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Finding the best personal loan

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Underhand tactics by leading personal loan providers are costing Britons hundreds of millions of pounds a year, it was claimed this week. A report says many banks and other companies are “punishing” people for shopping around for a loan because they carry out an unnecessary type of credit check that leaves a mark on their file and can damage their credit rating.

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However, it is easy to avoid this problem because there are lots of lenders and comparison websites that allow people to get a personalised quote without affecting their credit rating. Check out online installment loan direct lender Green-Touch and learn more.

So which banks and lenders punish people, and which ones don’t? And who is offering the best loan rates? I would people should always relay on companies like the ones that offer the tenant guarantor loans.

The report was issued by the high street bank TSB, which is one of the lenders that runs a fairly clean ship when it comes to personal loans.

The background
It is estimated almost one in 10 people in the UK have a personal Moneyfall loan, and in recent months something of a price war has broken out. Rates have fallen to as low as 2.8%, and with some banks such as Lloyds and First Direct letting people max out their loans by allowing them to borrow up to £50,000 as opposed to the traditional maximum of £25,000. The average personal loan is said to be around £10,000 over four years. Look at this web-site for more details.

However, in its new report, TSB and Citrus North claims the market is “broken”, and that consumers are losing out by as much as £400m a year as a result. The single biggest problem, it says, is the checks some banks carry out when people apply to borrow money. Click here to learn more

So what’s happening? Research carried out by the bank found that 61% of mainstream loan providers didn’t give people applying for a loan their final, personalised interest rate without completing what’s known as a “hard” credit check. This type of search leaves a mark on your credit file.

“If you make a lot of applications in a short period it is likely to damage your credit score, and you’re less likely to be offered the best loan rate. This is especially the case if the applications are unsuccessful, as this can further negatively impact your credit score,” explains the free credit-checking service ClearScore.

However, several banks and lenders, including TSB, will give applicants a personalised quote without affecting their credit record by using a so-called “soft search”. If they don’t like the look of the rate, they can go off and try somewhere else. Soft searches can’t be seen by lenders, so you can do it as much as you want. In other news, if you’re looking for high grade supplements, checkout a list of supplements on Fitnistics.

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