The Race is on for Personal Loans

With the Bank of England's base rate being recently lowered, it has led to a general assumption that personal loan rates with lower accordingly. Surprisingly, for people who have been looking to apply for a personal loan, they have found that rates have actually risen, and are likely to keep rising for the time being. Therefore, now is the best time to look for a loan before loan provider's increase their rates anymore.

As it is still unsure what lies ahead for the UK's economy, banks and loan providers are still increasing loan prices. Within the last two weeks, at least ten major loan providers have increased their headline rates by around 4%, and there are no signs of them slowing down.

With such uncertainty about borrowing, it is more important than ever to keep an eye on your credit rating. The best rate at the moment for somebody wanting to borrow £10,000 is around 7.5%; however this is based on that person having an almost sterling credit report. For those whose credit ratings aren't as good, the best rates at the moment would be between 17 and 18%.

There are things you can do to improve your credit score to enable you to get a better deal on a personal loan, for example; making sure you keep on top of any repayments, cancelling any store cards and credit cards not in use, getting on the electoral roll, and checking your credit report frequently. Its worth checking your credit report frequently, which usually means paying a small fee, however, the fee will prove to be a long term investment as you can see which areas you need to improve in financially.


The best way to find loans with lower rates is to compare them online. By browsing for loans online you are more likely to find a range of personal loans that would suit you and your wallet.