If you want to buy something new, such as a TV you will always need to think about where you will be able to get the money form. It is a good idea to think about this really well as it could make a difference to how much it costs. For example, if you use your savings to buy it, then you will miss out on the interest you would otherwise have got and if you use a loan, you will have to pay the interest on the loan. So, you will need to think about which will be the better option for you. If you do decide to borrow the money, perhaps because you want to keep hold of your savings or because you do not have any savings, then you will need to look at the different loans to see which is suitable. Perhaps you might have a picture loan type, such as a personal loan, in mind or you may not know which to get. It can be a good idea to therefore consider what you need from the loan and then match a loan to your requirements. It is wise to think of things such as:
- Cost – it is easy to think that it is best to find the cheapest loan and the cheapest will have the lowest interest rates. However, this may not be the case at all and it is wise to figure things out carefully. For example, interest rates may not be the only loan costs. Loans may also have addition fees, such as administration costs that you will have to pay on top of the interest rates and these can be quite significant which means that you will need to check and see whether you are paying more than just the interest. You will usually find that the lender will be able to let you know how much you will need to pay in total, so you will be able to compare the figures from the different lenders.
- Repayments– it is really important to also find out about what you will be expected to repay and when. This will allow you to be able to calculate whether you will be able to afford to repay the loan. It will also be important to carefully find out what else you normally pay for as well as how much you get paid so that you are able to calculate whether you will be able to afford the repayments. It is really important to do this because you will get extra charges if you miss a repayment. You will also need to make sure that you can cover the costs of all of the other things that you need to buy as well, so that you will no have to pay charges for those or go without essentials.
- Customer Service – some people will want to make sure that they are going to get good customer service. This is understandable because if you have a query or problem you will need to contact the lender to get help. You want to make sure that the help that you can get will be really useful and fast and that they will be polite as that will enable you to feel confident in using them. You could try them out before you sign up for a loan and make and enquiry and see how good they are.
- Lenders Reputation – some people might like to make sure that they are using a lender who has a good reputation. If this is the case for you then you might want to find out more about them. You might find that you can chat to your family and friends and they will be able to help you out and give you some information that will be helpful. You might also be able to find some reviews online which you could use to help you as well. Do make sure that they are from trusted sources though as there is a lot of biased information online.