Finding A Personal Loan Online

Finding a Personal Loan Online

Choosing the right loan is no different from deciding on any purchase, as cost and provider are as important as the type of loan you decide on. Yet it’s not always easy to find the right loan. As banks are now less willing to lend, more and more people are being forced to look elsewhere for financial help. These days, this is often online. The good news is that online loans are often much cheaper. So read on for three types of online unsecured loan providers who can help you with the cash you need.

Online Loans
Photo By Simon Cunningham

Peer to Peer Loans

These are one of the fastest growing types of lender today, and peer to peer loans can provide some of the most competitive products on the market. Peer to peer lenders work by matching lenders with savers, as savers looking for a better return on their savings can make their money work harder than in the bank. Loans are available to individuals or companies, the APR rates are normally very low, and there are no early repayment fees. You can borrow any amount from £1,000 borrow up £25,000; however, you will need an income and good credit history to apply.

Online Loan Brokers

There are now plenty of online companies offering a good selection of loan products. Ideally though, it’s best to use one who finds the best lenders for you on your behalf. This increases your options and reduces the likelihood of being rejected and making multiple applications that can harm your credit record. A fee is normally payable, but it can save you a lot of time and legwork in searching for the right loan. For targeted loans suitable for your own personal financial situation, try who searches over 200 loan providers for loans and credit cards tailored to you.

Payday Loans

Payday loans companies have had a bad press for charging astronomical interest rates to consumers. However, used properly, they do perform a useful function in the lending market for those who have poor credit and need help. The APR’s quoted are very high, but it’s best to look at the Total Amount Repayable rather than the annual cost, as you will only be borrowing for a short time. If you have no other options and you do choose a payday loan, always repay at the end of the month, never roll-over loans to the next, and avoid taking out multiple loans.

A final word on loans….

If you’re taking out a loan, always be sure you can afford to repay to avoid expensive debt. In the case of unsecured loans, you need to be especially sure. Personal loans are divided into secured and unsecured, and broadly speaking both of them work in much the same way. However, secured loans are ‘secured’ against an asset such as a house. So if you’re planning on taking out an unsecured loan, always be sure you can keep up the payments or you could risk losing your home.

Wendy Lin is a professional guest blogger and established businesswoman. She has her own private business finance consultancy company and is a co-owner of another finance company.

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