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Finding the best loans online
Find out the best loans online to suit your needs. Save money now, compare loans online and apply for the right one for you.
Find out the best loans online to suit your needs. Save money now, compare loans online and find cheap loans online.
Read on for our guide to online loans and how learn more about you can benefit from borrowing online.
Compare loans
Compare all sorts of loans from personal loans to debt consolidation loans.
How can I get the best online loan?
There is a huge choice in personal loans and the best way to compare the best loan rates is to use an online search, such as the one we provide at Uswitch.
This is because it is a quick and easy way to compare the different loan deals across the market. You can input the amount you want to borrow with a personal loan and compare interest rates, fees and repayment plans.
Are the best personal loan rates only available online?
You can shop around for the best loan either via a local bank or building society branch, or online using the lender’s website or a loan comparison service like Uswitch.
As a result of Covid-19 and lockdown, it has become more difficult to visit bank branches. Also, lenders who do not have branches and only offer loans online often offer lower interest rates than high street banks and building societies. This is because they have fewer overheads and can pass their savings directly to their customers.
Some high street banks also offer online loans, which work in the same way.
Using a search tool to compare online loans enables you to look at lots of different personal loans in the same place and compare the best deals. This saves you time and shopping around for the best loan deal could also save you money.
Find out more on How to compare the loan market for the best deals
How do I get the best interest rate on a personal loan?
There are a number of different factors which affect whether you will be approved for a personal loan, and what interest rate you are likely to pay.
These include:
Having a good credit rating: the better your credit history, the lower your potential risk to the lender and therefore the lower the interest rate they are likely to charge you.
How much you want to borrow: The size of the loan can affect how much you will be charged in interest.
Whether you have any other debts or borrowing: The lender will make a decision on how financially stable your circumstances are. If they deem you to be lower risk then your interest rate will most likely be lower than if you were considered to be a higher risk customer.
How you plan to repay your personal loan: Paying your monthly repayments by Direct Debit will often accompany a lower interest rate.
What are the advantages of an online loan?
Choosing an online loan means you can find and apply for credit without having to post or fill out paperwork. Your application can be done online.
You can also find a wide range from quick payment online loans only to online loans for bad credit as well as instant decision loans.
To find the best loans online that suit your needs, you can shop around for the lowest interest deals.
Online loans enable you to check your current balance online. Updating or changing details is also often far easier as you do not have to go into your local branch, you simply have to go online, log in and enter your new details.
Online personal loans simple to apply for and new online banks are entering the market all the time. This competition means that you can find some extremely cheap loans online.
On top of that, our directory of lenders gives you all the information you need about the online loan companies you are considering and what they offer.
How do I compare loans online and save money?
Uswitch loans offers a personal loans comparison service that will help you find a suitable online loan for you. All you need to do is enter a few details about the type of loan you need, how much you would like to borrow, and it will sort through them all to find the one that would be most suitable for you. Once you have made your choice, you just apply for your loan online.
Compare online loans
Compare all sorts of loans from personal loans to debt consolidation loans.
Rates can really vary, so it is worth shopping around to make sure you are making the right choice.
Find out how to improve your credit rating
If you have been unemployed or have recently lost your job and need to use credit, you can find more information on our guide to Credit cards for the unemployed
If you have never owned a credit card before, read our guide to your First Credit card to find out the best way to build your credit rating and use credit wisely.
Loans Frequently Asked Questions (FAQs)
I need a few hundred pounds. Should I get a payday loan or take out a cash advance with my credit card?
If you need a small amount of money in a hurry there are a number of ways of accessing it. Here are some of the options, and the pros and cons involved:
Payday loans charge high rates of interest and it is easier to fall further into debt if you take one out. Also, lenders who are assessing your financial position in the future might take a dim view if you have applied for a payday loan, as it suggests you are struggling to mange your finances.
Payday loan providers charge very high rates of interest and are not advisable.
If you can, use an authorised overdraft attached to your current bank account rather than a payday loan. It will be better for your finances in the long run.
Authorised overdrafts are probably the cheapest way to ensure you have access to an emergency fund and are easy to set up. You should approach your main bank provider to whom your salary is paid and request an overdraft facility. They will run a credit check to authorise this.
Credit unions are another good alternative. These financial co-operatives are member-run and offer better rates for small loans under £4,000.
Credit card cash transfers are an expensive option, but possible. Withdrawing money on a credit card is expensive, with 2-3% fees just for withdrawals, although as a last resort they are still a better option than a payday loan, as the interest rate will be much lower.
Would a personal loan be the best option for me to buy a new car?
There are a number of ways to pay for a new car, including a personal loan, overdraft or using your savings that you have built up in advance. There is also the option to use car finance, which may be offered to you in the showroom.
Whatever option you choose, it is very important to be clear about the interest rates and fees you will need to pay, including any arrangement fees and penalties for paying off the loan early or missing payments. Ask for more information if you are not sure exactly how much you will be paying each month. Find out what the overall cost of the loan will be, and how many years it will take you to pay it off.