Loan companies - Find the best loan company

There are so many loans available it can be hard to find the best product – and provider – for your needs. Here’s our guide on what how you should compare different providers, and the key factors to look out for.

High street banks and building societies

Pros:  Many have branches throughout the country, which means you can speak to someone in person about your loan. Most providers will also allow you to manage your finances online.

Cons: High street providers often charge more in interest to cover the costs associated with a physical branch.  As many banks and building societies are closing branches, you might find it more difficult to be seen in person. Some providers will stipulate online-only for their best deals. 

Online banks

Pros: Because they have fewer overheads, online-only loan companies are able to offer a lower interest rate. Many of the lowest rates around are online only, whether that’s with a digital provider or a high street bank.

An online account means you can easily manage your finances, setting up or amending direct debits and checking you’re on track to meet your goals. Many online accounts also have a phone helpline for when you need to speak to someone.

Cons: Online loan companies have no branches, so you can't pop in and conduct your banking in person. Also, some of them are less well established than high street lenders.

If you'd rather borrow from a big-name bank, you might be tempted to opt for a high street loan (which might be more expensive), but did you know that most online banks are owned by high street lenders? For instance:

Choosing your loan company

Once you've considered what type of company you'd like to borrow from, the best way to choose your loan company is to shop around. That’s because the interest rate you’re offered will determine how much you pay each month. You can do this by using the Uswitch.com loans comparison service.

The comparison service will ask you a series of simple questions about the type of loan you're looking for. It will then perform a search of the loans market to give you a comprehensive list of those that suit your personal circumstances.

Shopping around in this way can save you a fortune in interest payments, as all loan companies caters for a different type of customer.

Read more …

• Compare Loans: Step-by-step guide| Uswitch

• Loans explained: all you need to know

• Loan rates - how to get low interest loans