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Here at Bamboo, we get questions about how to find the best deal on a personal loan a lot, so we thought we’d take some time to break down a few of the things you need to do to find the best deal on a personal loan.
Get the best deal on a personal loan: our step-by-step guide
First of all, check your credit score:
In order to find the best deal on a personal loan, you need to start with an understanding of your credit score and your situation.
Use a site like Experian to find out your credit score to get a rough idea of what personal loans are available to you.
If you’ve got good or great credit, you’ll probably be eligible for most regular high-street and online loans.
However, if you’ve got poor or bad credit, you might need to look a little harder to find the best deal on a personal loan.
If you need to, fix any small things that are hurting your credit rating.
If you’re in no rush to borrow money, it’s definitely worth thinking about improving your credit score before applying for a loan. Not only will it improve your chances of being eligible for more products, you might qualify for better deals too.
For starters, make sure that you’re registered on the electoral roll. Close any unused accounts with credit on them too. Then wait a month or two (that’s how long the changes usually take to affect your credit score) and then see if your credit score has improved.
Then, start to shop around.
The key to finding the best deal on a personal loan is to shop around.
Even if you’ve got bad credit and don’t think you’re going to qualify for any loans, don’t just accept the first offer you find. There are plenty of options available for almost any credit score.
You can use sites like GoCompare or MoneySupermarket to find and compare personal loans that are right for you, but Experian gets our vote. It has a fantastic tool that lets you see the loans that are designed for people in your situation, letting you save a tonne of time shopping around.
You can also see an eligibility calculation too: a percentage representing the likelihood you’ll be approved for that specific personal loan. (They even do pre-approval, where you’re guaranteed to be approved for the loan if you apply.)
Just remember to pay attention to the interest rates and the APR. While interest rates are important to note, checking the APR is a better indicator of what you’re actually going to pay, as it includes fees. If you’re looking for the best deal on a personal loan, checking the APR is a must.
Finally, consider using a guarantor to qualify for a loan.
If you’ve got good credit, everything we’ve told you so far is probably enough to help you find the best deal on a personal loan.
But if your credit score is a little worse for wear, it’s well worth considering a guarantor loan.
A guarantor loan, in a nutshell, is a personal loan that you get with the help of somebody else. That person agrees to cover your repayments if you can’t pay, which makes you a safer bet for lenders.
Because you’re a safer bet, the lenders are far more likely to offer you better deals on a personal loan than if you were to apply without a guarantor.
Plus, a guarantor loan can help mend your credit score as you make regular, monthly payments.
At Bamboo, we offer bad credit personal loans for anywhere between £1,000 and £8,000 – if you’re looking for the best deal on a personal loan, why not see how much you could borrow? If you’re approved, you could be on your way to repairing your credit score within 24 hours.
- Author The Bamboo Team
- Posted 18 July 2019