UpMyStreet guides: finding the best personal loan

If you're thinking about borrowing money, taking out a personal loan is one possibility to consider. Firstly, you need to make sure that this is the best loan for you. Find out more about this type of loan and how to get the best personal loan on the market.

What is a personal loan?

A personal loan, also known as an unsecured loan, is a lump sum borrowed against your personal credit rating, rather than against the value of your property like a secured loan. In return, you make monthly repayments that include interest. Personal loans best suit people who are looking to borrow typically no more than 20k, and want to pay it back over a short time, usually between 5-8 years.

Is a personal loan best for me?

Because personal loans are not secured against your property, they involve less risk than secured loans, where you could lose your home if you fail to meet your monthly payments. If you don't want to borrow large sums of money and want a short-term repayment period, a personal loan can be the most appropriate option. Personal loans are best suited to individuals with good credit as most lenders use a system of credit scoring to decide how much money you can borrow. Applying for a personal loan will be recorded on your credit rating, so it's best to apply for a loan that's realistic for your circumstances. You can view your credit history with a free credit report from Experian.

Once you've decided that a personal loan is the right option for you, the next challenge is to find the best personal loan provider to suit your circumstances:

Who provides personal loans?

There's been a real explosion of loan providers in the market recently, making it difficult to decide which offer the best personal loans on the market. While banks and building societies are the more traditional lenders, you can also take out personal loans with online banks, supermarkets, or even the post office. Don't miss out on the best personal loan for you by comparing loan providers using an impartial comparison service.

Where can I find the best personal loan?

UpMyStreet's comparison service allows you to compare loan providers and find the best personal loan you can. The process is quick and easy. When you go to compare loans, all you need to do is enter your requirements, including how much you want to borrow, the repayment period and anything that may affect your credit history. You will then be able to find the best personal loan available that matches your criteria.

› Find the best personal loan