It is not enough to just pick a loan that offers the lowest rates. When picking your preferred loan, you have to look for options in the market that provide all-around benefits.
Are you trying to cut existing credit card debts?
There are far better and cheaper options to clear credit card debts other than loans. This is more so the case if the debt is not large and you can try to pay it off it quickly.
Balance transfer deals serve the purpose of shifting the debt on the credit at a special and cheaper price. These rates will almost certainly be more reasonable compared to taking out loans of less than £1,000. The rates are also more affordable even for larger amounts.
A balance transfer is the cheapest option as long as you can transfer to another credit card and pay it off before the 0% deal ends. If you are unable to clear the balance, you should shift the balance to another 0% deal or risk facing the exorbitant interest charges.
If it is not possible for you to clear the debt within the 0% time limit, then your next best option should be a loan. As long as you keep up with the set monthly payments within the period of the loan, your credit card should be cleared.
Use your loyalty to get a better rate
To bag yourself an even lower interest deal when borrowing a loan, you can take advantage of the price guarantees and existing customer deals I you have the Sainsbury Nectar loyalty card.
However, to qualify for the price promise from either Sainsbury or Nationwide, you will have to apply for multiple loans at ago which might leave a mark on and make it harder for your credit to get accepted in future.
Don’t forget the price promise
Sainsbury’s Bank price promise guarantees to beat any deal you get anywhere else that is better than theirs by 0.1%.
To take advantage of the price promise, you have to provide the bank with a written offer from the other lender within 28 days of the standard loan from Sainsbury being approved. The written proposal should have the same name as the loan offered by Sainsbury.
You should not have accepted the standard loan offer from Sainsbury by signing and returning the loan agreement from Sainsbury bank.
The two loans should be comparable on a like-for-like basis. Among the features considered for this include the length of the loan, repayment structure and the fixed amount of the loan. There are other parameters that can be used to determine how similar the two loans are.
Depending on the personal circumstances, credit assessment protocols and other factors, the offer from the other bank can be higher.
Are you Eligible for an Interest-Free Social Security Loan?
Before you go for commercial debt, you should check if there are any government social fund loans available especially if you don’t have any personal savings.
If the loan is for anything that affects the safety of your family or house, you can opt for the crisis loans. These are precisely for disasters or emergencies.
There are also budget loans available which you can use to buy furnishings or school uniforms. They are interest-free for people receiving benefits, and you can borrow as low as £100.