Cheap Loan Deals Are Not A Cheap Anymore

Online, September 8, 2010 (Newswire.com) - Cheap credit cards are devastating the presence of personal loans with its benefits and facilities.
The rates have reached sky high as 12.6 % for a £5000 loan. This is the highest since 2000, in spite the base rate being low all the time.

To make things worse for the borrower, lenders personal pricing methods make a loan all the more expensive with hidden costs. This happens especially when they have a poor credit score. The rates are sometimes not the same as advertized.

Specialized experts recommend that a low cost credit card is a better method to avail finance.

Barclaycards simplicity credit card, now charge you only a variable 6.8% which is £360 cheaper. The current monthly repayments on £5000 over the span of 3 years will be £ 155 instead of £165 which make this all the more cheaper than a personal loan.

'Low-rate credit cards are simple. There is no interest-free period, no reward scheme and no other features of the card - just a low interest rate.' This is said by Michelle Slade of the website Money Facts.

The Halifax Easy Rate MasterCard offers you a rate of 6.9% and the Co-op's Platinum Tracker Visa offer us with 7.7% rate which comes extra £2 fee. The interest rate of The Halifax Easy Rate MasterCard is flexible and keeps changing the base rate.

The cheapest rate you can avail on a £5000 personal loan is with Tesco, which is 7.8%. They check your credit score and people with bad credit are charged rate as high as 15.9%.

Even Sainsbury will offer you rates ranging from 7.8% and 18.8%.

Slade has advised us by saying that 'You could get a credit card with 0% for 13 months and then transfer the balance to a low cost card.'