Your Guide to Finding a Low Cost Loan

Low cost loans come in many different shapes and sizes. When you consider a low cost loan, you might only look at the Annual Percentage Rate charged, but you should also be aware of the other ways in which lenders products can benefit their customers. The key to finding a low cost loan is shopping around and understanding the market. Click here for our free Guide to loans to help find the perfect low cost loan.
Low Interest Rates

The most obvious way to choose a low cost loan is by looking at the rate charged, known as the Annual Percentage Rate [APR]. On the whole, choosing a low APR is the easiest way to save money on your repayments. But how do you know you're making the right choice? New loans are introduced all the time and lenders are always changing their rates, so the only way to tell which low cost loan is the best is to compare them all, including the key terms and features of the product.
Fixed and Variable Interest Rates

If you're looking for a low cost loan, you should ensure that your interest payments remain low by choosing a fixed rate loan. Since a rock-bottom APR is unlikely to get much lower, you will insure your payments against any changes in interest rate so that you can budget accurately each month.
Loan Fees

Some lenders charge a loan arrangement fee when you take out your loan, in much the same way that a credit card provider can charge an annual fee for owning the card. While this fee can bring down your interest rate, it's more sensible to take out a loan with a low rate and no fee, as there are plenty of these around. Some lenders also charge you the equivalent of two months' interest if you choose to repay your loan early. Early repayment of your low cost loan can seriously reduce the money you spend on it, so try to pick a loan that is easy to pay back if you find you can afford it.
Choosing a Low Cost Loan

The best low cost loan is one that has a low, fixed APR, no arrangement fee and no early repayment fee. You might think that this perfect loan is hard to find, but there are plenty out there if you know how and where to look. Be careful if your credit rating has been damaged though: your application for a low cost loan will probably be rejected and your credit score will suffer. Use our free postcode model to ensure that you are choosing only from providers who are likely to accept your application.

The MoneyExpert.com comparison service can search through all available loans for you, giving you a simple table of the best low cost loans for you and a summary of the key product features. Just answer a few simple questions about the type of loan you're after, and it will do the rest for you.
Compare Low Cost Loans with MoneyExpert's comparison service. It's free and impartial, and will only take a couple of minutes of your time. Once you've decided on a loan, you can then apply for it online there and then.