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,
5 year loan may cost less but a 10 year loan could meet your needs better. Loans will have a repayment period that suits you.