As with any financial commitment it is always best to compare loans before signing up to ensure you have the best option available to you.
There are many available options for your to compare loans. Various websites (known as Price Comparison websites) can do all the leg work for you so you can easily find the Credit options that best suits your needs depending on what criteria is important to you.
To compare the Credit options, you will need a few bits of information handy – things like the amount of Credit needed, the length of time you intend to hold the credit for and various personal information.
Here are a few comparison websites where you will be able to compare loans – Quid Market is not affiliated or endorsed by any of these – always double check to make sure the comparison website you use is impartial and independent.
For advice on how to use Price Comparison websites and what to look for, read this article on Money Advice Service website:
What to consider when you compare loans
There are many factors to consider when you compare loans, especially when you are applying for High Cost Short Term credit.
As Short Term / Alternative lenders have to display their interest charges as an APR (Annual Percentage Rate) this can sometimes be misleading and confusing for customers.
Unless the loan term is longer than 12 months it is always advisable to pay more attention to the “Total Amount Repayable” which is the easiest way to work out the cheapest option for you.
If the cost of credit is not the most important factor, then pay attention to other things that may be offered by the lender – you may be able to get different rates if you have a Guarantor for example.
Short Term alternative lenders mainly offer “unsecured” credit. This means the loan is not secured against property – car finance for example uses the car as security against the loan, a mortgage uses property.
Unsecured Credit is higher risk for the lender and so again, the costs may be higher.
Take a look at how a Quid Marker loan compares to some other Short Term High Cost lenders – all the information below was taken directly from www.money.co.uk 15.02.2018 – Quid Market are not responsible for any changes / inaccuracies that may be displayed on external websites.
The Total Amount Repayable is based on £500 over 5 months
|Company Name||Amounts Offered||Available Terms||Representative APR||Total Amount Repayable (if borrowing £500 over 5 month)|
|Lending Stream||£50 – £800||6 Months||483% APR||£786|
|Satsuma||£100 – £1,000||3 – 12 months||991% APR||£880|
|Sunny||£100 – £1,000||6 months||563% APR||£809|
|My Jar||£100 – £3,600||3 – 12 months||991% APR||£857|
|Wonga||£200 – £600||6 months||1,086% APR||£923|
|QUID MARKET||£300 – £1,500||3 – 6 months||1297% APR||£867|
What to remember
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 – only apply for the amount you need and make sure the Total Amount Repayable is affordable for you.