Here at QuidMarket, we know how important to do your research before making any big commitment. While this rings true in every aspect of life, it’s especially vital when making a financial commitment, so it’s always best to do a thorough loan comparison before signing up to ensure you have the best option available to you.
You might think it’s strange that we’re encouraging you to compare loan rates and shop around for the best deal. What if you find a cheaper deal elsewhere? Sure, that could potentially happen, and that’s okay. Our aim is to help hard-working people meet their short term financial needs, and part of that is ensuring you know how to make the most of your loan comparison in the UK.
Before you compare loan rates, it’s a good idea to have a few bits of information handy. This includes the amount of credit you need, how much time you’d like to repay your loan and some personal information. Before submitting your personal or financial information anywhere online, make sure you trust the source. Check the broker or loan comparison website’s policy on how they’ll handle your data, and make sure you see a padlock symbol in the address bar of your browser – this lets you know you’re on a secure website.
Before getting started on your loan comparison, you should also have a general idea of the types of loans you’d be willing to consider. Do you want logbook loans to borrow cash against the value of your car, guarantor loans which require a second person to co-sign your loan agreement or unsecured short term loan comparison? Are you specifically looking to compare bad credit loans, or do you have a good credit rating? This will help narrow down your choices and provide clearer information.
How Do You Compare Bad Credit Loans?
There are many available options for you to compare personal loans in the UK, including using loan comparison sites and loan brokers – more on these below. The more sources you check, the better informed you’ll be. You should also do more than simply compare loan rates – depending on what criteria are most important to you, here are other factors that can come into play when you compare personal loans in the UK:
Does the lender provide information clearly? Are they fully transparent about all costs involved in their loan and do they make it easy for you to find all the information you need before signing up? Do they make it easy for you to contact them with any questions and concerns?
Is the lender FCA authorised? This is important because, in the UK, all companies offering loans are required to be authorised and regulated by the Financial Conduct Authority. If a non-authorised company offers you a loan, they’re already acting illegally, so it would be wise to stay clear. Choosing an FCA authorised lender also ensures you are given certain protections, and benefit from the FCA’s price caps which help to keep the cost of short term credit low.
How do they make lending decisions? This factor is especially important when you need to compare bad credit loans. Companies who approve loans based on your credit rating may charge significantly higher interest rates to those with low credit scores, or they could potentially turn down your application. You might prefer to look for companies that approve loans based on your ability to afford the repayments in a sustainable manner – this can be a much fairer way to offer loans for all parties involved. After you’ve found a company through a loan comparison, read through their About Us and FAQ pages for this information.
What do their customers say? This is easier to find out than ever thanks to online reviews. Read through their reviews on sites such as Trustpilot and find out how previous customers feel about their experience. Importantly, you should also look at how the company responds to negative reviews – do they respond constructively to resolve any issues raised?
How does QuidMarket compare?
Take a look at how a QuidMarket loan compares to some other Short-Term High Cost credit providers – all the information below was taken directly from www.money.co.uk and the various companies’ own websites on 11/03/2020 – QuidMarket is not responsible for any changes/inaccuracies that may be displayed on external websites.
|Company Name||Amounts Offered||Available Terms||Representative APR||Total Amount Repayable|
|Lending Stream||£50 – £1,500||6 Months||1333% APR||£916|
|Satsuma||£100 – £1,000||3 – 12 months||535% APR||£880|
|Sunny||£100 – £2,500||1 – 14 months||1266% APR||£910|
|My Jar||£100 – £3,600||3 / 6 / 12 months||1081% APR||£890|
|Money Boat||£200 – £1,500||6 months||939% APR||£806|
|QUIDMARKET||£300 – £1,500||3 – 6 months||1301% APR||£911|
Use the sliders on the QuidMarket home page to see how the different loan amounts and duration can affect the monthly repayments and the Total Amount Repayable.
So, the main thing to remember before entering into a credit agreement is to make sure you have looked around for the best options available to you that fit your needs – some companies offer various amounts/loan terms – as with any application for credit, only apply for the amount you need and make sure the Total Amount Repayable is affordable for you.
Warning: Late repayment can cause you, serious money problems. For help, visit: moneyadviceservice.org.uk
Using Loan Comparison Websites
Comparison sites have been specifically designed to compare loan rates, and many of them offer useful advice on what to look for in a loan. However, most comparison websites do need to make money somehow, so you should be cautious if any short term loan comparison site seems to be pushing you towards a certain lender over others.
You should always double check that the loan comparison site you use is impartial, independent and authorised by the FCA. It’s also a really good idea to look on multiple different sites for loan comparison in the UK. Here are a few comparison sites where you will be able to compare loan rates. QuidMarket is not affiliated with or endorsed by any of these.
Compare Loan Rates with Brokers
You should be aware that when you use brokers to compare personal loans in the UK, it usually won’t be as cheap as if you use loan comparison websites and go directly to the lender. This is because brokers charge fees – this could be a direct fee that is listed clearly, or it could be hidden in the cost of your loan. So even if a broker you use to compare bad credit loans claims to be free, you could still be paying indirectly through a higher-cost loan.
Another option for comparing loans is to go through a broker. Again, it is common for brokers to only offer short term loan comparison in the UK from a select number of chosen lenders, so you’ll only be able to compare loan rates from a small segment of the market.
We like to think of taking a loan out via a broker as being similar to booking a holiday through a travel agent; the main benefit is convenience, but you could pay considerably more and won’t always get the package you would have chosen yourself.
What’s more, if you do choose to go ahead with an option you’ve found through loan comparison in the UK with a broker, you could end up paying considerably more. This is because brokers offer loans without having carried out a full credit check and are not able to make any decisions about your loan application themselves. They compare loan rates based on general information and it is subject to change. Once the broker passes your application onto the lender and the full checks are carried out, your rates could rise considerably.
Should You Compare Loan Rates Using APR?
When you apply for short term loans, the different percentages you see can become very confusing. These lenders must display their interest charges as an Annual Percentage Rate (APR). But when the loan term is significantly shorter than a year, the annual rate can sometimes be misleading and confusing for customers. So how do you approach your short term loan comparison the right way?
The easiest way to compare loan rates and work out the cheapest option for you when the loan term is a matter of months is to look at the Total Amount Repayable. This factors in the original loan amount to be repaid, plus all interest, fees and charges that are tied in with your loan, and it’s a great way to compare bad credit loans clearly. It doesn’t include things like default fees – which you are liable to pay if you miss a payment or make it late – but this is capped by the FCA to £15 total for all FCA authorised lenders of short term credit.
What to Remember About Loan Comparison in the UK
The main thing to remember before entering into a credit agreement is to make sure you have looked around for the best options available to you that fit your needs – some companies offer various amounts and loan terms, which can make it difficult to compare loan rates across the market.
Short-term loan comparison in the UK is a great way to find the best deals, but short-term credit is more expensive than other options such as some credit cards, taking out a loan from a credit union if you are eligible, or borrowing from friends and family. If you do decide that are the right choice for you, only apply for the amount you need and make sure the Total Amount Repayable is affordable for you.
Yes, the main reason to compare loans is to find the best one to suit your circumstances. As there are many different types of loans available from many different lenders, comparing loans helps you to be as informed as possible. Without comparing different loan products, you won’t be able to see if the lender you’ve found offers the most affordable option. At QuidMarket, we provide the flexibility to adjust the amount you want to pay each month with the total loan. This way, you can choose the loan most affordable for you and apply if you’re happy with the terms. So, if you find a cheaper option, adjust the repayments using our loan calculator to see a similar loan term.
If you’ve reviewed your options with other lenders and have looked at how QuidMarket compares above, you can start your application straight away. By clicking apply now, all you need to do is fill in a few short details and we can start assessing your application quickly. We can provisionally approve your application and then our team of underwriters can perform the necessary credit checks and financial assessment. If successful, you could have the approved funds in your account the same day.
A credit broker provides borrowers with a comparison of a limited amount of lenders. They do not compare all lenders of the type of loan you require, only those they have arrangements with to refer potential borrowers. Whilst this can be convenient, they may charge a referral fee to do so, and you will only be seeing a selection of lenders. The best way to compare loans is to take your time researching your options, rather than being shown a pre-picked selection by a broker. QuidMarket is a direct lender and not a broker, so you can compare our short term options with similar lenders at your convenience.
Comparing different types of loans to each other can be difficult, as every loan will have a different purpose. Payday loans are a short term option that can charge higher rates of interest over a few months, whereas a personal loan can be borrowed for higher amounts over a longer-term. For loans under £600, for example, borrowers may not find suitable personal loans, so a short term loan may be a better option. You should compare loans to find affordable options for your circumstances. If you require quick cash to cover an unexpected bill that you want to repay in the short term, you’ll want to compare loans that offer this flexibility.