You might also be asked to pay an early repayment fee, or settlement charge. This will only apply if you decide to pay off your loan before the loan term expires, but lenders can charge the equivalent of up to two months' interest for this. Even if you don't think you'll be able to settle your debt early, it's worth looking for a cheap loan that doesn't charge for early repayment, just in case.

When you're looking for a cheap loan, you probably just think about the interest rate (or APR), but there are other charges to consider that might make a difference. For instance, some lenders charge a loan arrangement fee when you apply or a fee for rapid delivery of the money into your account. Like credit card companies charging an annual fee, this might bring your interest rate down, but you'd be better off looking for a cheap loan with no fees and a low rate.