Low cost loans allow you to borrow up to £25,000 with low rates of interest. You can save money if you repay your loan early too. Loans with low rates are usually available for people with steady incomes, good credit scores and affordability – at Badger Loans, we work with a panel of up to 30 lenders to help you find the lowest cost loan available.
Complete our online application form in less than 2 minutes and receive a provisional quote instantly on the screen. There may be some further checks and you may need to provide proof of your income. If you are successful, you could receive funds within 24 hours.
Types of Low Cost Loans
Personal loans – These are used for personal purchases and everyday expenses such as buying a new car, consolidating debts, a wedding, holiday or similar. This type of loan is usually unsecured so you are not required to put down any form of collateral and your eligibility is based on your income and credit status.
Home improvements – For those looking to extend, amend or renovate their home, you can find low cost loans for home improvements. Perfect for upgrading your kitchen, bathroom or adding an extension to your home. This option is both secured and unsecured, and to get the lowest rate, you may need to secure the loan against your property.
Secured loans – This is where you use some form of collateral such as your property, car, jewellery or similar valuable asset. The amount you can borrow is based on the value of these items and the rates can sometimes be very low (such as a mortgage or car loan). This is because your asset is at risk of being repossessed if you do not keep up with repayments.
Am I Eligible for Low Cost Loans?
- Over 18 years of age
- Full-time UK resident
- Permanent UK address
- Employed with a regular monthly income
- Able to afford monthly repayments
- Valid UK bank account
- Valid UK mobile and email
Unsecured loans – When a loan is unsecured, it means that there is no collateral attached to the loan and you are applying based on your income, affordability and credit score. To access the lowest rates possible, you will be required to have a strong credit score.
How Can I Get Low Cost Loans?
- Be employed
- Have a steady income
- Good credit history
- Avoid outstanding debt
Low cost loans are usually reserved for people with good credit scores. This is because it shows they have successfully paid off other types of loans. These could be credit cards or car finance on time. This gives the lender a lot of confidence that their money is in good hands and the customer will be able to repay on time.
You are required to be in employment and have a stable income, since this will be a natural way for you to pay off your loan every month. If you are on benefits, unemployed or between jobs, this will make the lender think that you are potentially a greater risk to lend to.
You should also avoid having too much outstanding debt or too many loans open. While you may be employed or have a good credit score, if you have a lot of similar loans open it can often be hard to juggle and make you seem less financially in control.
Your application will be viewed by our panel of up to 30 lenders and based on your loan requirements, you will be paired with the lender who can offer you a loan at the lowest rate possible. The better your credit score – the lower your interest rate. Don’t despair if you have some bad credit as our panel has lenders on it who can accommodate for this. Your rate won’t be as good as if you had a perfect credit score but you might still get the loan.
Are There Low Cost Loans for Bad Credit?
Yes, there are low cost loans for people with bad credit and to access this, you will typically need to add some form of collateral or security to your loan. To drive down the cost of your loan, you may need to add some form of collateral such as your car (see logbook loans).
How is Badger Loans Different?
Badger Loans is a licensed, regulated UK broker and we care about helping our customers find low cost loans that are fast, affordable and effective.
Rather than being a direct lender or price comparison site, we have developed an innovative loan matching system that is able to successfully pair you with the lender that is most likely to accept you and offer you the lowest rates.
We do not charge any fees for applying – and we never will. You can simply apply online, 24 hours a day, 7 days a week using our application form and receive a decision in a couple of minutes. If successful, you will be able to confirm the amount you can borrow and how long for and you can usually receive funds to your bank account within 24 hours.