Compare Personal Loans
Interest rates are important – but they're not the only consideration
When you compare personal loans, the interest rate is important – after all, the higher the APR, the more you'll pay in interest charges – but it's not the only thing you should look at. Make sure you compare like with like: some loans include features that may be very important to you.
Many people who compare personal loans do so by looking at one thing and one thing only: the interest rate, called the Annual Percentage Rate or APR. That's certainly important – there's several hundred pounds' difference between a big loan at 6.9% and 9.9% APR – but it's not the only thing to consider.
When you compare personal loans, it's important to take other factors into account. Does the loan you're looking at include a payment holiday feature, where you can skip three consecutive payments mid-term? Many loans do. Can you pay extra if you're feeling flush, or borrow more if you need a cash injection? Some lenders include these features, and some don't.
Deciding whether you need these extra features isn't just a case of asking, do I need it now? Your circumstances may change during the term of your loan – you might have kids, or hit money trouble, or decide to go on an insanely expensive holiday. When you compare personal loans it's a good idea to consider these things before deciding which loan is the perfect one for your purposes.
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