Top 10 Personal Loans in the UK
Do you need some money to improve your home or buy a car? A personal loan will help you to get on track with that project. Personal loans allow you to get money from lenders without staking any of your properties. That’s why it’s also called an unsecured loan.
Here are some of the top 10 personal loans in the UK. But, let’s do some background examination first.
How Do You Qualify for a Personal Loan?
A personal loan is easy to qualify for if you have a good credit history and show a stable financial background. Lenders check your credit file each time you apply for a loan. That’s called a credit check. They then decide if your credit score is good enough for them to offer you a loan or not. Your credit score also determines the rate which your lender charges you and how much they are willing to lend you.
When a lender accepts to give you a loan, they charge an annual percentage rate (APR) in addition to the loan. This forms the amount of money you have to pay back subsequently. The APR displayed on brokers’ sites is referred to as advertised APR. Your lender may charge you higher or lower than the advertised APR. Personal loans are paid monthly for a period of time (called repayment term).
What is a Credit Check?
Before a lender accepts to give you a loan, they run a credit check. This means that they check your credit file for your credit history. This tells them how responsible you are financially so that they can decide if you are a good risk to take on. This check is important to them because, with an unsecured loan, they can’t come after you if you default eventually. The results also determine if they’ll give you credit at affordable rates or not. You can still get PayDay loans with bad credit, we show you how.
A check credit that’s done by lenders for personal loans is called a hard check. Each one of those checks is recorded in your credit file and leaves an imprint on it. If there are too many hard checks on your file within a period, lenders may become sceptical of lending to you. It shows that you’re desperate and may imply that you’re financially irresponsible.
How Do You Get the Best Personal Loans?
The best personal loan is a personal arrangement. This means that it is not just dependent on the lending company. Your history and needs as the customer form a fundamental aspect of the loan arrangement.
Assuming Noel and Jeff want loans. Noel wants to upgrade his home and fund a holiday trip while Jeff wants to get a new car. Now, suppose they apply to the same company for their loan. The company runs a credit check and discovers that Jeff had defaulted on a loan 2 years earlier while Noel has borrowed twice and paid back in full. To get a short term loan in the UK follow the link.
Noel stands a better chance of negotiating for cheaper rates than Jeff because his history has demonstrated that he is more financially responsible than Jeff. He can also get a higher loan amount than Jeff.
So, decide what you need the loan for and how much you’ll need. Next, check some comparison sites for lenders with the best rates. Their advertised APR will give you an idea about the rates you’ll be offered. However, bear in mind that the rate you get maybe more or less depending on the mix of factors explained above.
10 Best Personal Loans in the UK
We’ve collected a list of 10 personal loans for you to compare. For some of them, the representative APR shows the lowest rate they charge. Albeit, bear in mind that these rates may differ according to your circumstance. We can help you get quick PayDay loans online right now.
This loan is offered by the Bank of Ireland, Uk. As a financial services provider, AA is only a broker. AA personal loan is offered with a basic breakdown cover of 12 months for new members. Existing members can get an add-on for using the AA loans. The APR offered on this loan can go as low as 3.3% depending on the terms of credit. Members have the chance of getting a lower rating.
AA loans are available for UK residents who are 21 years and above. The repayment amount is fixed and communicated in terms of the agreement. You can borrow as low as £1,000. However, your interest rate will be high for lower amounts. Bear in mind that interests do not go higher than 29.9%.
Get personal loans up to £25,000 (or £50,000, if you have a current account) with TSB. If you’re borrowing between £7,500 and £25,000, this lender offers rates that can go as low as 2.8% APR and span a period of 1 to 5 years. The maximum APR is valued at 30.0%.
You can repay part of your loan when you want for a chance to pay a reduced interest. However, if you pay in full, you may have to pay some settlement charges.
TSB loans are available to people who are more than 18 years of age. For those who are less than 21, you will have to apply in-branch for a loan. People who are 21 and above can apply for a personal loan online. Online loan applications can be approved the same day for existing members of TSB.
Looking to borrow a high amount of money without breaking your back on interest rates? Post office personal loans are suitable for borrowing large amounts at reduced interest. APR is stated at 3.3% with the maximum going as high as 29.9%. Loan period can go up to 5 years. If your application is approved, you can get the money in one day.
Post office personal loan is only available to people who are 21 years old and above. You can also arrange to pay off your loan early in part or in full. With this broker, you can get low rates on small amounts, unlike with many other lenders. If you’re looking to consolidate debt with a personal loan, check if this loan works for your situation.
As a licenced credit broker, Monevo connects you to more than 30 banks when you apply through them for personal loans. They help you make the decision by providing real rates and real-time offers from creditors. You don’t even have to go through after you’ve gotten your rates.
Accessing personal loan through Monevo takes away any impact that a credit check will have on your profile. That’s because Monevo’s platform allows the lenders to run a soft check on your credit history. With this, you can compare real rates from different lenders before you make a decision. Moreover, you are not obligated to borrow through Monevo. Neither do they charge you any upfront fees for using their services?
It’s not every day that you find a credit broker that conducts a soft pull on your credit history when verifying your credit eligibility. Everyday loans’ soft search technology allows you to keep your credit file untainted, even if your application with them is unsuccessful. You won’t pay a fee for the application process.
Everyday loans will be very beneficial to you if you have a bad credit history. UK residents who are 18 years and above can access funds from this lender, even if you’re not a homeowner. With an APR of 99.9%, you can borrow any amount from £1,000 to £15,000. A loan can be spread within a period of 18 months to 60 months.
Oplo Personal Loan
Oplo (that’s the new name for 1st Stop Personal Loans) offers loans between £2,000 and £15,000. And, it’s very suitable for people with bad credit scores. Whatever you borrow from Oplo, you can repay within a period of 2 years to 6 years. With a longer repayment plan, you’re more likely to pay low monthly plans. Additionally, you can get a soft credit check on the platform to verify if you qualify before you apply.
You can complete your loan application online with Oplo. Representative APR is stated as 30.8%. Before you apply, use the Oplo calculator to work out the amount you’ll like to borrow. You can decide how long you want to span your repayment plan. When you’re done, go ahead and complete your application. Bear in mind that Oplo personal loan is only available to homeowners.
JN Bank Personal Loan
IF you’ve been in the UK for at least 2 years and are 21 years (at least), you can apply for the JN Bank personal loan. You can borrow between £1,000 and £15,000 while spanning the repayment period between 12 months and 60 months. If you choose to pay back part of the borrowed sum, you won’t be charged an extra fee.
Representative APR on JN Bank personal loan is 19.9%. Of course, this varies with your personal circumstance. However, the highest APR you can be charged is 24.9%. A pre-application eligibility checker helps you to find out if you can apply for the loan without denting your credit history. Bear in mind that you need to earn a monthly income of £1,000 – post tax – to apply.
Hitachi Personal Loan
Hitachi personal loan allows you to borrow between £1,000 and £25,000 between a period of 2 years and 5 years. The representative APR is dependent on the amount you wish to borrow. It ranges between 14.5% and 3.9%. The longer your borrowing period, the lower your monthly payment plan; it will also increase the amount you have to pay.
To apply for this loan, you’ll have to supply your employment information, how long you’ve been living in the UK, your annual income, and bank details.
Royal Bank of Scotland Personal Loan
Borrow up to £50,000 from Royal Bank of Scotland if you hold any of these accounts with them: current account, mortgage, or credit card. This loan is available to UK citizens who are 18 years or more, and who have not gotten a bankruptcy declaration in 6 years. When borrowing £7,500 to £19,950, the representative APR is stated at 3.4%. However, RBS does not charge more than 29.9% APR in any circumstance.
You can apply for your personal loan and get credited within one working day. This loan can be used to consolidate debt, buy a new car, improve your home, or plan for your wedding. Depending on the purpose of the loan and how much you are borrowing, you can span your repayment plan between 2 years and 8 years.
NatWest Personal Loan
NatWest allows you to borrow up to £50,000 from them if you’re a UK citizen who is 18 years or more, and if you have not signed up for a loan with them in the last 28 days. Representative APR here is stated at 3.4% but you won’t be charged more than 29.9% APR in any circumstance.
Loans are available within a working day if the application was successful. You can spread your repayment period from 2 to 10 years, depending on the reason and how much you are borrowing.
Frequently Asked Questions
Thinking of getting a personal loan? Here are the answers to some frequently asked questions.
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Can I pay off a personal loan early?
You can pay off a personal loan early if it was part of your agreement with your lender at the initial stage. Some lenders require you to max out your repayment period when you borrow from them. Otherwise, they charge you a fee for paying back early. The reason is that paying back early cuts out the money they will make from the transaction in the form of interest.
In a few cases, nonetheless, you’ll find lenders that offer you no charges should you decide to pay back early in part or full.
What is a repayment term?
A repayment term is the period agreed by you and your lender for your loan repayment to run. For some lenders, it spans between 1 and 5 years. For others, it runs between 2 and 10 years. Usually, your monthly plan reduces with a longer repayment term, but you will have to pay more. Alternatively, if you have a short repayment period, your monthly charge will increase but your cumulative payback will be less.
What is APR?
APR is short is annual percentage rate. It is the total amount of money that your lender charges you on top of the amount you borrowed. It includes the interest rate and the extra charges associated with lending you some money.
What is a pre-approved loan?
A pre-approved loan is a notification that shows that your loan application has succeeded in the first round of checks. This does not indicate that you have been approved to receive the loan. However, with the offer of a pre-approved loan, you are assured that the lender is open to scrutinizing your application further. If you scale through the later scrutiny, you can then have the loan.
Can a student apply for a personal loan?
A student can apply for a personal loan depending on their personal circumstance. A student whose only source of income is from a family allowance or a grant will have a hard time convincing lenders that they are eligible for personal loans. If, however, you can prove that you have a stable source of income then lenders will be more open to running a detailed check on your credit file.
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