An unsecured personal quick bank loan can be a good way of borrowing a large amount of money. A quick loan for a large amount will usually charge less interest than many smaller loans, providing a useful method to consolidating debts. If the loan is required to make a purchase often a bank loan is better as the amount available is often more than an overdraft or credit card will allow.
By borrowing through a bank it makes it possible to effectively manage the debt as payments are made over a fixed period of time for a fixed amount. To compare various bank loans the APR (annual percentage rate) should be analysed. The APR includes the interest rate as well as any additional extra charges which may need to be paid. When comparing deals, look for a lower APR as this will be much cheaper overall.
An increasing number of quick bank loans are utilising risk based pricing, which looks into a customer’s personal circumstances to help calculate the interest rate payable. This can be misleading as If you have a poor credit rating, it may not be possible for you to benefit from the low APR advertised. The term to look out for is ‘representative rate’, which means the bank will be using risk based pricing. As well as being more expensive overall you will not know the interest rate until you have made an application. However, applying for multiple bank loans can adversely affect your credit rating. The bank will carry out a credit check which leaves a mark on your credit history report.
There are also secured loans available which are backed up by any property you own, such as your home. Rates are usually lower than the common unsecured loans, but are more common for borrowing large amounts.
It is important to balance out all factors and paying a lower APR over a longer period of time can often be more expensive overall than paying a higher APR over a shorter period of time.