What We Need to Do as Loans Rates Continue to Rise

By: Karl Bantleman

In the last 2 weeks, we have seen 5 of the leading providers increase their rates. Barclaycard, Lombard Direct, The AA, Natwest and Tesco finance have all increased the rates on loans and this is a worrying thing for customers.

The good news is that not all companies have increased their rates; in fact some have done the complete opposite and reduced their rates on loans. Some companies have increased their rates by as much as 11% whilst others have reduced theirs by as much as 7%. This all means that you need to be extra careful when looking for the best deal for you as all may not be as it seems.

Adverts can mislead customers, the rates advertised are a typical rate and normally is higher for loans of a larger amount. However, a smaller amount can incur a higher rate so it is important to check what the rate is for what you need to borrow to avoid any nasty surprises when it comes to your repayments. For a rate to be called "typical" it must have been offered to at least 66% of customers and this means there is still 34% of customers who may have received a higher rate.

The best way to find the best deals on personal loans is to shop online, this way you can compare the leading providers and find the one that suits you. Do not assume your bank will offer the best deal so search around. On the other hand, do not make multiple applications as this leaves a black mark on your credit rating which can result in a higher rate offered to you when you application is approved.

Despite some lenders increasing their rates on personal loans, some have reduced them which means shopping around for the best personal loans is imperative. Shopping online will help find the best deals on loans by comparing the leading lenders.

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