Low Interest Personal Loan
A Low Interest Personal Loan is based on the prime interest rate. This is the interest rate commercial banks charge their most creditworthy customers.
When searching for a loan you need to work out the best personal loan rate available to you. To start, you need to decide how much money it is you want to borrow and the length of the repayment term. Knowing this information will allow you to compare like for like quotes from various lenders.
The interest rate you receive on a loan is essentially what the lender charges you to take the loan. The interest is added to your monthly repayments. You will know exactly what your payments are at the time of applying. The rate you are offered will be dependent on a number of things;
- the amount you are borrowing
- the term in which you take the loan over
- what type of loan you choose and
- your personal credit score
If you are unsure of the loan amount you want to borrow you can use our loan comparison tool. This will allow you to change the amount and loan period to find the best loan option. This will help you understand the size of the monthly repayments. The general rule with loans is the longer you take the loan for, the more the loan will cost you in interest overall.
Low APR Loans
Although there are lots of loans that may or may not be the right loan for you, the best loan rate is the personal loan with the lowest APR. The lower the APR the less you will pay for the loan. A personal loan of this type is more likely to be available to those people with a good credit rating.
The higher your credit score, the better the chance you have of being offered a lower interest rate on your loan. To increase the chance of you being accepted you should take steps to improve your credit score if possible.
Best Personal Loan Rates
When searching for a loan we would always advise to shop around with lenders. The personal loan APR is very important but there are other factors that will affect whether the loan is better suited to you. For example, will the lender allow you to make early repayments without paying additional fees? Fees like this can often make loans more expensive overall so looking at all details of the loan is advised.
When applying for a loan the lender will carry out a credit search on you. Money ID allows you to apply for a loan through their Get My Rates comparison tool without it affecting your credit score. A soft search will be carried out at the time of application. Soft searches can’t be seen by lenders so you can search and compare as much as you need to for your loan research. This allows you to view products that you are more likely to be accepted for because the lender will only carry out their credit search on the specific loan you are applying for.
Applying For A Low Rate Personal Loan
With this type of ‘hard search’ it leaves a mark on your credit files. Although a credit search once in a while will not cause too much damage, if you continue to apply for a number of loans in a short period of time, it will have a negative impact on your credit score. This would affect you receiving the best rate on the loan and may hinder the chance of being accepted for the loan you are interested in.
Please note that Money ID is a credit broker, not a lender. That means we don’t provide credit to you, but we can make your search for the perfect lender and suitable loan much easier by helping you compare your offers all in one place. Please also be aware that any decisions are not made by Money ID and are made by the lender. Agreements for loans are between the lender and the customer and not Money ID.