How to get the cheapest loan

The cheapest loan for you is not necessarily the same as that for your mate or sister. It depends on you and your needs. Just like a cup of tea, really. We all like it slightly different.

So, why not let us do the calculations for you? We can find you a cheap loan in less than five minutes. Our search is comprehensive too: looking for the best deals from over 80 different lenders.

Comparing cheap loans

We have teamed up with uSwitch.com to help you find a cheap loan. By asking you a few questions about what you want – such as, how much you want to borrow – we can produce a list of the cheapest loans for you.

The results show you everything you need to know: monthly repayments, typical APR, total repayable and early settlement charge. You can read the fine print too.

If you want to apply for a cheap loan, you may be able to do so on our site. We let you know the requirements for the loan before you start your application.

Does the cheapest loan have the lowest interest?

Usually, yes. But other costs could affect it too. If the difference in the interest rate between the cheapest loans is small, don’t blindly apply for the one with the lowest APR. It might be worth applying for the loan with the fewest extra charges.

The quicker you pay the loan, the cheaper it will be, because you will accumulate less interest. So when working out your long term financial situation, consider whether you can shorten the loan term. Also watch out for an early redemption charge.

Often lenders who offer the cheapest loans charge an early settlement fee. It’s usually the equivalent of one month’s interest. Take this into account when making your decision: two loans may have the same APR but one may charge an early settlement fee and the other doesn’t.

Can I get a cheap loan with Payment Protection Insurance (PPI)?

PPI is an insurance you can get to cover your repayments if you can’t pay because of an accident, sickness or unemployment.

PPI is expensive. It can almost double the cost of your loan. So if it’s the cheapest loan you’re after, consider getting one without PPI. But then of course you won’t be protected. It’s your call.

Tips for getting a cheap loan

• Don’t get PPI, unless you think you’ll actually need it
• Make sure you have a good credit rating
• Pay it back as quickly as possible

So why not put the kettle on, make yourself a cuppa and compare cheap loans now?