Which Loan Company Should I Choose?
For just about any and everything we need these days there is a web site that has the product or service or sale. And not just a web site, but a comparison web site.
Web sites that take the work out of us researching and searching around to find not only the best deal for us, but the best product or service for us; something that fits are needs.
The same is true in the world of lending and borrowing money. You need a loan, there are comparison web sites showing and comparing lenders.
However, while the web sites may do the research for you, and show and compare products and services, it still comes down to you in what product or service you choose.
Lending and borrowing is the same, however, not all borrowers get approved for a loan. One lender may say yes, and another lender may say no.
One lender may require a higher credit score to approve a loan, where as other lenders may not require such a high credit score.
Guarantor loans are such loans that are based on affordability and having a guarantor, not on credit scores.
APR/Interest Rates and Terms
There is a term in the sales world, “buy by price, die by price”.
What this saying is trying to convey, the cheapest is not always the best, or the better deal.
In the world of loans and borrowing money, some borrowers think the lowest interest rate, or APR/annual percentage rate, is the best deal, and this is not always the case.
If a lender is offering a low interest rate, it may be only for borrowers with high credit scores and good credit. Bad credit loans usually carry higher interest rates, but approve loans for borrowers with bad credit.
In some instances it is more about getting approved for the loan, and not the interest rate.
Then there can be the term of the loan.
This refers to how long you will be repaying a loan. Loans can be be anywhere from 30 days or less as in a payday loan, to 10 or more years, such as a mortgage loan.
How long a loan term is, affects the monthly payments. A longer loan term, can reduce the monthly payments, making the loan more affordable.
So while one lender may offer a loan for 24 months, if another offers a loan for 36 months, it can make the loan more affordable; and affordability can be a determining factor in which loan company or lender you choose.
There are many reasons and factors we use in deciding which lender we want to apply for a loan, and in the end getting approved for the loan is one such factor. However, also is our credit scores, interest rates, and the term of the loan.