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The 5 Best Ways to Get a Loan in the UK

As time goes on, your options for getting a loan are only increasing in number and complexity – as are the laws associated with lending. While having more options is generally a good thing, it can make it hard to decide on the best way to get a loan. When you’re searching for a way that works for you, you have to remember that whether you borrow money online or ask a friend – it’s important to find a way that makes it easy to access the money and to pay your debt back in the end. Luckily for you, we’re here to help you find the best way to get a loan:

1. Credit Unions

Credit unions are like banks owned by their clients, where these client/owners all share something in common (usually a profession or geographical area, such as an electrician credit union). You can apply to join a credit union and open a line of credit with them. Though this could take some time, credit unions are nonprofit so the money they make is passed down to the owners/clients (that’s you if you join!) in the form of good customer service and lower fees.

2. Peer to Peer Lending

Peer to peer lending allows you to lend directly from an individual instead of a financial institution or company. This allows for some similar advantages to working with direct lenders in terms of reduced fees, but you don’t get some of the advantages of working with a trusted company such as the flexibility and customer support.

3. Secured Loans

If you own a valuable piece of property such as a car or a house, getting a secured loan against that piece of property is a good way to get to money with low interest rates. Not everyone has this option though, and by taking it you do run the risk of losing the property if you can’t pay back the loan.

4. Line of Credit From a Bank

While there are some drawbacks to this method, the classic option of a line of credit from your bank is still a good option in certain situations. You require a good credit rating and the application process can be lengthy and complicated compared to borrowing money online, but it is a viable way to get a loan and if it’s successful it can help increase your ability to get a larger loan from that same bank.

5. Online Lenders Are the Best Way to Get a Loan

The easiest and most obvious way to get a loan is through online lenders. There are several direct lenders with websites dedicated to borrowing money online. Online lenders like Fernovo have several significant advantages over any other option for getting a loan. The most obvious reason is the speed and convenience of being able to apply for an instant loan online, as well as the speed and convenience of contacting support of an online business instead of going to a store if you have questions or concerns. As opposed to other big lenders Fernovo’s state of the art technology and business model enable it to significantly reduce the interest rates charged and offer lower rates for its customers.

At the end of the day, there are plenty of ways to get a loan. Some are better than others for different situations, and it’s up to you to figure out what works best for you. Here’s some general advice: find a direct lender, make sure you understand the whole process before you commit, and pick a way that’s most convenient and comfortable for you. When in doubt, it’s hard to go wrong with online lenders in this day and age – the combined cost, speed, and convenience makes it the best way to get a loan.

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