Why a slightly higher personal loan APR might be worth it
Written by
Monday 9th June 2025
When comparing personal loans, most people focus on one thing: the APR. And it makes sense - no one wants to pay more interest than necessary. But here’s something many borrowers overlook: a slightly higher APR on a personal loan often doesn’t change your monthly repayments by much. And in some cases, it could actually mean you’re getting more value overall.
What does a higher APR really mean?
Let’s look at an example to see the real difference in repayments.
Imagine you're borrowing £10,000 over five years. Here’s how your monthly payments would look with two different personal loan rates:
- 5.9% APR: £193.04 per month
- 6.5% APR: £195.65 per month
That’s a difference of just £2.61 per month.
Over the full loan term, you’d pay an extra £156.60 - about the cost of one takeaway per month. For many borrowers, that’s a small trade-off if it means faster service, better flexibility, or more peace of mind.
Why some people choose a higher APR loan
A lower rate might seem like the best deal, but the cheapest personal loan isn’t always the best personal loan. Here’s what a slightly higher APR could offer:
- Faster approval process, helping you move forward sooner
- Supportive customer service, when you have questions or need help
- Flexible repayment options, to adapt with your finances
- A smoother, stress-free application experience
Think of it like comparing two mechanics. One is the cheapest - but has poor reviews. The other costs a little more, but is known for being honest, quick, and reliable. Which would you trust with your car? It’s the same with your finances.
What to look for when comparing personal loan rates
When you compare personal loans, focus on more than just the interest rate. Consider:
- Is the process clear and easy to follow?
- Are there any hidden fees or confusing terms?
- Can you manage your repayments online or change them if needed?
- Will you have someone to talk to if you need support?
Final thought: is a low APR worth it if the service isn’t?
It’s tempting to chase the lowest APR you see online. But a slightly higher personal loan APR could actually be the smarter choice - if it means getting faster, clearer, and more flexible service.
In the end, a great loan isn’t just about numbers. It’s about how you feel during the process - and that peace of mind might be worth a few extra pounds a month.
At Novuna Personal Finance, we offer more than competitive personal loan APRs - we offer a trusted experience. We keep things simple, transparent, and supportive from start to finish.
Written by
Anna Stacey is a skilled content writer based in Lincolnshire, specialising in the financial services industry. With over four years of experience in the digital landscape, she has an aptitude for crafting informative and engaging content that addresses a range of customer needs. Spanning diverse topics, from finance and lending to broader digital marketing trends, Anna is committed to delivering customer-centric content that not only educates but also empowers readers to make informed decisions.
