Not yet registered? Create a OverBlog!

Create my blog

A guide to low APR loans

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.

Same category articles Banking

How to compare saving accounts

How to compare saving accounts

The savings account that you choose will determine how much money you make on your investment and how much access you have to your money without a penalty. You should think about your options carefully and compare all money accounts before choosing one. Things to consider include the interest rate, the minimum investment involved and what type of access you will have to your money.
The pros and cons of using a simple interest calculator

The pros and cons of using a simple interest calculator

You normally calculate the monthly rate of interest by dividing the total APR by 12 and multiplying this figure by the principal. However, the simple rate of interest is calculated by dividing the APR by the number of days in the month. This figure is then multipled by the outstanding balance on a daily basis. Find out when you will and will not save money with a simple interest calculator.
Life after bankruptcy: The facts

Life after bankruptcy: The facts

After declaring bankruptcy in the UK, you're normally discharged after a year. Following bankruptcy discharge, you need to take steps to restore your creditworthiness so that you can qualify for car finance, credit cards and mortgage loans after bankruptcy. Perhaps more importantly, once you've restored your credit status, you need to avoid debt and credit problems in the future.
What to consider when applying for instant loans

What to consider when applying for instant loans

Quick decision loans are the preferred option for people who have been declined for credit elsewhere due to a bad credit history. Instant loans are widely available online and on the High street without the need to pass a credit check, but they aren't cheap. The cost of borrowing is high, but you can use the money for any purpose.