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Personal Loan Rates UK: Compare online

personal-loan-interest-rates-image
Robert Bester, Consumer Finance Expert

26th July 2021

3 minute read

Compare Personal loans

Finding the lowest personal loan rates for the UK can seem like a challenge, but given the number of options online through comparison sites, and eligibility checkers like MoneyMatcher, it can actually become a lot easier.

If you’re looking for the best personal loan rate for you but aren’t sure where to start, here’s a few facts about interest rates to get you started:

  • APR – stands for Annual Percentage Rate and indicates how much interest you would pay in a year when borrowing money
  • Fixed annual rate – most personal loans have a fixed annual rate meaning that the interest rate will not change during the lifetime of your having it (as opposed to a variable rate)
  • Representative example – this is to show you how much you are likely to pay given the interest rate, loan amount and loan term
  • Total repayable – this amount indicates the loan amount requested plus the calculated interest on top, showing you the total amount repayable

What is the best personal loan rate?

When it comes to personal loan interest rates, you are always aiming to get the lowest interest rate. This is because it means you will pay less for borrowing the same amount. You could find that two lenders will make the same offer, but one will charge you less for borrowing by providing a lower interest rate.

Getting a low interest rate is also dependent on your personal circumstances, including your credit score. This will give lenders an indication of your financial history and if you have been able to repay credit products successfully without any problems. The best personal loan rates will only be accessible if you have a Good or Excellent credit score.

Here is a handy rule when looking for personal loan interest rates to suit you:

  • Low interest rate – indicates the best personal loan product meaning you will pay less to borrow money. You are less likely to be accepted for this product unless you have a good credit score
  • High interest rate – indicates a personal loan product where you will pay more to borrow money. However, you are more likely to be accepted for this product, even if you have had issues borrowing in the past

Finding an interest rate that will suit your circumstances will mean you can get the best personal loan for you. That is why it’s important to check your credit score before you apply and also use an eligibility tool such as MoneyMatcher, which is free and will not affect your credit score.

You can find out more about personal loan eligibility here.

How to compare personal loan rates?

Comparing personal loans online has become very easy given the rise of comparison sites and eligibility checkers such as MoneyMatcher. It means you can view example products and tailor personal loans to fit your exact requirements.

While the standard loan products you can view on our panel might look appealing, you will still need to input your personal details to find products that fit your credit profile. This means using an eligibility tool such as MoneyMatcher to input personal details and find the best personal loan rate for you.

This step-by-step process below might give you a better idea of how comparing personal loan rates might look:

  1. Decide your personal loan amount, term and preferred lender
  2. Use an eligibility tool such as MoneyMatcher to narrow down your search
  3. View your results and compare the lowest rates
  4. Find the loan with the lowest loan rate and best chance of approval
  5. Apply!

Find out more information about the personal loan comparison process using this article here.

How to get the lowest personal loan rate

Finding the lowest personal loan interest rate for you is dependent on two things:

  • the comparison site you are using (with its panel of lenders)
  • your own personal circumstances (your credit score)

Using a comparison site with a large panel of lenders, combined with your having a good credit score will mean you can find a personal loan rate that suits you. Otherwise, when trying to find the lowest personal loan rate you might be best using the following tips:

  • Search and compare – use different comparison sites and tools to see the best results for you and compare loan rates between different lenders
  • Always use an eligibility tool first – using a tool such as MoneyMatcher will mean you can narrow down your search of the lowest personal loan rates and do it while not affecting your credit score
  • Improve your credit score – if you aren’t finding low interest rates when searching it could be to do with your credit score. Here are 13 ways to improve your credit score to get you started

If you’re ready to start your search for the best personal loan rate for you, head over to our panel of lenders to get started or head to MoneyMatcher using the link below.