by : Angelo Drew

A recent research found that majority of shoppers take out store cards for the sake of convenience. These people consider convenience above the value as they know that store cards are too expensive a method for shopping.

But, all people cannot afford expensive methods of borrowing just because you get a little more convenience. Are you are looking for a low cost loan that does not impose on you a heavy burden of interest? If yes, you should consider other cheap loans that are available in the UK financial market.

A personal loan is a good choice. You get all the freedom that is needed to use the loan amount. You can buy new furniture, improve your home, consolidate your debts, go on holidays, etc. Besides, these are relatively cheap loans when compared to plastic money.

A personal can be secured or unsecured. Secured personal loans require your home as security and offer you the following benefits:

Extended repayment tenure

Extra loan amount

Low rate of interest

Easy availability

Convenient methods of repayment like variable interest rate, capped interest rate, discount interest rate and interest only method.

On the other hand, an unsecured personal loan does not require any security. If you have a good credit record and a reasonable DTI ratio, you can easily get it. A good credit record reflects your creditworthiness while a DTI ratio is determined to find out your repayment capability. DTI ratio is nothing but your total monthly debts divided by your total monthly income and expressed in per cent points. Normally, a DTI ratio of up to 20 per cent is considered as very good. It shows that you have enough income to repay your debts. There are many lenders in the UK financial market who can also provide you a
personal loan notwithstanding your bad credit record. Obviously, these cannot be cheap loans.