Loan Low Down
If theyíre thinking of a loan they could be in for a shock. The loans market has shown some signs of life in recent months, but lenders remain cautious, and getting approved for a loan would still seem to be trickier than getting an expenses claim signed off if youíre a Westminster politician.
For those considering a loan, MoneyExpert.com gives a run down of the market.
Loan Interest Rates
For over a year now the rates offered by lenders has been pretty much divorced from the rate set by the Bank of England, which means that despite the base rate plummeting the loan rates in best-buy tables have remained high.
That said, recent months have seen increasing competition from providers, and if youíre credit history is in good order then you may be able to source an affordable product.
The average typical APR on personal loans is now 11.7% but rates offered will obviously vary according to the loan amount required and your credit circumstances.
Sainsburyís Finance and Tesco currently offer loans below 8%.
Former MPs may feel differently but many of us are reluctant get hold of more cash than we feel we strictly need. When it comes to loans, though, itís often a better bet to opt for a large loan, perhaps using the excess cash to consolidate other debts you may have.
The average typical APR on personal loans between ?,000 and ?,000 is currently just over 15%. If you were looking to borrow ?,000 the average rate would drop 3% to just over 12%, and youíd be in the market for the Tesco and Sainsburyís Finance loans described above.
Know Your Credit History
Fortunately most peopleís names wonít be quite as tarnished as those unfortunate politicos but if youíve got a black mark on your credit history then you do risk being turned down if you apply for the wrong products. And being turned time and time again only makes things worse!
MoneyExpert.com offers a unique service that matches your requirements with the most suitable loans, so giving you a much better chance of being accepted.
Shop Around For The Best Deals
The loans market has started to pick up again in recent months and as providers become increasingly competitive the rates they offer are likely to move more quickly. Consequently itís really important to look across the whole market before you opt for a product as the best deals may have only just been made available.
MoneyExpert.com compares products across the entire loans market for you, ensuring you bag the best deal.
Compare Personal Loans, Secured Loans or Payday Loans.