to obtaining loan quotes consumers want the
answer in simple, plain English, i.e. `the bottom line’.
However, the problem we all encounter is that trying to find
out the `bottom line’ can often be as painful as pulling teeth.
Let’s take the APR, for example. On the surface, this seems
like the most obvious and simplest way of determining whether
or not lender A is likely to be cheaper than lender B and,
therefore, that should make our decision easier, shouldn’t it.
Errm=85.well, no not really.
Lenders are becoming savvy that, as consumers, we’re likely to
shop around for the cheapest loans deals and they’re also aware
that one of the key indicators when we’re doing our comparisons
is the APR. But therein lies the problem. If you ever see their
tempting advertising, you’ll no doubt be familiar with that all
important little word they include before the APR =96 “typical”.
Well, typical means that they only have to ensure that two
thirds of all applicants are offered the typical APR. But, what
if you’re in the other third? Quite often you might contact half
a dozen lenders as you’ve been attracted by their APR to find
that the loan quotes you are given are higher than the rate
advertised.
So, depending on your credit rating, you may find you get the
advertised APR or you may find that you can still have a loan
but only at a considerably higher APR or you might even find
that you are refused altogether.
OK, so you’re accepted onto the typical APR. You’ve made all of
your loan quotes comparisons and you’ve come up with a lender
that’s the cheapest. But are you sure they are the cheapest?
Well, have they told you about any redemption penalties that
you may have to also pay in addition to the specified monthly
repayments should you have the audacity to repay the loan
early? What about payment protection insurance? They may insist
that you have to take that out with them too in the event that
you find yourself temporarily unable to meet your repayments.
Have you factored that into your loan quotes?
Consumers need to be extremely wary of the underhanded, yet
perfectly legal, tactics they’ll employ to entice you into
choosing them as your lender. However, instead of asking for
loan quotes comparisons, you should start adopting the mindset
of asking for the bottom line =96 i.e. the total amount you’ll
have to repay over a determined period and how much that breaks
down month by month and, if there are any clauses or conditions
attached. In asking these questions, you can start unravelling
the `mystery’ of loan quotes to ensure that you get yourself
the best deal possible.
About The Author: You can count on Marcus Brooks for useful
money saving and finance tips. Get more of his help on
http://www.uk-loan-guide.co.uk
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