Of course, it makes sense to get the cheapest personal loan that you can find. Here are five steps to finding and getting a cheap personal loan for your needs.

1.Be strategic.

Maximise your chances of being accepted for a personal loan without bunging up your credit with excess credit applications. Before you start applying for loans, get hold of your credit report or your credit score. Knowing where you stand on the credit ladder will help you single out those personal loan products that are aimed at your segment of the loan market.

2.Shop around both online and off to find the best loans.

Online, you can take advantage of price comparison sites to check the details on many different personal loans at once. Use the comparison sites as a starting point to help you sort things out - then follow links back to the lending company's own web site to do further research. Offline, check with your local high street lenders to find out what terms and rates are being offered.

3.Check with a trusted lender.

If you already have done business with a lender, or are doing business with a bank or building society, check in with them to see what they can offer you. In many cases, people with dodgy credit will get better consideration from finance companies who know them already. This is step 3 and not step 1 for a reason, though. When you've checked other avenues first, you'll have a gauge to measure the terms you're offered to be sure that the loan is worth taking.

4.Take advantage of the lender's greed.

There are ways to make your application more attractive to a lender without falsifying any information. For instance, lenders make a great deal of money on payment protection insurance (PPI), so they tend to look more favorably at loans when the borrower requests it. It's far more advantageous for you, on the other hand, to provide your own standalone PPI. Take advantage of the situation by requesting a loan quote with PPI included. When you receive the paperwork to sign, return it unsigned with a request for a quote without the PPI included. Since they've already approved your loan, it will be difficult for them to justify denying your amended application. Do be sure to act quickly, however, or it could cost you.

5.Don't judge by APR.

The APR - annual percentage rate - is the figure that you're most likely to see banded around as a loan comparison tool. The truth is that it's easy for banks to manipulate the APR and make the loan seem less expensive than it really is. Instead, use the total amount repayable as a gauge if your biggest concern is how much the loan will cost you overall, and the monthly payment if you need to be wary of your monthly budget.