Cheap Loans, Don't Believe The Hype!
Lots of UK lenders advertise what they call cheap loans, but you should never choose a loan based on an advertising campaign or a claim that seems too good to be true. If you do your homework and shop around, you should be able to find a cheap loan that suits your needs.
Why should I look at the rest of the market before picking a cheap loan?
Without knowing what the loans market looks like, you won’t know what’s a cheap loan and what isn’t – if you only consider one loan, you’ll never know whether you could have saved money with a different one.
Looking at the loans market is easier than it might seem. A quick glance at some of our Best Buy tables should tell you what cheap loans are available to you, and how much you should be paying.
Will I get the cheap loan rate advertised?
The rate that most lenders choose to advertise is called the ‘typical APR’. This isn’t the mean average – it’s the rate offered to more than 66 per cent of successful applicants. You may be offered a higher rate, or your application may even be declined, depending on the risk you represent to lenders (this is usually based on your credit history).
What cheap loans are available at the moment?
How cheap a loan is doesn’t just depend on the APR. There may be other charges involved, and different lenders will charge different amounts for payment protection insurance.
But the APR is certainly a good place to start if you’re looking for a cheap loan. Take a look at our Best Buy tables for an idea of which loans are currently leading the market. You’ll need to look at the small print as well, and each lender should be able to help you out with any particular questions you have. You can also ask for a written quotation.
Read our guide on Understanding Loans, or use our Loan Calculator to find the best loan for you.
| 
