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. quick loan

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.

If you have taken out several loans and are struggling to keep on top of the challenging task of making repayments to countless lenders, debt consolidation loans could help you.

What Are Debt Consolidation Loans?

Consolidation LoansA debt consolidation loan will enable you to pay off your existing debts and transfer all the money you owe into a single loan with one manageable monthly repayment. While you will still be required to repay all the money you have borrowed, a debt consolidation loan may help you to reduce your monthly outgoings. If you refinance your existing debts and your new loan is associated with a lower interest rate, you could effectively reduce the amount of money you have to pay back. If you are able to successfully pay off your loan and run up no further debts, you will improve your credit rating.

Am I Eligible For A Debt Consolidation Loan?

To determine your eligibility to a debt consolidation loan, your chosen lender will not only look into the amount of outstanding debt you have to your name but will also assess your credit risk.

If you have history of bad credit, your lender may only consider providing you with a secured loan, which will require you to use a valuable asset, such as your property, to secure your loan. However, you must ensure that you will be able to repay your new loan as if you fail to do so, your valuable asset could be at risk.

When taking out a debt consolidation loan, you must calculate the amount of money you owe your lenders and use the resulting figure as an estimate as to the amount of money you should borrow. If you use a debt consolidation loan to take out more money than you need to, you will end up adding to your debts.

You may find that borrowing more money to cover you debt isn’t the solution – to find out more information on other possible solutions to your debt, visit