It’s time to start opening up those 2021 diaries…tentatively.

With Boris’ roadmap potentially offering up a summer of pubs, music festivals, staycations…and, whisper it quietly, holidays abroad; we finally have a few reasons to be optimistic. Of course, all this celebrating isn’t going to come cheap – who knows how many rearranged birthdays, christenings and weddings we’ll be having to go to?

If you’re frantically hammering away at a calculator, wondering ‘How am I going to afford all this?’, then borrowing money to help tide you over may be an option worth exploring. And tracking down the best loan rates is where you need to start.

Finding the best loan rates – what you need to know

When you are looking to take out a loan, finding the one that best fits your circumstances is vitally important. With so much financial jargon flying about, and some lenders less than forward when it comes to explaining rates, it can be an extremely confusing time for borrowers. The last thing you want is to end up paying back a lot more than you should be.

How many times have you sat there wondering what the difference is between the terms ‘interest rate’, ‘APR’ and ‘representative APR’. It may not be hugely exciting, but understanding the difference is crucial in determining the best loan rates for you. While the interest rate on loans determines the cost of borrowing money, it often doesn’t show the full picture.

APR, or annual percentage rate, is the most effective figure when comparing loans. It’s the official rate used to help you understand the cost of borrowing as it takes into account the interest rate and any additional fees. These fees can vary widely depending on the lender, but the APR – and lenders have to tell you the exact figure before you sign a credit agreement – is the rate you will pay.

Be careful when you see ‘representative’ or ‘typical’ APR advertised. Lenders are allowed to advertise this APR when at least 51% of their customers get that rate or lower. However, this means that almost half the people who are approved for the loan or credit may not be eligible for the advertised rate…so will end up with a higher interest rate, and higher repayments. These are generally the people with lower credit scores.

No hidden fees with Pennine Community Credit Union

PCCU loans come without any hidden fees or extra charges. We don’t even charge set-up fees. What you see is what you pay. We don’t offer different interest rates on loans purely based on your credit history, and you will never be charged more or less for borrowing money because of a credit score. PCCU’s interest is charged on your decreasing loan balance, so as it reduces, the amount of interest you pay reduces. This means the quicker you choose to repay your loan the less interest you pay.

We can’t guarantee the best loan deals, but we can guarantee you friendly advice and a free quote. Give one of our staff a ring today, ask for a free loan quotation, and compare it to other lenders. You can never do too much research when it comes to loans…or holidays.