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A good compare personal loans is important for those who want to get credit with decent interest, honest terms and above all, without headaches.
But comparing is not looking at a number on the banner; it is to understand the representative APR, find the portion that fits in your pocket and the total cost at the end of the contract.
Undoubtedly, comparing personal loans will help you make better choices. Below, we will make a comparison with the best alternatives on the market.
Our goal is for you to know the company’s history, the range of value it can achieve, the payment terms and the reputation of each company. In other words, we will show you everything about each of the personal loans. Let’s go!
Best personal loan options
1. TSB (compare personal loans)
As a rule, at TSB, you can get from £300 to £50,000, to be paid in up to 7 years. Representative APR ranges between 5.9%.
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It is important to note that the bank accepts joint loans, which can help those who need to improve their limits.
2. M&S Bank
M&S Bank offers a loyalty program. The values range from £1,000 to £25,000, to be paid from 1 to 7 years, and the APR is around 5.9% for those who have a good score.
In this alternative, it cannot place a borrower. Therefore, only your credit history is taken into account. Being a disadvantage for those who have bad credit.
Undoubtedly, this is a good option if you need a reasonable amount and especially for those who are already customers of the bank.
3. Tesco Bank (compare personal loans)
Tesco Bank’s main advantage is the payment term, of up to 10 years, which differentiates it from other alternatives. As far as values are concerned, it gets up to £35,000.
Remembering that the representative APR is around 5.9%.
Here’s the tip! Increasing the payment term too much, although it helps you in installments, harms you in the total cost. In some cases, you can pay up to 4 times the amount you contracted.
4. Santander UK
Santander UK has been strongly active in the line of personal loans. The reason for this is the good payment condition, as it can ask for up to £25,000.00 to be paid in 1 to 5 years.
In addition, the representative APR is 5.9% for good profiles, which already have a relationship with the bank.
The highlight of Santander UK is the relationship, as those who are account holders can have better conditions than those outside.
5. HSBC UK
HSBC UK allows you to get from £1,000 to £30,000. Plus, if you’re one of the Premier customers you can claim up to £50,000.
In addition, the terms range from 1 to 8 years, and you can still use a borrower to help with credit analysis.
However, not everything is beneficial, the representative APR is usually close to 6.4%, slightly above the market average.
Table compare personal loans
| Institution | Ange of values and term | Payment term | APR representative |
| TSB | £300 to £50 000 | 1 to 7 anos | 5,9 % APR |
| M&S Bank | £1,000 to £25,000 | 1 to 7 anos | 5,9 % APR; |
| Novuna | Up to £35 000 | 2 to 7 anos | 6,5 % APR |
| Tesco Bank | £3,000 to £35,000 | 1 to 10 anos | 5,9 % APR |
| Santander UK | £1,000 to £25,000 | 1 to 5 anos | 5,9 % APR; |
| HSBC UK | £1,000 to £30,000 for regular customers (up to £50,000 for Premier customers) | 1 to 8 anos | 6,4 % APR; |
Frequently Asked Questions about personal loans
1. What is the difference between the representative APR and the fee I will receive?
The representative APR is the average of 51% of approved customers.
Therefore, those who have a good credit score (above 700 points) will receive an equal or lower rate.
On the other hand, if you have an intermediate or poor score, you will have a higher rate.
2. How do banks determine the maximum amount I can borrow?
Institutions evaluate your net income, job stability, credit history, expenses, and the repayment period.
3. Is it possible to repay the loan before the deadline? (Compare personal loans)
Yes. Most British banks allow extra payments without penalty or with a reduced penalty.
4. Can I apply for joint loan with someone else?
Several institutions offer joint loans. This increases the approved amount and decreases the fee. Among the options, those who offer this alternative are: TSB, Tesco Bank, Santander, HSBC, offer this option.
5. What are the main risks when taking out a personal loan?
The primary responsibility is that the amount borrowed must be repaid in full, even if your financial situation changes.
In addition, delays cause interest on arrears and can harm your credit score, limiting future financing.
Therefore, we recommend that you choose installments that fit your budget and use the loan for productive investments, such as consolidating expensive debts or improving the house.
6. How not to get into debt when taking out a personal loan?
The best tip for not getting into debt when taking out a loan is to have good financial control. It can be a spreadsheet, a financial control app, or any other means. The important thing is to control your finances. Not sure where to start? See now the main budgeting tips for uk residents.
Conclusion
If you’ve come this far, you’ve already noticed that comparing personal loans requires a lot of attention.
When he analyzes APR, installment and total cost seriously, he can make an assertive decision, with the certainty that he will not regret it in the future.
Traditional banks like TSB, Santander, HSBC tend to offer lower APRs for those who are already customers of the bank. Tesco enters well when he wants longer installments.
In the end, the best loan is the one that meets your needs, with the lowest viable rate, total cost controlled. And it allows you to anticipate the installments..
Now it’s up to you; Do soft simulations, compare side by side, write down the Total Amount Repayable, and confirm the early settlement clause. That way, you’ll get a great deal.