Borrowing money is a fact of life for most people whether it's a large purchase such as buying a new home, or a smaller splurge such as a new sofa. Whether £5,000 or £15,000 loan interest rates make a massive difference to the cost.
Whilst it's always important to get a good deal, if you are looking to borrow a larger amount, such as a 15,000 pound loan, getting a competitive rate is particularly important.
We take a look at how to compare the cheapest loans for £15,000 and how to work out which is the best deal for you.
Working out £15,000 loan repayments
When you're comparing loans the Representative APR will give you an indication of the interest rate you could get.
The higher the APR, the more interest you will be paying and the more expensive the loan will be. To get the best loan deals for £15,000 you need to look for the lowest APR for this amount. However, Representative APRs aren't guaranteed for everyone; intead it's the rate that at least 51% of borrowers get.
So in order to work out exactly how much your borrowing will cost, you will need a £15,000 loan calculator. This will tell you in monetary terms how much the repayments will be each month.
If a low monthly repayment is your priority, you may want to stretch a 15,000 loan over 10 years as this will keep the instalments low. If you can afford to pay a bit more each month, you may want to clear your debt more quickly by taking out either a £15,000 loan over 5 years or even a £15,000 loan over 3 years.
Be aware however, that even though a loan over a longer period may mean cheaper monthly instalments, the overall cost will be more expensive. For this reason alone it's a good idea to spread your repayments over the shortest period possible.
If you carry out a cheap £15000 loans comparison you will be able to not only compare the £15000 loan repayments but also look at the total end cost. This is also known as the TAR – the total amount repayable – and will show you how much you will have to pay back in total by the end of the term.
Where to find the best £15,000 personal loans
One thing worth bearing in mind is your credit rating as this will have a bearing on the overall cost and the interest rate you are charged.
Most lenders will indicate the minimum credit rating they'll accept so it's not worth applying if you don't fit the bill. Many now offer a pre application approval check which will indicate your likelihood of getting accepted. If you get offered this option take it because it should give you an idea of whether it's worth applying.
The best way to source the most competitive deal for you is to carry out a cheap £15,000 loans comparison. This will help you to compare best £15,000 loan payments to find one where the repayment terms fits your needs but the total amount repayment is still as low as possible.