Borrowers, taking out best buy unsecured loans, could be hit by higher interest rates, which would see them paying around £1.2 billion more in interest rates, according to uSwith.com.

Where some loans, have had the interest rates decreasing over time, that of the best buy unsecured loans, have increased, by 1.3 per cent. Reports also indicate that a large number of people - around 1.39 million - who have applied for loans, have had their applications rejected, since the credit crunch began.

Simeon Linstead, Head of Personal Finance at uSwitch.com, said: "The loans market is extremely volatile at the moment and best buy deals have become more expensive over the past 13 months. However, the market is vast and there are still competitive rates for those who take the time to compare the offers available."

He added: "Online loan deals are typically lower than their offline counterparts and in times of volatility in the credit markets and banking world, borrowing on a fixed rate loan can offer borrowers the peace of mind that, both, their interest rate and monthly payments are fixed for the term of the loan."

He concluded: "It has always been the case that consumers borrowing small amounts of money tend to get stung with high APRs. Over the past 13 months, rates on these tiers have seen the biggest hikes. Overall, we wouldn't encourage consumers to take out a loan for a small amount such as £1000. There are other forms of credit available such as the 0 per cent Virgin credit card which will allow consumers to borrow £1,000 at 0 per cent APR for a full 15 months."