Personal loans are one of the most flexible borrowing tools available to UK consumers. Whether you need funds for home improvements, a car purchase, or to consolidate existing debts, a personal loan offers a fixed repayment schedule and a clear end date. The key to getting the best deal is comparing the Annual Percentage Rate (APR) across multiple lenders before committing.
The rate you are offered will depend heavily on your credit score and financial history. Lenders are only required to offer the advertised representative APR to 51% of successful applicants, meaning many borrowers receive a higher rate. Using eligibility checkers before applying is the best way to find the rate you are actually likely to receive.
Best for Fair Credit
#3 Likely Loans
Designed for borrowers with less-than-perfect credit
★★★★★
- ✓Representative APR from 29.9%
- ✓Borrow £500 to £5,000
- ✓No guarantor required
- ✓Soft search eligibility check
- ✓Reports to credit agencies to help rebuild score
Likely Loans is one of the most reputable lenders for consumers with a fair or limited credit history. While the rates are higher than mainstream lenders, they are significantly lower than payday loan alternatives and the regular repayments help rebuild your credit profile.
Check Likely Loans Rate →
Best for Debt Consolidation
#4 Freedom Finance
Specialist broker for debt consolidation loans
★★★★★
- ✓Searches 40+ lenders simultaneously
- ✓Loans from £1,000 to £150,000
- ✓Secured and unsecured options
- ✓Soft search comparison
- ✓Specialist in non-standard credit profiles
Freedom Finance is a broker rather than a direct lender, which means they search a panel of over 40 lenders to find the best rate for your specific circumstances. This is particularly valuable if you have a complex credit history or need a larger loan for debt consolidation.
Compare via Freedom Finance →
Check Your Credit Score First
Before applying for any product, check your credit score to see which deals you are most likely to be accepted for.
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