You may have already decided how much money you want to borrow, the size of the 5 year loan is important however, the period of time you have the loan for is equally if not more important. This is because every year you have the loan means a year of added interest on the total repayment amount, by choosing one of the 5 year loans you could reduce the APR (annual percentage rate) by going with a lender who specialises in 5 year term loans.
Cheap 5 year loans for people with bad credit can be used for any purpose including the most common reason, debt consolidation. Whether you are looking for a bad credit unsecured loan or a secured loan for bad credit you will want to keep the loan period as short as possible. Aside from the fact the interest will be kept to a minimum, you will also be more comfortable living with the debt knowing the year the loan will be paid off by.
If you have a bad credit rating you may find it difficult to obtain finance that goes over the 5 year loan term. By taking out such a loan and repaying it on time will have a positive effect on your credit rating and lenders will be able to offer you far better UK loan deals in the future.
You can choose your repayment period,
10 year loan may cost less but a 5 year loan could meet your needs better. Loans will have a repayment period that suits you.