There are many different types of loan and it is important to make sure you apply for the right one. For example, if you required a loan to pay off other debts you may have, you would take out a debt consolidation loan as it is catered for paying off a large sum of debts, rather than a personal loan.

This site details the many different types of loans you can obtain; personal, car loans, student loan, tenant loans etc. and offers advice and help on what each loan is best suited for.

You are required to look at a few factors when choosing the right loan: How long will it take to repay the debt? What is the amount you would actually pay back (including interest and fees)? How much do you require?

It’s important to look at these factors when choosing a loan so that you are getting the best deal for you. For example, if the amount you need to borrow is less than £1000, you may be better applying for a credit card, as many nowadays come with an introductory 0% interest rate or low interest rate. Also look at the time frame you are looking to pay back the loan in. Is it a year or less? Again a credit card may be a better idea for these circumstances.

Loans are usually paid back over 3-5 years, and you also have to pay back the interest gained on the capital you borrowed. It’s advisable to work out how much you will be paying back in total and make sure you can afford the repayments before applying.

Our guide to loans should help and advise you further on different types of loans you can apply for.