Considerations When Choosing a Lender
Equally important as choosing the right type of loan for your needs is choosing the right lender to apply with. Logbook loans, compared to conventional options, are more expensive in terms of interest rates. This is why it's crucial to shop around for the most competitive rates. If you're diligent enough, you'll end saving or cutting about 100% or more on your loan's annual percentage rate or APR.
Regardless if you're a first time borrower or it's your nth time but you're just looking for a new lender, here are some things to consider when looking around:
Years in Business
To know if the lender is reputable, you need to look at its years in the business. Normally, the length of time the company has been around is an indication that it's doing great which also means that customers keep coming back and new ones hook up with them because of good reputation and superior offers.
Going with a lender who's been around for long is your best bet if you want reliability though not always the most affordable rates.
Another consideration to account for when choosing a lender is customer feedback. What do previous customers say about the lender's rates, service and offers? Were they happy or disappointed? If there were complaints, what are they? These are some of the things you need to investigate on to ensure that your lender is not just saying empty promises.
The best way to find out if the lender is living up to its promises is by checking customer feedback. It is also one way to check how the lender is with respect to overall customer service.
While you're looking at reputation and customer feedback, you should also check for partnerships. Most reputable and top lenders in UK usually partner with other key companies to offer more options to their customers.
If you want the best deals in town, you should look for lenders with great partners so you'll land not only the most competitive deals but also the most reasonably priced options.
Investigating interest rates, particularly the Representative APR, is also another way to trim down you options. If you're looking for cheapest rates there are, applying lenders that have low APRs is ideal. However, you also need to remember that most lenders have hidden fees and charges. Don't choose solely based on APR but further investigate fees and charges by reading the fine print.
To better understand how the concept of APR works, Money Saving Expert has clearer explanations about annual percentage rates for loans.