How To Find The Best Loans For You
If you find yourself in a financial emergency or need access to cash quickly, a loan could be a great option for you. However, with such a huge and ever-growing market, it can be overwhelming to try and find something that is right for you. That’s why we have put together this handy guide to help you find the best loans and identify the factors that could make a loan ideal for your circumstances.
At QuidMarket, we offer short term loans with repayment periods between 3 to 6 months, but we believe in supplying a thorough scope of all the loans that are available. You may find that one loan type, such as long term loans, are much better for your situation than something like a payday loan, so by providing you with as much information as possible, we will help you to find the best loans.
How Do I Find The Best Loans?
When browsing for the best loans online or in store, it is crucial to shop around. Conducting your own loan comparison will give you the ability to compare loans and the best loan rates in the UK. During your research, there are a few features that you need to keep in mind:
- Eligibility – the starting point for any loan is to work out what you are likely to be accepted for before you apply. This will save you plenty of time, and it means that your credit rating won’t be affected by constantly applying and being rejected by lenders if you don’t meet the eligibility criteria.
- Term – consider how long you need to borrow the money for. The longer that you spend paying the loan back, the smaller the monthly repayments will be, but usually a longer term also means you will pay more interest in total for the loan.
- Interest – interest rates are usually offered based on your credit rating and how long you want to borrow for. Different lenders will offer different rates, so you will need to research to find the best loan rates in the UK.
- Amount – when searching for a loan, you will need to keep the amount you want to borrow in mind. This is so you can make sure that the loans providers’ you are looking at offer your chosen amount and that you can afford the monthly repayments.
- Fees – when you think that you have found the best loans, you will need to check the fine print. Even the best loans companies can charge fees for early repayment, making extra repayments or late repayments.
What Are The Different Types Of Loans?
There are lots of options available when it comes to searching for the best loans, and ultimately, it depends on your circumstances and needs to determine which is suitable for you.
A personal loan is money that is borrowed at a fixed rate and repaid over a fixed term, either short term or long term. They can either be secured against an asset for collateral or unsecured. Unsecured personal loans are usually offered based purely on an applicant’s credit score and affordability, so if you think these would be the best loans for you, make sure your credit score is up to scratch. However, there are bad credit loans to help those with poor credit.
Personal loans are very common and people take them out for a variety of reasons, including paying for a holiday, home improvements or a new car.
Debt Consolidation Loan
A debt consolidation loan allows applicants to borrow money and pay off several existing debts. The individual debts are combined into one figure, so the repayments are made on one debt, rather than multiple debts. They can help to make your finances a lot easier to manage and provide a way for applicants to keep track of their cash flow.
Business loans are similar to personal loans, but they are specifically designed for business use. The provider will lend you a certain sum of money over a period of years, depending on your needs and affordability, which will be paid back in interest. Whether you want to make investments in your infrastructure or grow your company, these are the best loans for businesses.
A guarantor loan is an unsecured personal loan that requires a third party to guarantee the repayments if the original applicant defaults at any time. This is in place of the secured asset in a secured loan. These are suitable for individuals with poor or no credit history who may have been turned away by other lenders.
Bridging loans allow you to ‘bridge the gap’ when you need to pay for something, but are waiting for the funds to become available. They are mainly used by people who want to purchase a property, but are waiting for the sale of another property to go through first. These tend to be secured loans, so you may be required to secure it against a high value asset.
As the name may suggest, car loans are the best loans when you want to buy a car. They are similar to secured loans in that the money you borrow is secured against the vehicle you intend to purchase, so if you default on repayments, the vehicle could be repossessed.
A homeowner loan is secured against your property and is therefore only available to homeowners. These could either be long term or short term loans, but if you miss repayments, you home may be repossessed.
If you need any more guidance on the types of loans, which would be suited to you or support in your financial situation, please seek help from the Money Advice Service for free and impartial advice.
How Do You Find The Best Loan Rates In The UK?
If you have determined that a loan is the right course of action for your situation, you will need to find the best loan rates in the UK to avoid repaying too much. Usually, the best loans have the lowest APR, so the lower the percentage the less you will pay. Here are a few tips to help you find the best rates:
- Check your credit score and see if you can improve it – the higher your credit score is, the better chance you have of securing cheaper rates on loans.
- Don’t apply for multiple loans at once – use soft searching to find loans. Each time you apply, a check is carried out on your credit rating, which leaves a mark. One won’t cause too much damage, but lots of applications in a short space of time could be detrimental.
- Don’t be afraid to ask questions – lenders that have your best interests at heart should answer any questions you have about their rates.
- Look at the APR, the repayment period, the fixed or variable rate, and the application time
There are many comparison sites available that can help too, and will take out all of the guesswork that comes along with searching for loans. Using these tools can provide you with a visualisation on which are the best loan rates in the UK.
At QuidMarket, we are on hand to help, whether you want to get started with your short term loans application or want to contact us for more advice on securing the best loans. If you find yourself in financial difficulties, please contact the Money Advice Service for free and impartial help.