When Is The Best Time To Take Out A Loan – the short answer is right now!
Interest rates have never been cheaper than they are right now and if your need for a new loan coincides, then just go for it.
So, when is the best time to take out a loan, it is today, before interest rates start going up again too high.
Find out when is the best time to take out a loan
There are an increasing number of companies coming back into the financial market after the recent recession, which is creating some competition, which is always good for consumers.
The Bank of England base rate is still low, but there is increasing speculation that it will start to increase again.
With low base rates and “cheap” money around, it is definitely a good time to borrow money, providing you can get approved for a new loan.
So, what type of loan is best?
The really depends on what you want the loan for, the amount of the loan and your individual financial circumstances.
Payday loans are still popular for getting cash for urgent purchases and some loan companies will lend up to 2,000 now and allow you to repay it back up to 18 months in some circumstances. This is a big improvement on the original payday loans that had to be repaid in total on your next payday, or else all kinds of extra fees and charges were applied.
Personal unsecured loans are available too and some companies can lend up to 25,000, with repayment up to 60 months or 5 years. Secured loans are also there for property owners that have equity and loan amounts can go up into the hundreds of thousands, depending on equity , income, etc.
Then there are the ever increasing guarantor loans. Guarantor loan companies used to insist on your guarantor having to be a home owner, but more and more will accept non-home owners and allow friends and family too.
You can borrow up to 10,000 with some guarantor loan companies, although most lend up to 5,000.
Do You Have Bad Credit?
There are now lenders for all of the above loans types that accept applications from people with bad credit for payday loans, personal unsecured loans, secured loans and guarantor loans.
The Best Interest Rate?
How long is a piece of string! You need to shop around to see what rates are available to be honest. We advertise companies on this website that can provide all of these loan types, even for people with bad credit.
If you do have bad credit, you must expect to pay a higher interest rate than a person who does not have bad credit. The best advice we can give at the moment is to make sure your new loan has a fixed interest rate.
This means that should interest rates start to rise (and they will), your monthly payments will remain the same throughout the repayment period of the loan. When Is The Best Time To Take Out A Loan? Right Now!
See also best loan rates UK.