5 reasons why you should use a credit comparison service
January 16, 2020
On the Internet you can find many types of comparison websites – prices, home appliances, telephones, computers, as well as financial comparison websites. Among the latter are also applications and tools that allow you to compare loan offers with each other. Is it worth reaching for such credit comparison websites? We present 5 arguments in favor of such a solution.
Thanks to the credit comparison, you can choose the best loan in a given time, with the lowest total costs, educate yourself in the credit sphere and save time that you would have to spend on self-gathering loan offers.
What is a credit comparison?
Before we move on to specifying the reasons why the use of a credit comparison tool is completely justified and useful for potential borrowers, it is worth considering what this comparison service is.
This is a special service – a tool that allows you to compare in one place credit offers from various lending institutions – banks and cooperative savings and credit unions. You can compare different loans, including:
- cash loans
- consolidation loans
- car loans
- company loans
The customer only needs to specify in the comparison engine their future loan requirements, including its amount and loan period, so that the comparison algorithm can present the desired list of current bank offers.
Why is it worth reaching for a loan comparison engine?
worth reaching for a loan comparison engine?” />
It takes a lot of time to collect several loan offers from different banks and then combine their parameters with one another. The client has to trace the bank offers on the internet, send inquiries about the desired loan or visit banks in person and have conversations with specific advisers on specific offers.
Wider selection of offers
Bankers agree that the selection of the optimal loan should not be limited to comparing 2-3 offers with each other. In this way, we may miss an offer that will definitely be the most advantageous for us in financial terms. That is why a credit comparison tool, which can compare 8-10 proposals in one place and more, is a very useful tool for the borrower.
Credit comparison usually not only presents dry data on loan offers, but also explains the complexities of the offer and terminology used in banks. Thanks to this, the client can expand his financial knowledge.
Checking various loan parameters
The bank’s interest rates are usually strongly marked. This is a nominal interest rate which deviates from the Annual Real Interest Rate (APRC). It is worth considering a number of parameters when considering loan offers, and these can be seen and compared with each other in the credit comparator.
The customer can see at a glance which loan and in which bank is the most advantageous for him. He can check his interest rate, APRC level, the amount of potential installment to pay and the overall cost of financing. Then you only have to choose the best loan.