First time getting a personal loan or unsure why you should bother comparing loan offers? Think your regular bank's personal loan offers truly the best option for you... simply because they are 'legitimate'? Comparing your personal loan options carefully can go a long way in helping you save money on interest rates and reduce financial stress in the long run. That said, loan comparison doesn’t have to be a tedious and time-consuming process. With the right tool, you can find the best loan to suit your needs with minimal hassle.
Key things to look out for in comparing personal loans
Before we get into why you should compare multiple loan offers, what are the key factors to consider when choosing a personal loan? Here's a quick recap and review of each step of the personal loan comparison process provided by yours truly.
Already know what you're looking for? Let's get started right away.
Why compare personal loans?
Find the best personal loan deal possible
The main benefit of loan comparison is finding the best offer for your individual needs. To find the best personal loan deal, you must first understand the complexities of a loan offer and its actual true costs.
It's fairly obvious that the amount and term of your personal loan will influence how much your repayments will cost. But that isn't all. There are other factors that influence the true cost of a personal loan and should be taken into account when comparing personal loans. Here's an infographic to help:
Predictable factors such as fees and penalties, as well as your set loan amount and loan tenure, are relatively simple and easy to understand. What is more difficult to calculate are the interest rates on your personal loans and calculating a loan's Advertised and Effective Interest Rate (EIR) requires a little more work. ValueChampion has an article to help you out.
Knowing the true cost of one loan is one thing – but knowing that after comparing several other personal loan offers and options and then realising that you have a much better deal out there? You’ll get peace of mind knowing that you'll save money by accepting a personal loan offer and deal that's much more affordable for you.
It's okay if your personal loan application is rejected
It's not uncommon for people to get overly excited about the prospect of securing a personal loan deal, only to be turned down by financial institutions because they don't meet the loan's requirements.
This can be a very frustrating process but understanding why you were rejected for a personal loan may make it easier for you to understand your creditworthiness, and what you'll need to do the next time you apply with the same credit issuer.
You should not, however, limit your search to simply improving your creditworthiness until you are accepted by a bank or financial institution, or simply finding one who will work with you. Instead, search with the intention of comparing multiple loan offers from various credit providers. When you compare multiple offers and choose the one that most appeals to you, you will not only be able to receive a loan disbursement much faster, but you will also be able to get the best loan deal possible.
Comparing personal loans alone can be overwhelming
We’ve told you about the pros, so now we’ll tell you about what possible cons that might come with doing personal loan comparisons by yourself.
1. Too time and effort-intensive
The effort needed to compare personal loans one by one from various loan providers can be a hassle.
You may have to not only conduct online comparisons, but also physically visit offline credit issuers.
2. Inaccurate calculation
You never know when hidden fees creep up in the process of getting a personal loan.
Pay close attention to the difference between the principal and the total amount payable, according to our own comprehensive guide to personal loans. If the interest does not cover the entire difference, there is likely to be an additional hidden charge.
Too much work? Lendela can help.
Is the prospect of putting in too much effort scaring you away from loan comparisons, and perhaps even personal loans? You’ll be happy to know that we at Lendela can help shoulder the costs and cons of comparing loans! As Singapore’s leading loan comparison platform, Lendela helps you find personalised and pre-approved loan offers with ease. Working only with trusted banks and financial institutions, you can rest assured that you are getting the best personal loan offers with no hidden fees or charges.
How our platform works:
Set up your personal profile and submit a loan application on our website. This should only take a few minutes.
Banks and financial institutions will return to you with multiple, personalised loan offers.
Lendela calculates the total amount for repayment for every personalised loan offer with no hidden fees!
Choose the best deal and get your personal loan disbursement!
Finding the personal loan of your dreams is much easier and simpler with Lendela than it would be if you did it on your own. Start comparing personal loans with Lendela today!
- Comparing personal loan options and interest rates is a smart way to find the best loan offer and reduce your overall financial burdens in the long run.
- When doing loan comparison, it is important to consider the true cost of the personal loan and differentiate the Advertised Interest Rate vs Effective Interest Rate. You may also need to be aware of hidden fees.
- Lendela is a premier loan comparison platform that simplifies the process of finding the best personal loan. It offers a list of personalised and pre-approved offers so you can easily compare and choose the best one for your needs.