When faced with a financial emergency it can seem like an impossible task to better your finances, especially when it comes to paying off bills and other important surprise payments. However, it is not impossible. In this article, we will be providing you with insight into some of the top three reasons why you should compare personal loans before deciding upon one.
You Can Find Competitive Rates
When looking for a loan, there are several reasons why you should begin to compare loan types, one of the main reasons is the competitive rates that you are likely to find. With many different payday loans Australia providers competing to provide those applying with the best possible rates, it is important to do your research beforehand. Though this may seem like a time consuming additional step when faced with a financial emergency, this will aid you in reducing the cost with ease.
Look For A Lower APR
In addition to finding competitive rates, several ways of comparing personalised loans can help you in finding the best APR to suit you. With several lenders providing you with a variety of APR’s based on the credit score that you have at the time of applying for the loan. It is important to note that the better your credit score is, the lower the APR on your loan will be. It is important to note when comparing APR, the charges will only include compulsory charges some fees could be added on the top of this APR and may not be considered at the time of your application. Therefore, taking the time to do your research will enable you to find the loan type with an APR that is affordable for you to pay back with affordable monthly repayments.
Research Can Limit The Impact On Your Credit Score
When you apply for a personal loan, you will be met by several credit checks with every lender to ensure that you are eligible for the loan amount that you have applied for. But what is the difference between soft and hard credit checks?
A soft credit check is a brief look at the information within your credit score. This is often a check that is conducted by the individual when checking their own credit score, this does not appear on your credit score and it does not matter how many appear on your credit score.
A hard credit check however is when a company or a lender checks your credit score. Each of these checks will feature on your credit score and will be present on there for 2 years. This will impact your credit score if too many are present and therefore, you should keep these checks to a minimum to minimalize the impact these will have on your credit score.
With this in mind, there are several reasons why you should begin to compare personalised loans before you make the final decision on which loan type is right for you. Which of these will you be using?