The right loan for you

As a 'cash' buyer, you're in a strong position to haggle on a new or used car – and that's what you are if you take out a loan, as you'll have the money in the bank.

Personal loans are usually cheaper than loans that car dealers offer. But beware - dealers often quote 'flat rates' which look cheaper. It's the APR you should use to compare.

Tenant loans are for people who may have trouble getting a standard loan as they rent and don't own their own property.

They're ideal for people who are council tenants, private tenants, housing association tenants, or who live with their parents.

Loans are a good way to pay for something that costs a known amount, such as a once-in-a-lifetime holiday. As the loan is a fixed sum, you know exactly what your repayments will be.

Adding a conservatory or an extension will add value to your house. A cheap personal loan is a great way to pay for this. In fact, it may be the only way, as your builder may not take credit cards.

Consolidation loans can help you organise your finances. You pay off your existing debts with just one new loan. So you know exactly how much you pay each month and when.

Consolidation loans can be cheaper if the interest rate is lower, or if your repayments are spread over longer. If you do opt for a longer loan, your total repayments may go up, even if your monthly payments are less.

Homeowner loans are secured against your house (even if you already have a mortgage.)

They can help you reduce monthly outgoings or pay for home improvements. Because of the security, you'll pay a lower interest rate and can borrow more – although remember, your home is at risk if you can't repay the loan for any reason.