Personal loans: do your homework

Before you make any commitment to get a specific personal loan, it is always a good idea to do some research. This should not only apply to financial decisions but for other life’s choices as well.

Where can you find a personal loan in the UK?

Work smarter not harder

These days most research can be done over the internet, either at home or work (if you haven’t got an internet connection at home). Sometimes this can be time consuming but it’s worth the research as you will learn about what personal loans are out there as well as which companies offer the best deal for your specific circumstance.

In the past few years, a few websites have sprung up which specialise in comparing personal finance products such as personal loans. Most of these sites offer impartial results and they will display a table of results side by side including type of personal loan, repayment term, interest rate and repayment amount.

When comparing loans, ensure you compare the same type, for example you would get different terms and repayment data if you compared a 20 year secured loan with a 3 year personal loan.

Independent financial advisors (IFA) are another resourceful way to get impartial advice and guidance when searching for a personal loan.

As a reminder, APR is not the most important part of your loan.  You should be sure that you can afford the monthly payments and you should also compare TAR - Total Amount Repayable.