Money Saving Expert Martin Lewis has shown a step by step guide on loans. For the current cheapest rate on a £5,000-£7,500 loan is Tesco Bank. He has more to say here:
This is both a good and bad time to try. Good because rates are super-cheap, bad because loans are tougher to get. Still it's worth a check. Yet as there can be early repayment charges if you repay a loan early, it's not just about comparing APRs. Here's my mini step-by-step...
- STEP 1: Check if it's likely you can get a cheaper loan. Our Loans Eligibility Calculator shows your odds of acceptance for many cheap loans. If you've little chance, don't carry on. If cheaper loans are likely, keep checking.
For an idea of current cheapest rates: for £3k - £5k Hitachi* is 8.4% APR, for £5k - £7.5k, Tesco Bank is 3.4% APR, and for £7.5k - £15k, Cahoot* is 2.8% APR. All these are 'representative APR' though, meaning sadly only 51% of accepted customers need get the advertised rate. For borrowing under £3k, check out 0% money transfer loans.
- STEP 2: Ask your current lender for a settlement figure. Ie, how much it'll cost to clear your current loan including any early repayment costs (which tells you how big a new loan you'll need to get).
- STEP 3: Calculate how much it'll cost you to stay with your current lender. Multiply your monthly repayments by how many months you have left (ask it if you don't know).