Although it may seem straightforward to find and apply for a cheap £10,000 loan quote there are some pitfalls you need to watch out for along the way.
We compare £10,000 loans and run through the facts you should be aware of in order to get the best deal.
What will your £10,000 loan repayments be?
One of the most important things you should check when you're looking for a 10,000 pound loan is the rate of interest which applies. Unsecured loans for £10,000 with the cheapest rates may well be the ones which you make a beeline for; but you need to investigate further before you proceed so don't automatically assume you will get the best deal.
For example, when a lender advertises a £10,000 loan over 3 years only 51% of its loan customers have to have actually received this rate. As a result, you may not qualify for the cheap rate, and will instead be charged more to borrow the same amount of money.
An individual looking for a £10,000 loan with bad credit history on the other hand may not be eligible at all so it's vital you check the acceptance criteria before you apply. If there's the option to carry out a pre-application check then make use of it because it will give you a better indication of the rate you'll be offered and your chance of being accepted.
Your aim when it comes to taking out a £10,000 loan is to find the deal that costs you least overall.
If you can afford the repayments on a £10,000 loan over 5 years rather than a £10,000 loan over 10 years you should go for it because while the monthly instalment may be cheaper if you eke out the repayments. Spreading repayments over 10 years will mean you pay a lot more overall even though it costs less month by month.
Can I get a £10,000 instant loan?
If you are in need of the cash fast, you may be hoping to find a lender which pays out immediately.
However, the majority of companies who pledge to pay out cash within a matter of minutes are payday lenders who only specialise in providing low value loans.
This doesn't mean that you can't get a speedy loan; many lenders offer the facility to apply online and may even provide an instant decision, especially if you have a good credit history. Some will even transfer the money the same day although they will usually charge you an express loan fee for the privilege.
If you carry out a £10,000 personal loan comparison you will be able to identify the lenders that offer an online option, as well as being able to single out the best deal currently available on the market.
An alternative to taking out a loan for this sum is applying for a credit card with a significant £10,000 limit. You will need a good credit rating to get approved, and a track record in repaying your debts. However, as a flexible means of finance which is easy to repay at the speed you choose, it could be a more convenient option. If you are able to get a competitive life of balance transfer deal or 0% balance transfer offer then you can cut interest rates considerably too.