Best personal loan

Want the best secured personal loan in the UK?

Personal loans can be either secured or unsecured. Secured loans are given against a main asset like property (e.g. your home). More suitable for borrowing larger amounts over longer periods of time, secured loans are cheaper than unsecured loans, however non-repayment puts the security (your home) at risk.

Unsecured loans, which are usually used for borrowing smaller amounts over shorter time periods, do not need to be secured against an asset. They are usually more expensive than secured loans as the lender has no security and therefore there is no risk to your home. However, the lender can chase any arrears through the civil courts, which could at the end of the day result in a County Court Judgment against you.

A best personal loan in the UK, unlike other loans can be taken for any purpose like a wedding in the family, home improvements etc. It has now become quite easy to obtain them as well. In the past people would ask their banks for a personal loan if they needed to borrow additional cash. However there are now a large number of lenders, from supermarkets to online finance companies that have exploded onto the market with a range and variety of borrowing options. It is important to look around and find the best loan that suits you. Moneyeverything.com provides an easy to use comparison services for all types of loans and other financial options.

Despite what you're told through glossy advertising, there is no such thing as the best personal loan. There are a variety of loans available that cater to different people with different financial circumstances. You have to shop around for the loan that fits your circumstances and one of the best comparison sites for this is moneyeverything.com. Moneyeverything.com is one of the best resources in the UK to research your financial requirements helping you manage your day to day basics to long term financial commitments .

Increasing competition has caused the personal loan interest rate to fall drastically and lenders sometimes add extra hidden charges, which can be easily missed when finalising the loan options. The things to look out for are as follows:

APR
Lenders use the risk based pricing system to compute the typical Annual Percentage Rate (APR) of a personal loan. Under this system an applicant's credit history and financial circumstances are assessed to decide the interest rate charged on the loan. However, a lender has to offer the standard rate to 66% of applicants. APR also takes into account any other fees charged by the lender which gives the borrower the actual cost of the loan. Therefore APRs should be compared in place of interest rates when looking at loan options.

Early penalty charges
Sometimes the early repayment of a personal loan in the UK has a penalty, which is not fixed but usually is around a couple of months interest. Because of this it ends up costing you more instead of saving you money - the earlier the repayment the greater the charge. However you will find some lenders have cancelled this penalty but it's up to the borrower to check the options available properly.

Payment Protection Insurance (PPI)
Although you may worry about repaying a loan should you become unemployed or ill, Payment Protection Insurance (PPI) could be a costly option. Some borrowers are also not covered due to the many limitations with these insurance policies. Self-employed people are not protected for example if the policy only pays out if the borrower loses his job. At times, the full amount of the insurance is added to the advance so that the borrower ends up paying more interest. If you really feel insurance would give you piece of mind, another option is to check with independent organisations that charge reduced premiums for the same cover.

If you want to find the best personal loan for yourself, you must do some research. Ask friends and relatives, surf the Internet as well as check the newspapers for lenders. Get a number of written quotes and do your best to improve your credit rating before applying for a loan. You must also be clear about how much credit you need and can afford. Some other things to check are the repayment period, making a choice between a secured and an unsecured personal loan, the interest rate etc. As mentioned before, it is very important to read the small print for hidden costs and penalties.