When you are looking to get the cheapest possible interest rate on a loan in the United Kingdom, the most obvious thing to do would be to visit one of the many loan comparison websites on the internet. While this might seem the ideal thing to do in the beginning, if you are going to blindly believe everything they say without checking everything yourself, you might find yourself not getting the kind of service you were looking for when you entered their site.
Most of these comparison sites claim that they are linked with many lenders and therefore it is only logical for you to believe that they will be able to get you the lowest possible interest rate in the market.
The only problem here is that if every comparison website actually was looking for the cheapest rate for you, all of them would point to the same lender at the end of the day. However, this isn't entirely true. So, how do you choose the right loan comparison website and how do you know which ones to stay away from?
Since not many people have the required amount of time to go through each and every loan comparison website in the United Kingdom and compare interest rates from all the lenders in the country, the easiest place to start your search is on Google. You will get a list of the most frequently visited loan comparison websites in on the internet. So how do you choose the right one?
The first thing you need to know is that every loan comparison website and lender will only be able to tell you the interest rate you will be paying after they go through your credit history. This means that you will only get to know of your interest rate after you apply for a loan. If this is the case, I really don't see the reason why these websites claim to have the lowest interest rates on the market. If your credit score determines the interest rate you will pay, how are they helping you?
There are a few websites which have tools that can help you determine your credit worthiness without actually revealing your records to them. This is quite a handy tool indeed as you get an idea of the kind of interest rate you will be paying based on your credit history.
Apart from credit history, some of the other things which these websites focus on include whether you already own a house or not, whether you were ever late on your loan repayments, etc.
At the end of the day, you can't really count on loan comparison websites for anything else except leading you to various lenders around you. You will be much better off if you deal with these companies directly and run a background check on them yourself. Don't leave everything in the hands of a loan comparison website. After all, you will be the one repaying the loan, not them.