With so many products available, there really is a loan to suit most needs. Whereas a mortgage can only be used to purchase a property, a loan can be used to finance almost anything. So which loan is best for you?

Bad Credit History

Whatever your credit history, it is usually possible to obtain loan. But if you do have a record of defaults and county court judgements, then you should expect to pay more in terms of interest rates and fees. You will also find it easier to obtain a secured, rather than an unsecured, loan if you have an adverse credit history.

Personal Loan

A personal loan is a catch-all term for any loan that is being obtained for a personal, rather than commercial, reason. shopping around before you find one that suits you. Lenders see this kind of loan as a greater risk and will charge a higher rate of interest accordingly.

Car Loans

Although a generic personal loan can be used to purchase a car, it is worth considering specialist car finance packages.

These loans are offered by banks, brokers and car dealers. Both secured and unsecured options are available, although it can be difficult to obtain an unsecured loan for sums greater than £15,000.

As always, make sure you shop around by comparing the APR of different options. Don-t just accept the package offered by your car dealer, as it may not be the most competitive.

Many dealers will also offer you the option to lease a car, or to take out a hire purchase plan, which is essentially just another type of loan. If you opt for either of these, bear in mind that the actual ownership of the car remains with the dealer until the car is paid for in full.

Bridging Loan

Sometimes house buyers need to borrow additional money if they have to purchase a new house before finding a buyer for their old property. Loans designed for this purpose are known as bridging loans.

With a bridging loan, a large sum of money is borrowed for a relatively short period of time. Lenders appreciate that this money is usually needed quickly, so most bridging loans are completed within 24 hours.

Unfortunately, as the loans are required quickly, most borrowers do not have time to shop around. Lenders take advantage of this by charging high rates of interest as well as an administration fee of around 1% - 1.5% of the sum borrowed.

If you are fortunate, the sale of your old property will go through quickly and you will only require a bridging loan for a very short period. It is possible, however, that the sale of your old property will not go through, which may mean that you will have to sell your new home in order to repay the bridging loan.

Student Loans

Funding further and higher education can be an expensive business, given that there are now charges for fees and far fewer grants.

Fortunately, the government as provided a cost-effective way for students to borrow money via the Student Loan Company. A Student Loan is offered at a favourable rate of interest which is linked to the underlying rate of inflation. The interest is applied to your loan as soon as you receive your first instalment.

The repayment terms are flexible too - you only start to pay once your income reaches a certain level.

And that-s your lot!