Brits looking to take out a personal loan to pay for a large item or to consolidate debts may want to consider Nationwide.
That is because the building society cut the interest rates it is offering on its personal loans yesterday (May 5th).
Both existing and new customers can enjoy an interest rate of seven per cent on loans between £7,000 and £14,999 for a term of up to five years.
The building society has cut its interest rate by 0.2 per cent in total.
Richard Napier, head of banking at Nationwide, said: "If you're looking for a personal loan to help buy that new car, pay for a wedding, carry out home improvements or consolidate other debts, Nationwide's new rate is definitely one to consider.
"Whether you look at lenders on the high street or the supermarkets, our rate is still highly competitive and further reaffirms the benefits of Nationwide's FlexAccount."
There are other options available for Brits looking for a personal loan, such as the Sainsbury's Standard Loan with interest of 6.8 per cent.
M&S Money's loan has an interest rate of 6.9 per cent, which is the same as Alliance and Leicester.
The majority of these favourable interest rates are only available online or through a web aggregator.
Therefore Brits may want to use a price comparison site, such as MoneyExpert.com, to find the best interest rates currently on the market.
A good credit rating is needed by consumers wanting to apply for a personal loan.
Ways in which Brits can improve their credit rating include:
• Making early repayments on loans, credit cards or mortgages.
• Not missing any payments
• Settling any outstanding debt
• Being on the electoral roll
• Keeping creditors informed of their phone number and address.
A bad credit rating can be generated by missing repayments and applying for credit too often, especially if you keep being rejected.