There are many lenders available all offering all sorts of different loans. If you know what loan type you need, then you could still be overwhelmed by the amount of lenders that you have to choose from. Once you start looking, you could find that you discover even more. Some people will just use a financial advisor to match them up but this can be expensive and you may prefer to do the research for yourself. It can be useful to think about what you want from a lender and then you can match a lender to your needs.
Many of us will look at the costs first. We will want to know how much a lender is going to charge us. It is understandable tat we will not want to pay more than we have to, although it is important to look for value for money. The reason that rates vary so much and that there are so many lenders is because we all have different ideas on what makes a good lender. Some people will just go for the cheapest but others will want to make sure that they like the lender as well.
When comparing costs it is important to make sure that you are comparing like for like. The interest rate is something which many lenders will promote. However, it is the APR that you should be looking for because this includes any fees such as admin fees as well as the interest and so is a better way to compare. It is also worth thinking about the charges that they have as well. Lenders will charge you if you are late with repayments and also may charge you if you want to repay the loan early. Take a careful look at these as well, even if you think that you will not be paying these. If you are finding it hard to choose between loans then this could be an area where they significantly differ.
It is really important to find out how much you will be repaying each month and for how long. This is because you need to calculate whether you will be able to afford this. It will differ between lenders and you do not want to struggle to repay but you also do not want to be repaying over such a long period that you loan ends up being really costly. Therefore check this out and work out whether it suits you.
Many people will want to go with a lender that has a good reputation. Although this is a really good idea, you do need to be careful when researching this. You will find that people have diverse opinions about lenders based on their experiences, other peoples experiences and things they have heard in the press. They may even have untrue opinions. Therefore, try hard to do a lot of research and form your opinion based on factual information if you can. Try not to be tempted too, to think that because you have heard of a lender it means that they are good. You may only know them through adverts or because you read bad things about them but have forgotten that part. Try to judge them all evenly and look at them without using your past experiences and opinions unless you are sure that they are correct and applicable.
For some people it is really important that a lender has good customer service. They want to easily be able to contact them, perhaps in a local branch, by telephone or email. Think about whether this is something that is important to you. Most people will also want to make sure that if they need to get in touch that they will b able to do this quickly and get their problems resolved easily and efficiently. To find out whether this is likely to happen then you may need to talk to people that already use that lender and read things online. However, the best way to test it is to use it yourself. Contact the lender using the method that you are likely to want to use if you are their customer and ask them some questions. You will be able to see for yourself whether they respond quickly and what the quality of their response is like.
It is really important not to choose a lender too quickly. Make sure that you do a lot of research so that you can be sure that you have picked the best one for you. It is important to think about what you are looking or in a good lender so that you can find one that matches your requirements. As you start researching, you may find that your requirements change, but that will not matter, it will mean that you should end up with one that is perfectly suited to you.