Personal Loans

What is a personal loan?

Personal loans are available as secured or unsecured. For secured personal loans you need to provide the lender with security, usually your property. Unsecured lending does not require security and is the most common form of lending in the UK. More than 2 million personal loans are taken out by consumers each year.

Personal loans allow you to borrow any amount typically from £1,000 to £25,000. The money can be used on a variety of things from cars and home improvements to paying for a holiday. There are also a few reasons that some lenders may not give you a personal loan, such as for an investment or plastic surgery.

Most personal loans have fixed interest rates which means you will know what your monthly payment will be for the term, making it easier to budget. There are a few that have variable interest rates which mean that your payments can go up or down.

Interest rates for personal loans are stated as percentages, and are known as Annual Percentage Rates (APR). Lenders have to quote a typical APR when advertising personal loans. The typical APR is the interest rate that 66% of the successful people applying get. The lenders use a system called risk based pricing to assess you as an individual and decide what rate to offer you.

Personal loans are available to most people, no matter what your circumstances. If you have had bad credit in the past you will still be able to get a personal loan, although you will probably have to provide security and the interest rate may be higher.

Unsecured personal loans that are unsecured are a great way of borrowing money as the interest rates tend to be the cheapest of all forms of lending apart from mortgages, and you have the added benefit of a fixed term and monthly payment.

What to consider when applying for a personal loan?

Finding the right personal loan can be difficult as there are so many options available. It is easy to go to the first place that springs to mind such as your bank. However they are unlikely to have the best products, and they rely on you not shopping around. The difference in the amount you have to pay between the best and worst personal loans can be very high so it is worth taking a bit of time to find the best product for you.

Firstly, make sure you budget properly. Write down your ingoings and outgoings and make sure you properly understand how much you can comfortably afford monthly to spend.

Secondly, you can use our personal loan calculators to work out approximately how much you can borrow based on the monthly payments you can afford. This will enable you to make sure that the size of the personal loan you can afford to pay is sufficient for the purposes you need. Do not borrow more than you need, or more than you can comfortably afford to pay back.

See Myloanchoices loan calculator

Then check our selection of best selling personal loans to find the one that best suits you.

Personal loans from Myloanchoices

If you have a good credit history and have not missed any past debt payments, you should be able to take out an unsecured personal loan. Myloanchoices best selling unsecured personal loans are listed below. You can compare the products and then review the detailed product information for each one.

our best loans
loan provider typical APR max loan term range 1 Sterling Credit 7.6% £75,000 3-25 yrs 2 First Plus 7.9% £100,000 5-25 yrs 3 Picture 8.4% £100,000 10-25 yrs 4 Nemo 10.9% £100,000 5-25 yrs 5 Paragon 11.3% £150,000 5-25 yrs

If you have a bad credit history and are a homeowner, i.e. you own a property outright or have a mortgage, your best chance to get a reasonable rate of interest is to take out a personal loan secured on your property.

If this is the case, Myloanchoices can find you a competitive secured personal loan whatever your circumstances. You can borrow up to £100,000 over a 10 year repayment term even if you have a bad credit record.

The application process is easy with quick quotations provided over the phone. It is free and there is no obligation to apply for any products recommended.

See Myloanchoices best buy secured loans