Category: Loan Rates

If you are borrowing money it is wise to compare borrowers to find the best loan rate. This because you will be paying a lot for the privilege of borrowing and you want to make sure that you pay as little as possible. Just a small difference in interest rates can make a big difference to the actual amount that you have to pay back for the loan, particularly if it is being paid back over a long term. This means that it is really important to compare the rates so that you get the best deal that you possibly can.

You need to make sure that you find the best type of loan first of all. Some loans are designed for specific borrowing purposes and some are more suited to small or larger amounts of borrowing. You should be able to work out which type of loan you need depending on what you are borrowing the money for and how much you want to borrow. You may still have some options though and you should compare them based on your requirements and the cost of them.

When comparing the cost it can be tempting just to look at the interest rates and compare them, but you should check other things too. All lenders will charge a setup fee for their loans and these can be quite high so it is worth finding out what these are. It is also worth noting other fees they may charge as well. These could be more hidden in the terms and conditions and will be for things like late payments, early redemption and moving the loan to another lender. You may feel that comparing interest rates is silly because the rates will change (at least on variable rate loans). However, there is no other way to compare them and so it is worth assuming the dearest will stay the dearest etc and if rates do go up, then they will all be likely to rise and if they fall they will all be likely to fall. If you are in any doubt you could always read reviews of that lender and see whether there is any reference to whether they change their rates quickly in respond to base rate changes or not. Obviously you want them to reduce rates quickly but not put them up too hastily, but most lenders will act the other way around!

Searching every lender that you have heard of to look at their loan rates can be difficult. It can take a lot of time and you may not find all lenders. One way to make the job easier is to use a comparison website. This will allow you to compare a selection of sites at once. It will save you having to enter your details on lots of different sites to get quotes and you will be able to see them side by side. This will not include all loan providers, but it can help to narrow it down a bit and will allow you to know what is available to you.

Another way to get a good comparison is to use an independent financial advisor. They will be able to look at all of the options available to you. Not only will they be able to explain to you about all the different loans, but they will compare them for you and show you the ones that give the best rates. They will even be able to read the small print for you and let you know whether there are any hidden fees or charges. You will have to pay them for their work but it could be worth it if they can find you a lender that can offer you a really good deal.

It is important to realise that even if lenders advertise a certain rate they may not offer that rate to you. This can make comparing a lot more difficult. They will advertise their best rates, but they may not offer you that rate if you have a poor credit rating. Most lenders will probably use similar means to decide what rate to offer their customers, so the ones that offer good rates will probably still offer you the best rates even if they are higher than those advertised. However a financial advisor will tell you whether this is true for sure.

So a financial advisor is probably the best way to find the best loan rates. However, if you would rather do the research yourself or not pat a financial advisor then a comparison website will speed things up for you. However, they will not have every lender listed and they may not compare on a like for like basis so that may not be the most accurate way to compare. If you appraoach a lot of lenders for quotes then this will be very time consuming but will ensure that you get all of the information that you need.