Finding The Best Loan Company

December 12th, 2019
Finding

Looking for a good loan company may seem a daunting task yet there are ways to simplify the search.

The first and most important step is to ascertain what type of loan will be most suited to your needs; to do this it’s best to first do some research on the loans market.

After you have done some simple fact finding, you can then compare loans. It makes no difference if you want a personal loan or you are looking for a debt consolidation loan.

There are three main sources for acquiring a loan:

  • High street banks and building societies
  • Choosing your loan company
  • Online banks

There are so many loans available that finding the best loan company can be hard. Here’s our guide to finding them.

What are your options?

Online banks

Advantages

  • If you need some advice, you can call the online loan company and get help with any problems.
  • You will usually find a lower rate of interest on your loan with an online company, which reflects their lowered overheads.
  • A direct debit can be easily set up, eliminating the risk of forgetting a monthly repayment.

Disadvantages

  • Online loan companies tend to be more recently established and therefore less well-known than the bigger high street lenders.
  • You will not be able to go into a branch office to make any banking transactions or speak person to person with an advisor.

High street banks and building societies

Advantages

  • It is highly likely that a high street company will also offer banking facilities, both online and in the branch.
  • A loan company that is well known will be on main high streets in almost every city or large town in the UK; you can therefore feel comfortable that you can have a person to person meeting or phone call with a trained advisor.

Disadvantages

  • In most cases a company with a high street presence will require you to attend for an appointment to discuss your financial situation.
  • You may find you have to pay a higher interest rate for a loan company that operates on the high street over and above an online only company.

Tip: It’s often more appealing to many people to borrow from a more renowned high street lender, as you may feel more secure, even though it will cost you more in higher interest rates; however, most online banks have a parent company which is one of the high street loan companies.

Intelligent Finance is owned by Lloyds TSB

Cahoot is owned by Santander

Halifax is owned by Lloyds TSB Group

Egg is owned by Citigroup

How do you choose the best lender for you?

Decide on the type of lender who best suits your borrowing needs because all loan companies cater for a different type of customer. To save a significant amount of money, shop around and compare quotes.

You will be asked about the type of loan for which you are looking; the comparison service will conduct the search and highlight a list of lenders most suited to your personal financial needs and specifications.

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