There are many lenders available for us to choose from and it can be really daunting knowing which one to choose. Some people will turn to an independent financial advisor to help them to pick because they find the choice so difficult. However, they are expensive and so it can be better to do the research yourself or if you have no spare money you may have no other choice!
There are a number of different things that you might want to look for in a good lender –
– Offering the products you need – it is important that they offer the types of loans that you are looking for. This sounds obvious, but you should work out what type of loan will suit your needs the best first and then pick form the lenders that have those. It can be easy to set your hopes on a lender and then find out that they do not have what you want and pick something unsuitable or feel really disappointed. So start by deciding on the loan type then look at which lender will suit you the best.
– Costs – cost is a really big issue for most people when they are borrowing money. You can compare lenders using the interest rate and so this will give you some idea of which costs the most You do however, need to be aware that they may have other fees as well. There could be set up fees, early repayment fees and fees for late or missed payments. It is wise to be aware of these as well and think about whether you are likely to need to pay them and if so, which looks like they will charge the most. It is nice to think that we will not need to pay late fees, but it is good to be aware of how much they are, just in case. Also you need to think about the set-up fees as you will have to pay this and how these compare. If you hope to pay the loan back early, then any early repayment fees will also be relevant.
– Repayments – It is a really good idea to find out how much the repayments will be and how many there are to pay. Consider how much you can afford to pay in the way of repayments and whether these are going to be affordable for you. You may wish to repay the loan as soon as possible and therefore do not want many repayments. However, this will mean that each repayment will be more expensive and so you need to consider whether you can afford them. So make sure that you calculate what you can afford and find the loans which have affordable repayments but the least possible of them.
– Reputation – for some people the reputation of the lender is important. They want to go with a lender that they have heard of because they feel they will be a more valued customer or get a better service and price. Especially if they’re taking out payday loans and other types of short term credit. This may not be the case, but you should be able to check the reputation of the lender online. There are reviews of different lenders so if you find some then you will be able to find out more about those that you have not heard of. Also ask friends and family as they are not biased and will give you their honest opinions about their experiences with different lenders.
– Customer service -for many people the customer services is an important factor. If you have any problems then they will be who you turn to for help. This means that you will want to be able to get through to them easily, understand them and find them helpful and polite. The customer service can vary a lot between lenders and so you could find that it is not as good as you had hoped. It can therefore be wise to get in touch with them before you take out a loan and find out what they are like. Ask them questions and see how helpful and polite they are.
These are just a few factors that might be important to you when choosing a lender. Think about what you might find important and include those factors as well. It is a good idea to research hard because it could make a huge difference to how much stress your loan gives you. Finding the right lender which charges fairly as good repayment terms, good customer service and a good reputation can make a huge difference to your experience as a borrower. So take your time and ask friends and family and look online for help as well so that you can get as many opinions as you can before your commit to your loan.