Thursday 27th April 2006
Using online tools could help people to choose the loan that is most suitable for them, industry experts have claimed.
Direct Line has argued that some of the cheapest loans can be found with online lenders rather than high street banks as they do not have the same overheads to pay for.
Increased competitiveness in the loans market and reduced costs for online lenders means that there are great opportunities for consumers to save money, according to Direct Line Loans spokesperson Jill Coyle.
Lisa Taylor of Moneyfacts added that online tools comparing loan rates and offering advice on APR are particularly beneficial for those with impaired credit history.
"Its not that straight forward to pick a loan," she advised.
"The rates you see advertised are typical APR - you may see 7.9 but that may become 10.9 depending on your credit rating."
It is therefore advisable to use all the tools available on the internet to find not only the cheapest loan, but also the cheapest when credit rating is taken into account.
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