Home / Personal loans
Consolidating debt, renovating, travelling or covering a big expense. The total cost over the term matters more than the advertised rate.
Personal loans are easy to get quotes for and easy to get wrong. The headline rate, fees, term and whether the loan is secured all change what you actually pay. I'll lay those out side by side so you can see the real cost.
A secured loan uses an asset, commonly a car, as security, which usually means a lower rate. An unsecured loan doesn't, so it's typically priced higher. Which suits you depends on what you're borrowing for and what you're comfortable putting up.
Rolling several debts into one can simplify repayments and reduce the interest you pay. It can also cost more overall if the new loan runs for longer. I'll show you both numbers before you decide.
If you own a home, consolidating into your mortgage is sometimes possible, but spreading short-term debt over a 30-year loan can cost far more in total. More on accessing equity.
If your circumstances or credit have improved since you took out an existing loan, a better rate may now be available. Exit fees and the remaining term decide whether switching is worth it.
Every application is recorded on your credit file, so shopping around by applying to several lenders can work against you. I'd rather work out which lender is likely to approve you first, and apply once.
Each application is recorded as an enquiry on your credit file, and several in a short period can count against you. One well-targeted application is normal and unremarkable.
Often yes, particularly on variable-rate loans. Some fixed-rate loans charge early repayment or exit fees, so check before you sign if you expect to pay it off sooner.
It depends on the lender and how quickly your documents come together. Some personal loans settle within days of approval.
