Best loans: Who offers them and how do I qualify?

A cheap loan in the U.K., or anywhere else, is a loan which has a cheap fixed APR percentage. It should be a convenient term, and carry low charges as well. However, cheap loans in the U.K. are not easily available in this market (as of July 2011). Here is how you get a best deal on loans:

How to find and qualify for the cheapest loan rate

Fix credit reports Borrowers must obtain their credit report from all three bureaus (Equifax, Experian and TransUnion) and check for errors. Lenders look back as far as six years and if they find defaults, they will consider the borrower a risky proposition. They also check borrowing limits and compare them with sums actually borrowed. Borrowers must increase credit score by paying off creditors on time and nullifying debt. Financial position
Lenders consider disposable income, which is income less repayments, insurance, taxes, and household expenses. If the disposable income is sufficient to pay the new loan instalments, they will charge a low APR and fee. Collateral security
Borrowers must take secured loans. Secured loan rates in the U.K. carry low APR and lenders are happy to deal with folks who offer collateral security. Borrowers must offer their investments or car titles as security to be considered for cheap secured loans. The security value must be substantial, almost equal to the loan amount. Avail joint loans
Borrowers must enlist the support of their relations. They should persuade a relation with a high credit score to become a co-debtor. Lenders evaluate credit history of all co-signers and offer the cheapest loan rate when they see great credit history. Type of loan
A fixed APR loan features a fixed APR for a fixed term while a tracker loan’s APR varies based on market conditions. A borrower must take a low Fixed APR loan. Negotiation
Typically, lenders quote a high sanction fee and APR. If the borrower has a good credit score, he must inform the lender that other institutions are willing to negotiate and that figures must be reconsidered. Many lenders dramatically reduce their quote. Borrowers may not be able to negotiate on early repayment fees, though. Loan comparison
There are many online tools which help borrowers compare cheap loans. Such tools must be used to zero in on the best lender and cheap APR loans. If required, the services of a broker can be availed.

To sum up

The best rate loan is one which features a low APR which is fixed for the entire term of the loan, has no arrangement fees and no early repayment fees. No one can get the best loan. Best rate loans depend on borrowers' income and credit documents, collateral security and negotiating skills.