When searching for a loan to help you cover unexpected emergencies, it is common to try and find the best APR loans. After all, it is only human to want to save money where we can. However, with an ever-growing market of financial products, it can be overwhelming to try and find low APR loans in the UK that suit your needs. That is why we will be covering low APR loans on this page, as well as where to find them and how to tell if they are right for your circumstances.
QuidMarket offer a short term alternative to payday loans, so we cannot promise to always offer a low APR. Instead, we focus on providing sustainably affordable loans to our customers, no matter their credit score. We allow new applicants to borrow between £300 to £600, and returning customers may be able to borrow up to £1,500. This is to be paid back over a period of 3 to 6 months, which allows you to choose a repayment plan that suits your current finances. If you are looking for a loan option for a short term that could be easier to manage than other loans, we may be able to help.
- FCA authorised, responsible lender
- New customers can borrow between £300 and £600*
- Returning customers may be eligible to borrow up to £1,500*
- Flexible repayment terms between 3-6 months
- No hidden fees
- No guarantor required
- Bad credit applications considered
- Quick and easy applications
- Decisions made personally by humans, not computers
*Loan amounts and repayment terms are dependent on affordability checks
What Does Low APR Mean?
APR stands for annual percentage rate, which is the official rate that is widely used to help customers understand the full cost of their borrowing. It takes all the costs of borrowing into account, including interest and additional charges, but not extra costs, such as late payment fees. Responsible lenders should tell you their APRs before you apply for a loan, so you should be able to compare costs across different lenders. You should always check the terms and conditions to ensure that you are getting the best short term loans with low APR.
Usually, APR is expressed as a percentage of the amount you are borrowing, which makes it simpler to calculate how much you will repay. For example, an instalment loan with a 15% APR should be cheaper than one with a 17.5% APR, but it is always sensible to shop around to find a rate that works best for you.
What Are Low APR Loans In The UK?
Affordability varies from person to person, and what one customer may consider as a low APR, another may think is reasonably high. However, in general, a low APR loan offers a low percentage, depending on your circumstances. Many lenders will base their APRs on your credit or affordability checks, for example, those with bad credit, may find that they are offered higher APRs than those with good credit. However, it is key to shop around and do search on a range of lenders to find the best deals for your needs.
At QuidMarket, we offer a payday short term loan alternative, which is to be repaid over 3 to 6 months. Because of this, our APRs may not be considered as low as some other lenders, but we base our lending decisions on affordability. We never want to leave our customers in further financial difficulties, so we conduct affordability checks for our payday loans with high APRs. This means we review your monthly income, essential outgoings, and other financial commitments to make sure that you can comfortably repay your emergency loan each month.
Can I Get Low APR Loans For Bad Credit?
For people with poor credit, it may be difficult to find low APR loans. Usually, the better APR deals are offered to those with good credit, however, there may be low APR loans for bad credit options available online. Typically, those with a lower credit score will be offered high APRs as security for the lender, but you can search to see what is available. Make sure you only inquire with trusted lenders who are willing to answer questions, provide reviews, and have FCA approval clearly displayed on their website.
If you are struggling to find low APR payday loans for bad credit, there are a few other options you can consider, such as:
- Using savings – if you have considerable savings, you may want to use them to cover your financial difficulties.
- Personal borrowing – borrowing from friends and family could put a strain on your personal relationships, so this should be a last resort. However, if you have a trusted person to help you, they could support you in covering any financial gaps.
- Credit cards – instead of looking for low APR loans for bad credit, try a credit card that offers a 0% interest period. Make sure you pay back as much as you can each month to keep your costs down, and do not be tempted to spend more than you can comfortably repay.
- An overdraft – if you have a current account, you may be able to get an authorised overdraft from your bank. These can sometimes be expensive, but could be cheaper than using a loan.
- Applying with a credit union – credit unions have a cap on how much interest they can charge, so they can be more affordable than low APR payday loans for bad credit, but you will need to apply to become a member first.
If you need further help with your finances or understanding the available alternatives to loans, please speak to the Money Advice Service for impartial support.
Choose QuidMarket For Your Loan
With QuidMarket, you are in safe and reputable hands. While we do not offer short term loans with low APRs, we have made the application process for our loans simple. This allows us to take the time to assess each submission for affordability to ensure you can comfortably make repayments. If we did not believe that you could meet repayment terms, we would not approve your application for your own wellbeing. Here are a few more reasons why you should consider QuidMarket as an option:
- FCA authorised – we are proud to be FCA authorised, which means that we are a trusted lender. If you approach a lender that does not carry this type of accreditation, please do so with caution.
- Flexibility – we strive to keep our loans as flexible as possible for all applicants, offering each individual the chance to repay their loan over a term that suits them. Whether the loan is required to cover a temporary cash flow issue or an emergency, our payday advance loan alternatives are designed to help.
- Options for bad credit – not every lender offers bad credit loans, but because we are dedicated to personally assessing each application, we may be able to help. Instead of viewing your whole credit history, we focus on your monthly income, essential spending, and financial commitments to determine your affordability.
If you have any more questions about low APR loans in the UK or the types of loans we offer, you may be able to find the answer in our FAQs. If not, please contact us and our friendly team will be on hand to help.
Our short term loans are for those requiring funds to cover an emergency expense, to repay over a few months. Due to this, the interest charge may be higher than other types of loans. Low APR loans can be found online, but these may only be available for higher values and for longer repayment terms. Before proceeding with any loan, you should compare terms and find options to match your circumstances first. This way, you can find an affordable option that you can maintain repayments for and avoid taking on a large loan for much longer than you need.
If you have bad credit, you may struggle to find options that provide low APR rates. This is because the risk to a lender can be larger, with those having a good or excellent score presenting a lower risk. Having a history of missed repayments or defaulting on agreements will mean some of the best loan rates may be unobtainable. However, this doesn’t mean you can’t get a good rate for bad credit. At QuidMarket, you can choose a flexible loan amount for what you can afford to repay. You will see how much the interest charge will be, and if this is affordable for you, then you can quickly apply.
Yes, all types of loan require the necessary credit checks to be performed. As an FCA authorised lender of short term loans, we work to responsible lending guidelines. If we cannot determine you can afford the loan you apply for, we will have to decline your application. Through us, credit checks are part of the approval process, but we also consider what you can afford to repay. If you apply for a low APR loan elsewhere, you should expect credit checks to be performed. Other lenders may require a higher credit rating to access the lowest APR rates, so may decline you based on a poor credit history alone.
A low APR loan doesn’t necessarily mean you can apply for higher loan amounts, so if you require a large loan, this may not have the lowest rates. You should look to compare loan options you find and choose the lender that provides the terms most affordable for you. Remember, the longer you choose to repay the loan, the higher the interest cost can be overall. Before proceeding with any loan application, always check that you are happy with the terms and interest rate offered.