About the APR

Early settlement costs

If you think you will be able to pay back your loan earlier than the stated agreement, be aware that this can imply an extra cost. Read the terms of the loan to see whether it includes an early settlement penalty. This means that you might end up paying up to two months of interest to compensate the bank for breaking the term agreement.
This penalty is not quoted in the APR because the rate depends on the stated loan period. Nonetheless, over 70 per cent of British borrowers settle their loans earlier. Avoid impulse buying:
 ·        Make sure when you apply for a personal loan that you really will get the best rate.
·        Expect lenders to up-sell you other products. If you are interested, consider carefully their influence on your loan payment.
·        Check the total amount repayable to find out the real interest you will be paying. It will probably be much higher than you expected.
·        Be prepared to spend some time comparing products to find the option that suits you best.
·        Choose a lender who follows good practices (i.e. asks customers if they want to include PPI in their loan).
·        Verify if  early settlement costs are included in the credit agreement and consider whether you will clear the debt before the term. If you want to take a loan that has no early redemption penalties, do so; it is worthwhile.