• If you are looking to borrow money,check out the most competitive unsecured loans around here. Money facts says that half of all lenders offering personal loans have changed their rates since the beginning of the year. Michelle Slade said, “It’s not only mortgage rates that continue to increase, so too have the rates and monthly repayments on personal loans.” Black Horse has increased rates for some smaller loans by an eyewatering and NatWest has upped rates on larger loans over five years. Barclaycard , Lombard Direct , NatWest and Tesco Personal Finance also increased their rates in the last few weeks.

• Check your credit record, credit reference, credit file, credit score with CreditExpert from Experian. Some providers had introduced double-digit increases and some have actually reduced the interest rate they charge. From the beginning of the year , Moneyback Bank, Britannia Building Society, Yorkshire Bank and Clydesdale Bank have all reduced selected loans rates. Getting the right deal can really matter when you are looking for motor finance. By research from Sainsbury’s Bank, nearly a quarter of the total amount spent by car purchasers on a new vehicle comes from loans. Customers should be equally choosy about where they borrow – and finance available on the forecourt will rarely be the best option. Steven Baillie said, “By our latest research, the number of people looking to buy a brand new car has dropped by more than half a million on the previous six months. Clearly people are more concerned about their finances and looking to finance their purchase through a loan.

• So how do you choose a personal loan? Go for a Shop around. Don’t just assume your bank , your starting point should be Moneyextra’s loans tools and calculators . You have to make sure that you do not apply for more than one loan at a time because, if you are doing so, it will harm your record for the future.

• Don’t be attract by the headline rate. Only few lenders offer one-size-fits-all loans most lenders use “risk-based pricing” which means the rate you are offered will depend on your credit score. For example, if yourpersonalloan.co.uk, part of the Co-operative Bank, and Moneyback Bank, part of Alliance & Leicester, offers loans at an extremely attractive rate, but both banks will look at your credit rating before determining the rate .

• Check the rate which is includes. The rate which is eventually included will be the APR (annualised percentage rate) , a way of working out the total charge for credit. The APR does not tell the complete story, and it won’t include all the potential charges you may incur. If you want to be able to compare the price of a loan, you have to make sure that you are asking for the figure for the total cost of the loan over the full period.

• Make sure, how much to borrow. While you should aim to borrow no more than you need, you have to see the interest rates which are usually higher for smaller loans.For example ,Yourpersonalloan.co.uk could charge you just 6.9% rate for the latter deal if you met its criteria.

• Consider the term. Repay the loan as quickly as possible (although watch out for early repayment charges). Some lenders often charge lower interest rates if you pay back the loan over a longer period. This makes the loan more affordable on a monthly basis, but remember that the long period ,the more interest you will pay in the end.

• Insurance for payment protection . Suppose to meet your loan repayments if you are unable to do so because of accident, sickness or redundancy. So only you can decide that you have a need of this type of insurance. This type of insurance generally won’t cover the self-employed. Don’t take any type of insurance with your lender without checking if you could get a better deal with an independent provider. Sure that your loan and credit card payments with in case you fall ill, suffer an accident or lose your job.

• If you change your mind ,What will happen ? Before sign up for the loan in the lender’s office,(Premises Agreement), there will be a cooling-off period (two weeks) in which you can cancel the agreement without charge.