representative example helps you understand the potential costs of a loan before you apply. It includes key details such as the loan amount, interest rate, loan term, representative APR, monthly repayment amount, and the total amount payable. This example is based on the terms that at least 51% of applicants receive, giving you a clearer idea of what you might expect to pay. Keep in mind, the actual rate offered to you can vary based on your credit score and personal circumstances.

How long can I borrow for?

The loan term, or how long you can borrow for, varies depending on the loan amount and type. Generally, personal loans are repayable over periods ranging from 1 to 10 years. However, some lenders may offer different terms, potentially shorter or longer, to suit various financial needs and goals.

What is a soft search?

A soft search is a type of credit check that allows lenders to review your credit score and history without impacting your credit score. This inquiry does not appear on your credit report, so it won't affect your future credit applications. At Moneyrepublic, we use a soft search when you utilize our eligibility checker, helping you understand your loan options without any risk to your credit status.

Can I overpay or pay my loan off early?

Yes, you can generally overpay or pay off your loan early. However, it's important to check your loan agreement first. While most lenders allow early repayments on personal loans, some may charge fees for overpayments or early settlement. These fees are meant to compensate for the interest they lose when you pay early. Always review the terms related to early payments to avoid unexpected charges.

What happens if I miss a loan repayment?

If you miss a loan repayment, you may be charged a penalty fee. Additionally, it could negatively impact your credit score, making it more challenging to borrow money in the future. It's important to contact your lender promptly if you anticipate difficulty in making a payment.

What if I’m struggling to repay my loan?

If you're finding it difficult to meet your loan repayments, it's crucial to contact your lender immediately. They may be able to offer flexible solutions, such as extending your repayment period to make the process more manageable. Avoiding communication and missing payments can harm your credit score and lead to penalty fees.

Will searching for a loan affect my credit rating?

Searching for a loan itself won't affect your credit rating. When you use tools like loan comparisons, these perform a soft search, which doesn't impact your score. However, each formal loan application you make is recorded on your credit file, which can influence your rating if done frequently.

Does APR rise with interest rate increases?

If your loan has a variable APR, it may increase if interest rates rise, leading to higher loan repayments. However, if you have a fixed-rate loan, your APR will remain unchanged, even if general interest rates go up. Always check whether your APR is fixed or variable.

What credit rating do I need for a loan?

There's no set minimum credit rating required to secure a loan, but a higher credit score generally improves your chances of approval. Good credit ratings vary by agency: Experian rates 881 and above out of 999, Equifax 531 and above out of 1,000, and TransUnion 604 and above out of 710. Even with a lower score, options like bad credit loans are available, though they often come with higher interest rates.

What is APR?

APR, or Annual Percentage Rate, represents the total cost of a loan over a year, expressed as a percentage. It includes not only the interest rate but also any fees and charges associated with the loan. Keep in mind, the representative APR advertised might not be the rate you receive; lenders are required to offer this rate to only 51% of applicants, meaning the rest may receive a higher rate.

What are secured and unsecured loans?

Secured loans require an asset, such as your house or car, as collateral. This gives the lender the right to repossess the asset if you fail to repay the loan. Unsecured loans, on the other hand, do not require any collateral. Instead, lenders assess your credit score and financial history to ensure you can afford the repayments. Unsecured loans often necessitate a good credit score and thorough affordability checks.

Can I get a joint loan?

Yes, you can apply for a joint loan with another person. Both applicants must meet the lender's criteria, which typically includes credit checks and proof of ability to repay the loan. It may also be necessary for both parties to reside at the same address. Joint loans can be a useful way to share financial responsibility.

What is a repayment holiday?

A repayment holiday is an agreement with your lender that allows you to temporarily pause your loan repayments for a specified period. This option is often available if you're facing financial difficulties. While it won't affect your credit score as missed payments would, interest will continue to accrue on your loan during this break, ultimately extending the loan's term.