Wise Money- all about borrowing money

So you want or need to borrow some money? You don't really like the idea and you certainly don't want to get involved with exorbitant interest rates? The annual percentage rate (APR) aims to give you a clearer idea about how much the credit will cost. It should include the effect of any charges over the year as well as the interest rate.

So what are the other important factors:

How much do you want to borrow?
The interest rates charged will be lower for larger amounts than for small loans.

How long do you want to take to repay the loan?
A personal loan may be cheaper than anything else if you want to repay the amount for longer than a year. Your capability to repay credit card debts each month will determine whether it is better to use a long term repayment period rather than use short term expensive credit card rates.

How much flexibility do you need?
Most personal loans tend to be based on fixed monthly amounts. With credit cards you can repay as much as you are able to, and vary the payments.

OK, so generally which personal loan is best?
An agreed overdraft with your bank can be surprisingly cheap. High street overdrafts currently range from 7% to over 20% APR. The current UK base rate is 4.50%. In the USA it is only 3.50% and across the euorzone it is 2.00%.

Beware of unauthorised overdrafts! The interest rate can climb to over 30% if you have not previously agreed the overdraft with your bank. A phrase comes to mind that includes the words money and old rope.

The easiest way however, is to borrow on your credit card. This is particularly so as many shops and outlets accept plastic. The interest rates charged are on average more expensive than an overdraft and can vary from currently 0 to over 30% APR. If you want to withdraw cash then there are usually additional charges.

The interest-free period, the time that you are not charged for the use of the money until you repay it all also varies considerably from none to 59 days. Recently, paying an annual fee no longer guarantees that you will be charged a lower interest rate.

You want to borrow more than you can or is available by any of the above methods, or you need a bit more time to pay the money back?
A personal loan works out to be the best way for most people borrowing for more than a year. Rates currently charged by lenders represented on this web site start at 1.19% APR. Amounts available start at £2,000 and go up to £500,000.

One of the reasons that we are so competitive is that the loans are "secured loans" i.e. they are backed by the assets in your home. If you are not a homeowner - don't despair we have some very reasonable non-secured loans from £1,000.

Also if you have an impaired credit history we have lenders that will accept some County Court Judgements as well as if you are in arrears with your mortgage.

Apply now!