Knowing how the lenders
operate and how they think is a helpful first step to sourcing
the right loan to suit your circumstances and with the best
terms available. But even within these parameters there will
be different deals on offer from different providers, and using
comparison sites will enable the potential borrower to compare
and contrast the different services available and thereby to
make an informed decision.
This is especially
so bearing in mind that the APR that is being offered, whilst
important, is not the only factor that one needs to take account
of. For instance lenders will often charge an early settlement
fee to borrowers who wish to avail themselves of the option
of settling their balance before the final payment is due. This
amount will vary from lender to lender and is an important factor
for any potential borrower for whom an early settlement is likely
to be an option.
Insurance is also
a factor. In spite of all the recent controversies about mis-sold
insurance there will be some who do wish to insure their loans
against unforeseen circumstances and once again terms are likely
to differ, both in respect of premiums and what is contained
in the small print.
Lastly there may
also be “start up fees” involved which, when taken
into consideration, may have the effect of distorting the effective
All in all the importance
of obtaining comparison loans advice cannot be overstated when
it is important to find the best deal around.