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Moola – The Loan Comparison Helper

Why use Loan comparison companies?

When you take a loan, you commit yourself to giving a part of your monthly income to the lending institute from which you took the loan for the entire duration of the loan agreement. A decision made within a day can impact your life for 5, 10, 15 or even 25 years. For instance, you require quick cash to get your car repaired and take a payday loan. To repay the payday loan, you take other payday loans and keep on ruing that for the rest of your life. That one mistake made when you took your first payday loan can keep haunting you for a long time period. BBC¬†to know more about the menace of payday loans. Similarly, you took a huge unsecured loan to get your car but were so excited to get enough cash to buy a car that you didn’t pay much attention to the high APR and the huge monthly installments that you would have to pay for the next 5 years. Once the excitement period ends and the bank starts to send you mails telling you about the fines etc for non-payment of the cash, that would be the time when you would realize how foolish you were to not review the deal more properly.

Loan Comparison Companies and How Can They Help?

If you want to avoid taking hasty decisions about loans which would cripple you financially for a considerable time then you should start to search for loan comparison companies. The idea behind any comparison company is that people shouldn’t just pick the first deal they find for the product they want. For instance, if you want to find a website design service online, you would make a big mistake if you just purchase the services of the first service that you find. By going to a comparison site which lists the offers of different website design services, you should be able to compare the prices and packages of each service and would thus, be in a great position to make an informed decision that would suit your requirements the best.

 

The same is the case with loan comparison companies with the simple idea of helping you compare loan deals offered by different sorts of lending institutes. By deciding your requirements and then matching them with each deal you find on the comparison website, you should be able to identify great deals for yourself. Had you simply taken the first loan deal you had found, you would have made a big mistake.

 

Finding a Reliable Loan Comparison Company

There are a number of loan comparison companies present online. In order to find a company which would only list high quality deals and would only display offers of reputable lending institutes, you should search for comparison companies which offer comparisons for more than just loan deals. For instance, EverMoney is a high quality loan comparison company and it offers comparisons for energy, insurance and broadband deals. This shows that the company has contacts in a lot of industries and has the trust of a lot of service providers too.

 

Information That You Should Look in Any Loan Deal

Once you find a reliable loan comparison company, the next step is to know what things to look for in the information given for each deal at the loan comparison website. The things of importance are:

  • The maximum and minimum loan amounts that would be offered within the deal
  • The type of loan for instance personal loan, unsecured loan, secured loan etc
  • The total amount that would have to be repaid (including the interest),
  • The duration of the loan i.e. How much time would be given to repay the loan
  • The calculated monthly installments keeping in mind the interest rate
  • The interest rate itself in the form of APR
  • Clauses like early repayment charge, fixed or variable interest rate etc.
  • Eligibility criteria including information about what type of credit history would be required (excellent, fair, even poor would suffice)

 

Some of the information might be missing in some deals and this is because some companies don’t want to tell all of it to the customer before the customer actually shows some interest. However, there are a few things that should be told straight away and you can click here http://www.financial-ombudsman.org.uk/ on this.

Regardless of what you find on the deal, you should use a loan calculator to do the calculations on your own too. This would help in ensuring that the lending institute is giving away the right figures and is giving you the correct information.