Before applying for a loan online read our loans tips

Our loans tips may helped you understand how to make an informed choice before applying for your loan.

Be realistic

• Never borrow more than you can afford to pay back each month.
• Never apply for more than one loan at a time.
• If you can afford to pay back a loan over a short period do so. You’ll pay far less interest.

There are 2 main loan types available for borrowers:

Unsecured personal loans

This loan type is repaid each month with added interest, which is usually fixed. You’re not required to offer any security to the lender such as your home. If you default on payments the provider will need to take you to court to recover the debt.

Secured homeowner loans

This loan type is a personal loan which is secured by a second charge on an already mortgaged property. These loans need to be entered with great care. If you fail to repay the debt, you could lose your home.

APR (Annual Percentage Rate)

Your loan will have an APR, which is the Annual Percentage Rate. The APR will include not just the loans interest rate, but also any additional set up charges showing the true cost of the loan. Before entering into any loans agreement, please make sure you know and understand all the facts about the deal.

Consider Insurance

If you fall ill or lose your job you’ll still need to repay your loan, so consider taking out loan insurance to cover your payments.