Life can be unexpected and sometimes present financial emergencies that require urgent attention. However, with such an ever-growing market, it can be overwhelming to try and find something that is right for your situation. That is why we have put together this guide to help you find the best APR loans and explain how to find the best deals to suit your circumstances.
At QuidMarket, we offer short term loans with repayment periods between 3 to 6 months, which are designed to be used in an emergency. We cannot promise to always offer the best APR rates, but we’re focused on providing sustainably affordable loans to our customers, no matter what your credit score may be. However, we understand that everyone has different needs when it comes to finance, so we believe in supplying information on other loans that are available. You may find that one loan type, such as personal loans, are much better for your situation than something like our short term loans, so by providing you with as much information as possible, we will help you to find the best loan APR deals for your situation.
What Does APR Mean?
APR stands for annual percentage rate and it is the official rate used to help you understand the full cost of your borrowing. It is slightly different from interest, because interest only refers to percentage charged on a loan. APR takes account of all the costs of borrowing, including interest and additional charges. All lenders should tell you what their APR is before you sign a loan agreement to enable you to compare the cost of one loan to another.
It is worth nothing that while APR includes all compulsory charges, it does not include extra costs, such as payment protection or late payment charges. The terms and conditions of a loan should always be checked carefully before agreeing, just to make sure you are getting the best low APR loans.
Usually APR is expressed as a percentage of the amount that you are borrowing. For example, an instalment loan with a 15% APR should be cheaper than one with a 17.5% APR, but you should shop around to find the best APR loan rates in the UK. The lower the APR, the cheaper the loan.
How Do You Find The Best APR Loan Rates In The UK?
There are lots of loans on the market and many of them may claim to offer the best APR loan rates in the UK, but there are a few things you can do to find deals that suit you.
Decide What You Want From Your Loan
Before you start searching for the best APR loans, you need to determine how much money you want to borrow and how long you will need to pay it back. This will allow you to compare lenders side by side with a clear idea of what you need from them. If you are not sure how much you want to borrow, you could use a tool on a comparison site that shows you the best loan APR deals and does the calculations for you. This can be handy to see how much you would be repaying each month.
Check Your Credit Score
The better your credit score is, the better chance you have of being offered a cheaper rate of interest on a loan. You should aim to maintain your credit score as much as possible over your life, but if you find that it is slipping slightly, there are several things you can do to improve. This includes:
- Leaving a considerable amount of time between credit applications
- Registering on the electoral roll
- Updating your addresses on bills
- Paying all bills and credit accounts on time
- Avoiding moving house or changing jobs too often
By checking your credit score and taking small steps to improve it, you may see an increase in lenders offering you their best APR for a loan. While there are options available for those with bad credit, you will typically be offered loans with higher APRs, so making improvements to your credit rating first is always wise.
Use Soft Searching
Rather than applying for several different loans at once to try and find the best low APR loans, use soft searching instead. This will protect your credit score and allow you to search for lenders without having to have a credit check. Whilst one application every so often will not cause much damage to your credit rating, multiple applications in a short space of time can impact your score and you may be less likely to be offered the best APR loans.
Shop Around For The Best APR Loans
Each lender will make a different decision when offering you a loan, so do not get carried away and agree to the first loan you see. Shop around and see which loan would suit you the most. While it may be easy to caught up in the idea of the best APR loan rates in the UK, it is worth remembering that loans are not just about rates. Look at other elements of loans, such as flexibility, transparency, and FCA authorisation.
Taking out a loan is not the best course of action for everyone, so you should consider if you really need a loan before applying. There are other options to try first, such as personal borrowing, saving, or applying with credit unions. However, if you have exhausted all other options, take the steps above to help you find the best low APR loans for your financial situation. If you need more support, please seek help from the Money Advice Service.
What Else Do I Need To Consider When Searching For The Best APR Loans?
While finding the best APR for a loan may be the end goal, there are many other factors to consider when looking for a loan. A few other things to keep in mind include:
- Term – you should look for the best APR loans that offer a term that suits your needs. Consider how long you think you will need to borrow for and how long you will spend paying the amount back.
- Amount – when searching for the best APR loan rates in the UK, you will need to keep the amount you want to borrow in mind. This is so you can make sure that the providers you are comparing actually offer your chosen amount and that you can afford the monthly repayments.
- Eligibility – before you apply for any loans, you should work out how likely acceptance is. This will save you a lot of time when it comes to applying, and it means that you are less likely to be rejected by lenders. This can also help to protect your credit rating from being damaged by submitting to many applications.
These should be taken into consideration, along with the APR and any other fees that may be incurred on top of your chosen amount. By narrowing down your search and comparisons, you can find the best loan APR deals much quicker.