Loans? Cheap as credit crunchy chips

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Loans? Cheap as credit crunchy chips

Not very long ago, in a universe not so far from here, loans were as cheap as chips and a ‘credit crunch’ was – er – well, uninvented (a cereal loan?). Anyway that’s all gone now.
Banks are not so matey, loan deals are scarce, rates are higher – it’s almost like it was before. Before what you ask. Don’t.
So, loans are hard to get and they cost more – just when the economic downturn means you might actually need a personal loan to see you through.
If you haven’t checked lately, loan rates have jumped significantly. Not long ago you could expect to pay round 6% or even less. Now, if you have a cleaner-than-clean credit rating, you might find a deal at 7.5%. But that same deal could cost you around 18% if your credit rating is less than good.
The thing to take from this is that you won’t necessarily get the headline rate advertised, so bear it in mind when doing rough calculations of loan costs. Every loan is dependent on the borrower’s circumstances – makes sense to check out your credit rating.
But a personal loan is still usually a better bet than credit card borrowing – especially when your 0% deal has died a death. And it’s often a wise move if you use it to consolidate a range of unmanageable debts.