Act Carefully When Comparing Loans - Key Points To Consider

 


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It was not such a long time ago that we could only really compare the costs of different loans in a similar fashion to how we woud compare different items of clothing, i. e. by going window shopping and checking out the signs inside the High Street banks.

All that has changed these days, however, and the internet has vastly speeded up not just the way in which we can make comparisons but has also increased the number of lenders from whom we can choose to shop with.

There is a whole raft of loans comparison sites to choose from and, with just a couple of clicks of a mouse, we can compare the approximate costs of a loan in an instant.

However, it is always worth considering that, when we compare loans, we have to compare like for like which means that the APR, the main factor we tend to look at when making comparisons, is just one part of the process. It is the add-ons such as arrangement fees, payment protection insurance, early resettlement penalties etc. that can soon add up and what we thought was the cheapest loan when we were making our comparisons can soon turn into anything but cheap. And, that ‘attractive’ APR? Well, we need to establish if we qualify for that rate first of all.

Comparing the APR on a like for like loan product is usually a good place to start. It can, at least, whittle down the number of lenders you wish to investigate but once you’ve done your comparisons and selected a handful of ‘possibles’ then comes the time to investigate and to discover what the bottom line is going to be. This is when your comparisons truly start taking shape. You need to account for all the add-ons and any hidden costs you might incur with each lender, add up the total figures over the duration of the loan term and then compare everything on a like for like basis. This is the only way you can truly compare loans products and it can take some time and effort.

If you haven’t got the time, you might want to consider letting an independent finance broker do all the legwork for you. Not only will they have access to lenders offering the cheapest deals around, some of which won’t be available to you on the comparison sites, but the broker will only compare loans according to your own individual requirements. In other words, the quotes they obtain for you will be tailor made to suit your own specific circumstances. As a reputable broker won’t charge you a penny for doing this as they derive their income from the lenders directly in the form of commission, they are often the best resource when it comes to comparing loans products like for like.

Leonard McAllister is a educated advisor on money lending options. He has helped hundreds of people compare loans to find a better deal. Further information can be found on his website http://www.widerchoice.co.uk

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