Cheap unsecured loans - low APR advice

What is a cheap unsecured loan?

Basically, the lower the APR (annual percentage rate) on the loan, the cheaper the loan will be. Low APR loans allow you to keep down monthly repayments as you are paying less interest on the amount borrowed, and therefore you ultimately pay less for the loan.

What is APR?

APR is basically what the lender charges you for the loan. As well as paying back the amount you originally borrowed, you also pay back a percentage of the value of the loan as part of your repayments.

How much APR will I pay on an unsecured loan?

Interest rates vary from lender to lender - some will charge as little as six percent APR, but some can be as high as thirty percent! Shop around and look for the cheapest rate of interest you can find.

Are there any other ways of saving money?

As well as low APR, lenders might offer you flexibility on the loan. This might be a simple 'payment holiday' for the first couple of months while you find your feet, but some lenders will even pay the loan for you, usually for the first month if this is offered.

 

 

 

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