Submitted by: Peter Kenny

When you need to borrow money for whatever reason you should try to get as cheap a loan as possible. This means paying very little or no interest either for the life of the loan or for a limited time period. Although you may think that it is not possible to get a loan at no interest, it is possible with some car dealerships. You can take out a new vehicle through the company and every one of your payments will be applied to the balance of the loan until it is paid in full. You may also find car dealerships that will approve you for a loan at a very low interest rate. Either of these types of loans will help you save money when you buy a new car. Buying a used car, though, is not as cheap because the interest rate on these car loans are higher.

If you want to borrow a small amount of money, less than 1,000, it will be difficult to get this amount in the form of a standard loan. You are better off using a credit card for this amount and paying it off as soon as possible to save on the high interest rates. You can also apply for a zero% credit card and pay off the balance before the introductory period expires so that you don t have to pay any interest charges at all.


If you have an excellent credit rating, check out the rate your current bank may be able to offer you. You don t have to apply for the loan. Just ask what the rate would be for the amount of money you wish to borrow. Then you can compare the rates offered by online lenders to see if this is cheaper or more expensive. Some banks advertise cheap rates for their best customers and if you see such an ad, it could well be worth you while to call and inquire about it.

Many of the online lenders are able to give you cheap loans because of the fewer expenses they have. The fact that you apply online saves them money, which they then pass on to you in the form of a cheaper loan.

Adding payment protection insurance to your loan may be good for the lender because of the decreased risk of not being paid in full should you default on an unsecured loan. However, this adds to the cost of the loan, so you should look for the cheapest form of uninsured loan for your needs. Whether you need a loan to take a vacation or to make improvements to your home, these loans are available for smaller amounts of loans. If you need to borrow a larger amount, the cheapest option may be to look for a home equity loan. In this case your home is the collateral for the loan, which is a secured loan. Since the lender sees that you are willing to risk losing your home should you default on the payments, you are very likely to receive a low interest loan.

About the Author: Peter Kenny has been writing financial articles for 10 years and is a writer for The Thrifty Scot, please visit us at

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