Consumers should use continued rate cuts to their advantage
February 2, 2011
Consumers who may be looking for a personal loan are being advised to use personal loan rate cuts to their advantage by ensuring that they compare the options open to them and try to get the best deal. There are a number of lenders, including banks and even supermarkets, that have cut the interest rates on some of their mid-range loans, and this means that consumers could potentially get a far better deal on their borrowing.
At this time of year there are often many people who are thinking about taking out a personal loan. In some cases this is so that they can consolidate their existing debts, including debt that has been accrued on credit cards and overdrafts over the Christmas period. Whilst the Bank of England base rate is still at its all time low of just 0.5 percent the rates being charged on personal loans have been rising.
However, over recent weeks a price war on personal loans appears to have erupted amongst lenders, and this means that those with good credit could find that they are able to cut the amount that they have to pay for their borrowing. The price war has made it essential for people that want to get a good deal on their borrowing to compare a range of loans and lenders before making any commitment. This is something that they can do easily and quickly online.
One industry official said: “With interest rates on some personal loans having come down now could be the ideal time to start looking for a loan. However, consumers need to bear in mind that rates may start to rise again, especially if the bank base rate increases over the next couple of months.”
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