Compare Loans & How to Run a Loan Comparison

By | February 28, 2015

Why bother with a loan comparison?

If you are thinking about getting a loan it can be all too easy to opt for the first one you find. However it pays to slow down a little. If you take some time to perform a loan comparison youself, you will get a far better idea of which loan might be ideal for you.

With personal loans for bad credit, secured loans, unsecured loans, car loans and much else besides, it is worth understanding which loan will suit you and how to compare like-for-like loans in order to find the best one.

The advantages of an interest rate comparison

Assuming you don’t want to pay any more in interest than is absolutely necessary, an interest rate comparison will help make sure this is the case. Rates can sometimes be confusing depending on how they are displayed. However they should all offer you a percentage APR, so if you compare these figures you will get an accurate idea of how much a particular loan will cost you.

The main advantage is this can save you a considerable amount over time. A lower interest rate can make your monthly repayments more manageable when comparing two like-for-like loans over the same period of time. As such you can ensure you are getting the best deal on the market today.

How to perform a loan comparison

When you know which loan you want, how much you want to borrow and how long for, it becomes far easier to go through the stages of a loan comparison. After all it makes little sense to compare a loan for £10,000 paid back at 3.7% over five years to a loan for £7,500 paid back at 4.2% over three years. They’re two entirely different beasts. It is only by settling on an amount and a period of time that you can perform a proper comparison.

It is pretty easy to do a loan comparison online nowadays. All you have to do is key in the amount you want to borrow and how long you want to pay it back over, and you should get all the relevant deals and their interest rates. It is worth remembering the interest rates are likely to be representative. This means you may or may not get the rate given depending on your credit history. You might get a better deal or you might get a higher rate. You won’t know until you ask.

Only apply for a loan once you have done your research

As you can see, the power of research can make a huge difference to the loan you end up with and how much you pay for the privilege of having it. However, by running a loan comparison you will almost certainly get a better deal than if you went with the first offer that came your way. By comparing the deals that are available you can gain a much better understanding of what the loans market has in store for you today – and how much it might cost to get one.

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