Purple Loans

www.purpleloans.com

Purple loans promises to cater for everyone including the self-employed and people with CCJs or bad credit ratings. It's a good idea to look at the small print on the Purple loans site, though: APRs aren't as attractive as you might expect from the headline figures.

About Purple Loans

Purple Loans promises to lend £3,000 to £100,000 with an APR of just 7.8%, but the small print tells a different story: that APR is variable and the site's own example suggests that a homeowner borrowing £8,000 over 10 years will be offered an APR of 10.7% variable. That's nearly five grand in interest – and if interest rates go up, then so will the payments.

One of the key selling points of Purple Loans is that it's willing to lend money to bad risks – people with CCJs or bad credit ratings, self-employed people and so on. However, you might pay for the privilege: as the small print notes, "an administration charge of between 0-10% of the loan amount may be charged on some problem cases."

That doesn't necessarily mean that Purple Loans will charge you a massive admin fee and huge APR, but it does suggest that the claimed 7.8% rate isn't going to be offered to many customers. And of course, 7.8% variable is still higher than the 6.9% fixed that you can get from other lenders.

loans.org.uk helps you find the best loans companies for your specific needs, and gives you background information on the various types of loans available in our loans articles.