Provided that you handle your credit obligations responsibly, there is no reason why you cannot get a low APR loan on either a secured or unsecured basis. Even if you have had minor credit problems during the last six years, you can recover from this relatively quickly. Find out where you can get cheap loans in the UK.
How to get low APR loans
Pay your debts on time
If you want a good credit score, it is essential for you to meet all of your credit obligations punctually. Even paying slightly late will be reported to credit reference agencies, and this will lead to a credit score drop. Do not make too many applications
You need to carefully target your credit applications. Read through the terms and conditions to see if you are eligible. Too many credit searches within a short space of time will be construed negatively by the lender. Reduce debt and credit obligations
We are all allocated a maximum credit limit. So, borrowing too much money will affect the likelihood of getting accepted. Cheap APR loans are far more likely to be offered to applicants who are best-placed to afford the repayment schedule. Check for credit report errors
Do not fool into the trap of believing that all of the information that credit reference agencies hold about you is 100% accurate. Order a copy of your credit report from Experian, Equifax and Callcredit for £2 each and verify the accuracy of the data. The onus is on you to get any mistakes corrected before submitting your application for a secured home loan.
Where to get low interest rate loans
Best loan deals from Nationwide
Existing customers are able to borrow between £7,500 and £14,999 at just 7% APR. You can borrow between £1,000 and £25,000, but the rate of interest will be higher. Cheap loans online at HSBC
If you need to borrow between £7,000 and £15,000, you will pay a highly competitive 7.5% APR. The rate of interest is fixed for the full duration. However, you will pay one month of penalty interest if you want to clear the balance early. Sainsbury's shopper reward loan
If you need a smaller loan of between £5,000 and £7,499, you are able to borrow money from Sainsbury's bank at just 8.6% APR. You can also apply for a 3-month repayment holiday before you start making the repayments.