Loans with Low APR
Most people start looking for a loan with low-interest rates and that wrong approach can lead to a financial disaster. Smart borrowers make informed decisions by looking for loans with low APRs, which is the right way of doing things.
As people tend to use the two terms interchangeably, very few are aware of the massive difference between annual interest rates and annual percentage rates (APRs). If you are not one of those financially well-informed persons, then no worries, in this comprehensive guide we shall discuss the two terms elaborately.
On a high level, interest is the price that you pay for the principal amount that you borrow and that’s just a small part of what APRs include. Many people do not understand the costs involved in borrowing a debt, and that works against them. So, if you thought that the annual interest rates are the only borrowing costs that you incur, then read through this guide until the end.
Debt planning is the key to financial success and at Money Pig, we do not just help you borrow loans with low APRs but do our best to help you succeed financially. We are always eager to connect you to the best lenders in the UK and help you negotiate profitable deals. So, this informative guide will educate you about everything you must know about loans with low APRs and how you can get them.
FAQs| Loans with Low APR
- What is an APR?
- How can I get loans with low APR?
- Where can I get loans with low APR?
- Does Money Pig lend loans with low APRs?
- How can I apply for a loan through Money Pig?
- Can I get loans with low APR without a guarantor?
- Is it possible to get loans with low APR without undergoing a credit check?
- How to compare loans with low APRs?
- Do personal loans charge lower APR than car loans?
- Do I need to have a good credit score to qualify for loans with low APR?
- How to get loans with low APR despite bad credit score?
- Are zero-interest loans a scam?
- What emergency loan options do you offer?
- How much money can I borrow?
- What if I fail to repay the loan on time?
Annual Percentage Rate or APR is the sum of all the costs that you incur while borrowing a loan, which is then distributed over the loan period and calculated in percentage form. In simple words, this is the total cost that you incur for borrowing a loan, which includes interest charged, set-up fees, processing fees, and other fees that the lender may levy on the borrowing. This cost is then distributed over the loan period by converting it into a percentage.
So, while borrowing a loan, it is not just the interest rates that matter, but the overall borrowing costs that you incur. Therefore, while looking for a loan, you must avoid focusing solely on the interest rates and start making decisions based on the APRs. However, you must have a word with the lender about how the lender structures the APR and must enquire about what that includes. As lenders structure their APRs differently, it is always better to ask for a clear breakdown of the APRs, in order to get a better understanding.
You can get loans with low APRs by transacting with reliable lenders willing to advance the type of loan that you wish to borrow. So, you need to ask yourself why you need a loan with low APRs — do you plan to buy a car? Pay your bills? Or consolidate your current debts? Your purpose of borrowing determines which loan options you must explore. If you are not very sure, then consider borrowing one of our personal loans with low APRs.
Also, it is worth confirming your loan amount eligibility before applying for the loan. Once you have done that, then borrowing lesser than the maximum amount that you qualify for gives you the bargaining power. So, if you qualify for a loan of £10,000 then by applying for only £7,000 you can try and negotiate lower APRs with the concerned lender. When it comes to borrowing loans with low APRs, your credit score matters a lot. If you have a good credit history, then your chances of getting loans with low APRs increase. Again, your pre-existing debts, age, income, number of dependents, and several other factors play a critical role in what you are offered.
While that answers the commercial part of it, you also need to oblige to the social distancing norms while borrowing the loan. We are fully aware of this and therefore offer our services online, which means you can get loans with low APRs straight into your bank account without leaving your home. We facilitate this by teaming up with lenders willing to process all types of loans online.
You can get loans with low APRs from banks, financial institutions, and direct lenders but the problem is that applying for a loan with too many lenders can ruin your credit score. This could create a hurdle in qualifying for loans with low APRs, which requires you to have a good credit score. Therefore, we help by mediating the loan on your behalf, with direct lenders who would be willing to approve it. We do this absolutely free of cost and connect you to the right lenders based on the information that you provide in your loan application.
Also, we run a soft credit check, which is nothing like the hard credit checks that banks and premier financial institutions run. The hard credit checks show up in your credit score and are the reason for your credit score to drop. However, our direct lenders trust our judgment and therefore rely on the information that we provide them after running a soft credit check on you. Based on this, you start receiving offers and once you have negotiated the terms and conditions, then the lender performs the hard credit check just before releasing the loan amount. This offers you an opportunity to negotiate loans with low APRs as well as limit the number of hard credit checks that are performed on you.
No, Money Pig does not lend loans all by itself but connects you to direct lenders who would be willing to lend loans with low APRs. Our unique business model connects potential borrowers with the right direct lenders, who would be willing to offer a profitable deal. We do this without charging the loan applicants and sustain our operations by collecting a small fee from the lenders. These are FCA-licensed lenders who have teamed up with us and are a part of our network. However, unlike other financial intermediaries, Money Pig is not into direct lending of loans.
Money Pig accepts online loan applications through its website and then forwards them to the direct lender who is most likely to sanction your loan. Once the loan is approved, you and the concerned direct lender negotiate the terms and conditions of the loan agreement and enter into it. The loan agreement is also executed online in most cases and the funds are directly released into your UK bank account. However, before applying for a loan from Money Pig, you need to confirm your eligibility. In the UK, you are required to have completed 18 years of age to enter into a valid loan agreement. Apart from that, you need to be a UK citizen who holds a UK bank account and is working in the UK.
Your bank may not offer this facility, but Money Pig has several direct lenders within its network who offer loans with low APRs, without guarantors. In fact, we do not even require you to provide collateral as our lenders offer numerous unsecured loans that are sanctioned quickly. Our goal is to make loans affordable for everyone and to achieve this we gather useful industry-related information. Based on those insights, we connect you to the lenders who are most eager to offer a loan with low APRs. So, we recommend that you specify your exact requirements in the loan application, and we will work on it accordingly.
No, in the UK’s financial services sector, no legitimate lender can advance loans without performing a credit check on the potential borrower. Most of the ‘no credit check’ loan offers are usually made by loan sharks who then charge very high-interest rates and follow illegal debt collection practices. So, this is a gray area and therefore it would be apt to conclude that you can get loans without a credit check, but it is always better to avoid them.
At Money Pig, we associate ourselves only with licensed lenders who hold an FCA license so we do not offer loans without credit checks, but instead, we do offer a couple of other legal and legitimate alternatives. The first one is the bad credit loans that our direct lenders offer. So, if you have been looking for a loan with no credit check due to low credit scores, then this is a safer and more legitimate option.
This not only protects you from loan sharks but also keeps you safe as all the licensed lenders and their debt collection practices are regulated by the FCA. So, in case of any discrepancy, you can report them to the FCA, with the proof of your claims. The other in-house practice that we follow is the use of soft credit searches. This protects loan applicants from the harsh impacts of hard credit searches as it does not show up in the credit history.
Anyone can borrow loans with low APRs by following a few steps based on their current credit scores. If you have good credit scores, then you can skip to first two steps. However, if you do not have a very high credit score then start by looking for lenders who offer bad credit loans. We can do that within a matter of a few hours after we receive your loan application. The second step is to find guarantors with good credit scores, who are willing to back you up. This is essential because most lenders charge higher interest rates from those with low credit scores due to the risk involved in lending to such persons. However, if you have changed your debt behavior and have a couple of friends or relatives willing to back you up as guarantors, then you might still be able to get a loan with low APRs.
The third step is common to those with all types of credit scores, and that is to decide the type of loan that you wish to borrow and file loan applications. However, most borrowers, especially the ones with good credit scores are unaware of the dire consequences that this step could have on their credit scores. When you apply to numerous lenders over a very short period, then multiple hard searches are performed on you. This lowers your credit score and therefore we have come up with a free solution. You can file your loan application on Money Pig’s website for free and we’ll not only connect you to several direct lenders through a single application but also provide inputs for you to compare loans with low APRs based on the details that you furnish.
You are probably asking this question because most people choose to buy cars with personal loans, rather than car loans. The reason for this is not the APRs but the ownership of the car, which is immediately transferred to those who pay with their savings, cash, or personal loan. On the other hand, in the case of those who borrow a car loan for their purchase, the ownership is only transferred after full repayment of the debt. That causes a hurdle for those who wish to sell their car during the loan period and buy a new one. After all, you must understand that APR is only one of the key metrics that you need to consider while borrowing a loan and not the only one. Nevertheless, Money Pig’s lenders offer affordable personal loans that charge lower APRs as compared to others in the industry. So, if you plan to follow the suit and apply for a personal loan to buy a car, then fill out the online loan application available on Money Pig’s website and we will get back to you shortly.
Not necessarily but having a good credit score does come with certain perks and one of them is your de facto qualification for loans with low APRs. However, the person you borrow from also matters and therefore we connect you to direct lenders willing to advance loans to those with all types of credit scores. These lenders are licensed and have been around in the financial services industry for quite some time. They possess the necessary experience and expertise to fairly evaluate your loan application and offer you the best deals.
Bad credit scores can hurt your borrowing prospects and can endanger your financial future. In most cases, those with bad credit scores are denied all types of loans, which isn’t the best situation to be in. So, if you have a bad credit score then you must find ways to improve it. Start by updating your contact details on the electoral roll, as having an old address can negatively impact your credit score and also your credibility. If you borrowed any joint mortgages in the past with a spouse or a partner that you are no longer associated with, then consider informing the same to the credit rating agency. By doing so, you minimize the impact that they have on your credit score. This is essential because if someone linked to you has a bad credit score then it has a direct impact on your credit score.
If you are stuck with many debts, then you could consider repaying or settling them to improve your credit scores. We recommend that you consider borrowing a loan to consolidate debts over a longer period of time, which would keep your monthly repayments in control. Also, avoid applying for multiple loans within a short span, as that could further lower your credit score. In the meantime, you may apply for Money Pig’s bad credit loans which are only recommended in case of emergencies. If you can furnish guarantors or security, then some of our direct lenders would still be willing to advance loans with low APRs.
Yes, in most cases no-interest loans are offered by scammers who are out there to trick you into a bad deal. As lenders lend loans to earn profits in the form of interest and other borrowing costs, you can be sure that there is no free lunch. Anyone claiming to offer such a deal definitely has a hidden agenda and ambiguous clauses laid out in the loan agreement. Therefore, it is recommended that you stay away from such persons and borrow only from FCA licensed and regulated lenders. You can do this with a single loan application filed on Money Pig’s website which may not get you a zero-interest loan but can definitely connect you with some reputable lenders willing to offer loans with low APRs.
Money Pig’s direct lenders offer several emergency loans that you can explore and therefore, we can confidently say that anyone can qualify for one. You can choose from several short term unsecured loans such as payday loans, student loans, cash advance loans, same day loans, and personal loans. Some of our lenders also offer bad credit loans to those with low credit scores, if they are stuck in an emergency situation.
The answer to this question depends on a lot of factors that lenders take into account before sanctioning a loan. This includes your current debts, income streams, credit score, age, number of dependents, and certain other factors. Therefore, the easiest way to go about with this is to use the eligibility calculator and then borrow at least 30 percent lesser than the maximum amount that you qualify for. Also, your borrowing capacity depends on the market value of the security that you wish to furnish. However, our direct lenders also offer several unsecured short term loans that you can borrow.
Failing to repay the loan has an adverse impact on your credit score which lenders make use of to evaluate your credibility for the purposes of advancing loans to you. So, you must plan ahead and do your best to minimize the chances of failing to repay the loan on time. So, before borrowing a loan, you need to be doubly sure of your ability to repay it according to the terms and conditions of the loan agreement. If in doubt, always consider a longer repayment period so that your monthly payments are minimized.
Also, set aside some of your savings to repay the loan just in case you lose your job and are left without any source of income. Despite adopting all of these measures, if you still fail to save up enough to promptly repay the loan, consider borrowing some money from your friends and relatives to make your monthly payments. Alternatively, negotiate favorable repayment terms and conditions because the loan agreement is the document in which the repayment terms and consequences for non-repayment are stated. We recommend these measures because failure to repay the loan on time will have a direct impact on your financial future.
To avail loans with low APRs from licensed lenders in the UK, Apply Now.