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What Makes a Loan;Low Cost?
As interest rates continue to plummet at historic levels, there has never been a better time to obtain a loan in the UK. With plenty of reputable sources to choose from including online introducers like PickALoan, not only are loans more cost effective but they are also faster and more convenient. In fact, you can take out low cost loans on the bus or at the park with your mobile phone as long you are connected to the internet.
How to Get Low Cost Loans UK
The question now is how do you get a low-cost loan? The best way to go about it is by shopping around to find the best rates provided by renowned introducers like us at pickaloan.co.uk. Try and find the lender that provides the least in representative APR. They must also give the low-interest rate offers to at least 51% of its applicants so you will have a high chance of availing.
The Right Kind of Low-Cost Loans UK
Interest rates are the primary indicators of low cost loans. The lower the interest rates, the more cost effective it would be for you. Aside from interest rates, however, choosing the right type is also important. Normally, the two types of loans include:
- Unsecured Low Cost Loans – These low-cost loans do not require any form of asset whatsoever that you will need to put up as collateral. These loans are sometimes referred to as personal loans and the beauty about these loans is that you won’t risk losing your home, car, or any property in the event that you default on your payments.
- Secured Low Cost Loans – These lowcost loans would require you to offer an asset as collateral. In the event that you default on your payments, the lender has the legal right to take possession of your asset to cover the debt that you owe them.
Determining the right type of loan that works best for you is important because of the potential risks and benefits that they present. For instance, secured loans can provide you with larger borrowing amounts for better interest rates but will also put your property directly at risk.
The right Loan Term for Your Los Cost Loans UK
Choosing the right loan term is also important when availing for a lowcost loan. So what is the best loan term? Normally, longer loan terms would provide you with lower interest rates although it won’t necessarily mean that the loan will be cheaper. This is because while your monthly payments might be lower, you will be paying interest for longer which means it could actually cost you more in the end. With that being said, pick the shortest loan term available so you can maintain an affordable monthly payment.
Qualifying for Low Cost Loans UK
But before you apply for a low-cost loan, you must first ensure that you meet the necessary qualifications. Normally, lowcost loan lenders like (website name) have these few requirements for borrowers:
- Be at least 18 years of age and a resident of the UK
- Possess an income that meets the lender’s criteria e.g. £10,000 per year
- Must have a strong credit score and positive credit history
It’s important to note that qualifications may differ slightly from lender to lender and also on the type of low cost loan that you want to obtain.
Low Cost Loans for Poor Credit
If you have a poor credit rating, you might realize that taking out a low-cost loan is harder than you might have expected. This is because when you have a poor credit or a credit history that is non-existent, lenders will see you as a high-risk borrower who might default from your payment responsibilities. So if you want to avail of low cost loans, you need to build your credit back up to good standing. If you need more time to build your credit back, then you can look into other alternatives such as low cost loans for poor credit.
1.) Borrow From Family and Friends
If you really think about it, the best source for lowcost loans for poor credit is family and friends. Often, there is no interest rate attached to your loan and you can negotiate a flexible payment term that suits you best. You also don’t need to meet eligibility requirements whatsoever. The only downside about borrowing from family and friends is the drama that is inevitably attached to it. For one, it’s quite embarrassing opening up to your family and friends when it comes to financial matters. Also, when you miss out on your payments, it might leave a permanent bruise in your relationship with them.
2.) Guarantor Loans
If you can’t find a friend or family who will lend you the money that you need, another good way of securing low-cost loans for poor credit is having someone to co-sign your loan. This should be someone who is close to you, understands your situation and is confident in your ability to repay your debt. This also means that the person will have your back in the event that you find it hard to make the proper repayments. These loans are called guarantor loans and if you don’t repay your debt, the creditor will look to your co-signer for full payment.
Low Cost Payday Loans Online
While payday loans are known for being expensive and costly in terms of interest rates, there are low cost payday loans online from reputable sources like Pick-A-Loan that you can turn to when emergency situations arise. When all you need is several hundred or a thousand pounds at the most to address an urgent expense like car repairs, low-cost payday loans online are the perfect solutions. They are the easiest loans to obtain and all you need to do is make an application online and if you are qualified, you will normally have your money deposited into your bank account on the same day you made your application or the next business day at the soonest.
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