There are many different lenders that offer instalment loans and so it can be difficult to decide which lender is the best. The problem is that if there was one lender that was better than all of the rest then everyone would use them and there would be just the one. The reason that there are so many lenders is because we all have different ideas of what makes a good lender. Therefore, we will not all agree on who is the best. You will therefore need to start by thinking about what you think make a good lender and then you will be able to match up a lender to your requirements. You may not even be sure of what you want from a lender, but if you give it some thought you could probably come up with a list of things. You might need to think quite hard and there are a few features below which might help to focus your thoughts.
All loans will come with a cost and many people will want to find the loan with the lowest cost. It is important to carefully understand about cost though. Firstly, people might think that the loan with the lowest interest rate will be the cheapest. This is not the case as the interest rate may not be the only charge for the loans, it will depend on which interest rate you look at. The APR means Annual Percentage Rate and this is the interest charged but there may also be additional fixed fees to pay as well. So, if you choose the lowest APR you may find that it is not the cheapest loan. However. AER means Annual Equivalent Rate and includes the fees as well as the annual percentage rate. Therefore, if you compare AER then you are comparing like for like. It can get really complicated though and there are easier ways to compare loans. On most lenders websites there is a calculator where you can work out the cost of the loans in total. You enter the amount that you want to borrow and the length of time you need it for and it will let you know how much you will need to repay in total. You can compare these figures easily and you will be able to find out which lender will be the cheapest. However, you need to think about other factors as well as the cost.
It is really important to make sure that you find out how much you will be expected to repay and when and then look at your personal financial situation to see whether you think that you will be able to afford to repay it. You might have a glance and think that it looks okay but this is not really good enough. As there are so many lenders to choose form who will have different repayment schedules then it is worth working out exactly what you can afford and then you will be able to choose a lender that fits in with that. You will find that if you have smaller instalments then it will be easier for to manage them but because you owe money for longer the loan will be more expensive. You will therefore need to try to get a balance between not paying too much for the loan but making sure that you can repay.
Value for money
It is also good to think about the value for money that you are getting from the loan. This does not mean that you choose the cheapest but the ne that you feel will be best taking the cost into account. This will include things such as how easy it will be to repay as discussed above. It will also include features of the lender that are important to you. You nee dto think about what you think is important in a lender. Some people might like one that they have heard of, used before, comes recommended or things like that. For many the customer service that they provide can be the most important to them.
Some people really feel that having a good customer service is important. It means that if you need to contact the company for any reason, you can be confident that they will be able to help you. You also might be keen that you will be able to contact them using a means that you are comfortable with perhaps that might be email or telephone. If you want to test their customer service then it can be worth getting in touch with them yourself an seeing what sort of response you get. Think about how fast it is as well as how useful they are and how polite and friendly they are.