Loan comparison

Personal loans are available in varying amounts that you specify, and at different interest rates dependent on the loan company offering them, the purpose of your loan, and your credit rating.

Unsecured loans are the most expensive and a secured loan in comparison will offer a lower interest rate because the lender has the extra security of having a legal charge over your property; allowing them to sell it to repay your borrowing if you break your loan terms and conditions.

Loan companies often use a loan comparison table in their advertising as a marketing tool to illustrate their headline rate compared to other lenders; making their rate appear as most favourable. The headline rate is not the method by which loan comparisons should be made however, and each lender is bound by law to also advertise (and this could be in small print) the APR for the loan on offer.