Skip to content

Category: Online Loans

How Do I find the Best Online Loans?

There are lots of lenders offering online loans and this means that you might wonder how you can find the best lender. It can be rather daunting too, wondering how you can pick between them. It may not be as tricky as you think though.

What do you want?

You need to start by thinking about what you are looking for in a loan. It is a good idea to start by considering loans that you have had before and what you liked and disliked about it. If you have not had a loan before, then think about other financial providers and how they operate. You will have a current account and maybe savings accounts to so you will have an idea of how these sorts of things work.

It is good to think about what you ae willing to pay for a loan. If you need money desperately for something, you might be willing to pay more than if you are not really that bothered about whether you need it or not. You may also only be able to afford a certain amount, so that could be important as well.

It is also worth thinking about repaying the loan. Many people do not focus on this, but it is really important to make sure that you can afford to repay it. You may find that you will prefer to repay in small amounts over a number of months so that you can manage it more easily. However, you may prefer to repay it all at once very quickly, so that you can get the loan over and done with really fast.

Some people also like to think about the lender. They may feel that they want to use a lender that has good customer service, has a good reputation or things like that. It is good to have a think about what you might like to see in a good lender too.

There may be other things that you also need in a loan. Think about everything that you need.

Check out some lenders and adjust

Once you have your list, you can start looking at the lenders and see how they compare. Once you have looked at a few, you will get a better idea of what they are like and how they operate. This should allow you to think about whether you are likely to get what you are looking for from your list. It might also make you think a bit more about these types of loans and you might want to add things to your list. Be flexible and make sure that you are willing to change your list so that you can get the best possible one. You may not be able to match completely but it will help you to get the closest that you can.

It is also a good idea to prioritise the things in your list. For example, you may have a price limit but may be prepared to pay more if the lender is better. Have a think and make a few notes. Then you will be ready to start comparing and choosing.

Pick the best

It may seem like a lot of hard work to then look through every lender and compare them with your list. However, it may not take that long. Look up lenders in your search engine and then just look at each to see whether they match with your requirements. You should be able to get into the flow of this and get the information you need quite quickly.

It can be tempting to speed the process up by using comparison websites, review sites and things like this. As they tend to have a big list of lenders it can be useful. However, they are not perfect. This is because these sites make their money through the commission that they earn through leads. If they recommend a lender and someone goes to the lenders site using the link on their website, they will get paid commission if the person goes ahead with the loan. Although there is nothing wrong with this, it does mean that they may only list lenders that pay them a good rate on commission and therefore there may be some good ones that are missing. Although you could include them in your research, be sure not to be influenced by their ratings as you may not agree with them and look for other lenders as well to compare them with.

If you can go through all of this process then you will be able to identify who the best lender and which the best loan is for you. Unfortunately, as we all have different requirements, we will find that we will not easily be able to find the best lender or loan. They vary and as we all have different requirements then we cannot say that one is more superior than the other. This is why we all have to do our own research in order to draw our own conclusions.

Do Online Loans Cost More Money?

There are a lot of things that we need to think about when we are applying for loans. This can be everything from whether our friends would recommend them to you to whether you have heard of the lender. Obviously. some things are more important than others. This is very personal and we will find that if we talk to people about the things that would be the most important to them, they will vary a lot. However, most people will be concerned about the cost of the loan.

General costs of loans

All loans will have a cost unless you are really lucky and find one with 0% interest but they are extremely rare. Even those loans might have some fees anyway. Loans tend to charge in different ways and it is good to have an understanding of these.

The main cost that we will know about it’s the interest rate. The lender will charge a certain interest rate on the amount that you have borrowed and this will determine what they charge. Sometimes the rate is the only thing that is charged and sometimes there are additional charges as well. Interest rate will vary between different types of loans and different lenders.

Some loans will have a fixed rate of interest. This will mean that the interest rate will remain the same, either for a certain time period (perhaps a few years in the case of a mortgage) or for the full term of the loan. The advantages of this are that you will always know exactly what you will need to repay. Some loans have a variable rate. This is an interest rate which can change. There is a special tracker rate which will change if the base rate changes, but other variable rates can change at any time, although they often follow base rate changes too. The base rate is the rate that the Bank of England lend at and they adjust it to stimulate or suppress the economy in order to control inflation (the increase in prices).

As well as interest, loans may have additional fees as well. These could include administration fees, early repayment fees, late payment fees and all sorts of other things. Some of these fees, such as the administration charges will have to be paid and some, such as late payment fees are charges which only come in, in certain circumstances, such as missing a repayment. It is worth noting that an AER is an interest rate which allows for the compulsory fees in it and so if you want to compare loans using interest rates then this is the rate to use. However, it can be better to find out what the costs are in monetary terms (you can find out form the lender) and this will not only help you to compare them like for like but you will see the cost and it will help you to decide whether you feel that it is worth it or not.

Costs of online loans

Online loans will vary in cost depending on the lender that you choose as well as the amount of money you need to borrow and how long you need it for. Therefore, it is a good idea to make sure that you calculate the costs of different lenders so that you can compare them. Whether you feel they are expensive or not, will depend on whether you feel that they offer good value for money.

The online lenders will charge interest and some fees too and because they are taking on a high risk, they may seem expensive. However, it is up to you to decide whether you think they offer good value for money. The best thing to do is to consider all of your options and compare the costs of them and you will be able to decide then which will be the best for you. It might be that you have found cheaper types of loans and you will need to decide whether you think they will suit you. You need to think about other things rather than just the cost though. Consider whether you are prepared to pay more because the loan suits your needs better. This is where it is well worth thinking about what your requirements are and then matching those up with different types of loans to see which will fit your needs the closest. Then you will be able to choose the type of loan which will provide you with the best value for money. Sometimes it is well worth paying a bit more for something If it can provide you with a better service.

So, even if something costs more money, then it does not mean that you should ignore it. You may find that online loans are more expensive than some other types of borrowing but if you have a poor credit record it might mean that you cannot easily borrow money in any other way. You may want money really quickly and find that an online loan is the only way to get it fast enough.