Getting the best online personal loan

Getting the best online personal loan deal may seem daunting with many loan providers competing with each other. We take a look at some of the best online personal loan deals currently available.

Best online personal loanFirstly a personal loan is usually for a loan between £7,500 and £15,000. Broadly, it provides you with access to personal finance that’s more than you can put on a credit card but less than you would nornally seek a secured loan for.

Don’t forget, a personal loan is often referred to as an unsecured loan as no collateral or security is required; in contrast a secured loan requires security and usually your home provides this.

Where can you get a personal loan from?

There are a mumber of sources from which you can get a personal loan. These include banks, building societies, supermarkets and high street shops.

These personal loan providers will decide on whether or not to let you borrow based on your credit history. They will use a credit check to assess your credit rating.

The better your credit rating the more chance that you will be granted a personal loan.

It’s a good idea to check your credit report before you apply for a personal loan. That way you know the latest credit information on there and if there are any issues you can sort them out before you apply and your potential lender sees them.

To help, you can currently get a free credit report with CreditExpert.

How can you decide what’s the best online personal loan?

Getting the best online personal loan will partly be depdendent on your specific circumstances, including your credit rating, and your requirements, such as how much you need to borrow and over what time you want to pay the money back.

Of course though the cost of borrowing is a key factor in determining the best personal loan.

Be careful to review the actual interest you will be charged and not just the ‘Typical APR’ quoted – you may end up paying more or less than this interest rate. If there are any other costs you need to factor these in too.

Where you can you get the best online personal loan?

Last updated: 14 November 2009

Alliance & Leicester – personal lons provided by Abbey National plc, available to both new and existing customer, the Typical APR rate is 8.9%  === > Get more details

Halifax – personal loans up to £13,000. For loans over £7,000 Typical APR rate is 8.1%  === > Get more details

Bank of Scotland – personal loans available for between £1,000 and £25,000 for existing Bank of Scotland customers. Typical APR rate is 8.1%  === >  Get more details

Sainsbury’s – for £7,500 to £15,000 typical APR is 8% for Sainsbury’s shoppers with a Nectar card === > Get more details

These are examples of current personal loans deals available. You need to assess your own needs and then select a personal loan accordingly, which may or may not be one of these listed.

Do you need a loan for a greater amount?

If so you might want to consider a homeowner loan, otherwise referred to as a secured loan – see our article ‘How to apply for online home loans‘ for more info on this.

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