which loan is best?

With so many great deals on the high street deciding which loan is best can be a little bewildering.

Broadly speaking, loans are either secured against personal assets or unsecured.

Secured loans are secured against an asset you own. If you default on the repayments, the lender can seize or request the sale of the asset the loan was secured against to recover the value they lent you.
For example, there are many adverts on TV for debt consolidation services, to reduce your monthly outgoings - watch out for the ones that are secured on something that would cause you significant hassle if it was taken away - such as your home...

Unsecured loans are not secured against anything, and the decision to grant you the loan would have been based on your previous credit history and the lenders belief you would be able to make the repayments.
An unsecured loan carries more risk for the lender as should you default they have no security and as such unsecured loans are usually for lower values.

There are many lenders on the high street that will grant unsecured personal loans from a few hundred to several thousands dependant on your credit history, and typically the more you borrow the lower the interest rate - consider how much you really need, and how long you want to be paying it back for
If the loan is for a shorter term purchase or an item that will depreciate in value quite heavily, such as a car, you should aim to repay it before the item is worthless than the value you are borrowing - otherwise with a 5 year loan in 2 years time you will have a car that is worth half the amount you paid for it and you would potentially still have a significant amount to repay on the loan.

The decision can only be made by you at the time, compare the best interest rates, and check out as many forms of credit as you can before making your decision.

Some of the best low rate personal loans at the time of writing included:

Which Loan is Best?