When comparing personal loans it may be helpful to follow these guidelines.
Loans may come with set-up fees. Compare these along with the APR (annual percentage rate) to determine which ones offer the best value.
Longer loan periods lower the monthly payments, but increases the total interest you pay on the loan. Decide on the loan period that best suits your needs.
Lenders may charge fees or raise the interest rate if a monthly instalment is late. Identify and understand these fees before accepting a loan.
Payment protection provides peace of mind if your circumstances change. Study the details of the loan payment protection policy before you accept the loan. Understand what it covers; decide whether it is right for you.
When deciding if you can afford payment protection, consider whether you can afford the loan without payment protection if you experience a loss of income.
Decide if you want an early repayment facility that allows you to pay back the loan early. Consider if this feature is worth it even if it means a higher interest rate.
If you have a variable interest rate loan, make sure you can afford monthly instalments if the interest rate goes up.
Look for loans with a flexible repayment option if you want to vary the monthly payments.
Look for loans with a drawdown option if you need access to extra cash.
There are several features on personal loans.
