Cheap Loans Available In The UK – No Fees & Instant Decisions.

 

For the money savvy amongst us, shopping for a cheap loan makes perfect sense. However, simply searching for a ‘cheap loan’ could lead you to a dead end, as the final cost of your loan is dependent on a range of factors. In fact, if you’ve searched for a cheap loan you may have made a mistake, as really, the best loan for you may not revolve around cost.

What is a cheap loan?

When someone refers to a ‘cheap loan’, they typically mean a situation whereby a lender charges a lower than average interest rate for credit. These are usually granted when a borrower has a good credit history.

A low interest rate often means you have to borrow more to be able to benefit from it, and this can result in repaying a larger sum overall if you borrow over a long period of time. Ideally, cheap loans would be a quick short-term solution to bridge the gap until your next payday.

However, if it’s an inexpensive short-term loan that you want, searching for a cheap loan may not help you find the type of credit you’re looking for.

What to look out for with loans

As with any loan, it’s essential you do your research before applying. It’s understandable that you want to find the cheapest loan available, but sometimes what might appear at first glance to be a cheap loan can come with higher costs overall and may not offer you all the features and flexibility you desire. It’s important to look for a loan that suits your circumstances as well as your budget – as different lenders may charge the same interest rates, but will likely offer different benefits that influence your choice.

At Sunny we offer a range of repayment options including flexible overpayments, as well as the ability to make extra payments whenever you like, giving you the freedom to pay your loan off sooner.

If you’re trying to find a loan that’s more affordable, then it’s definitely worth doing some research. Comparing APRs (annual percentage rates) can be a useful benchmark to understand how the overall cost varies between lenders. However, it’s important to keep in mind that APRs are a representation of the cost of borrowing over a year and not for a short period, which is generally between one and six months. This means that the percentage you see is not the percentage you’ll pay over a shorter period. Our loan calculator can help you to see the amount repayable on a Sunny loan before you apply, split between the sum borrowed and interest that will accrue over the time period you choose. The table above shows how we compare with some other short term loan companies in representative APR, late repayment fees and your ability to change your payment schedule.

How to get a more affordable loan

In general, the cost of the loan you take out – or your ability to get a loan at all – is dependent on your credit history, how much you need to borrow and how long you intend to borrow for. To improve your chances of obtaining loan in the future, you should aim to make all your repayments on time and repay the sum you have borrowed in its entirety.

If you ever find yourself struggling to make repayments on a sunny loan, then please get in touch with our team on 0800 7315 432 or by emailing repayments@sunny.co.uk. At Sunny we aim to do everything we can to help get our customers back on track, and as such don’t charge fees for late or missed payments.