If you’re searching for good loan companies, the easiest way to go about it is to learn a bit about the loans market and decide what type of loan you need.
The problem is that there are so many loan companies available so how do you choose? To help you – here’s our guide to finding your perfect loan company.
Loan companies: High street banks and building societies
Pros: With this type of loan company, you know what you’re getting because you’re probably familiar with the brand. All high street loan companies have branches throughout the country, so you can usually speak to someone in person about your loan. The company will probably offer the option of banking online as well as in person.
Cons: A high street loan company will usually charge a bit more in interest than an online one. They may also require you to make an appointment with an advisor if you wish to discuss your finances.
Loan companies: Online banks
Pros: Because they have fewer overheads, this type of loan company usually offers a lower interest rate. In fact, most of the lowest loan rates around are from online banks. You can usually set up a Direct Debit to take care of your monthly repayments so that you don’t fall behind. As well as banking online, you’ll also be able to phone the loan company if you have problems or need advice.
Cons: Online loan companies have no branches, so you can’t pop in and conduct your banking in person. Also, most of them are less well established than high street lenders. If you’d rather borrow from a big name bank, you might be tempted to opt for a high street loan (which might be more expensive), but did you know that most online banks are owned by high street lenders? For instance:
|Online loan company||Parent loan company|
|Intelligent Finance||Lloyds TSB Group|
|Halifax||Lloyds TSB Group|
Choosing your loan company
Once you’ve considered what type of company you’d rather borrow from, the best way to choose your loan company is to shop around. You can do this by using the uSwitch.com loans comparison service.
The comparison service will ask you a series of simple questions about the type of loan you’re looking for. It will then perform a search of the loans market to give you a comprehensive list of those that suit your personal circumstances. Shopping around in this way can save you a fortune in interest payments, as all loan companies caters for a different type of customer.