You may wonder whether there are really that many differences between guarantor loans and whether it is worth all the hassle it will take to research them. It is actually something that takes time and effort and though and you may just be tempted to go for the first one you come across as it is easier and not really worry about comparing. However, there are differences between lenders and you will find that it is well worth comparing them because those differences will make a significant impact on how much you pay and what experience you have.
Cost
The cost of the loan is likely to be the thing that is the most important to you. You will normally find that the cost will include the interest that is charged on the money that you borrow as well as some fixed fees. These can vary between lenders and it can also depend on how long you borrow for as to how much you will pay as if you borrow for a longer period of time, the loan will accumulate more interest and you will end up paying more money for it. It can therefore be tricky to calculate exactly how much you will pay for the loan and so it can be a good idea to ask the lender to calculate it for you. Then you will be able to compare each loan and you will have an idea of how they compare. It is a good idea to think about that cost and what you are using the loan to pay for and think about whether you think that it will be worth paying that money for that loan to buy that item. For example, if you are borrowing to buy a car and the loan will mean it costs a few hundred pounds extra, imagine if that car had cost a few hundred pounds more and whether you would have agreed to pay for it had the ticket price been that much.
Repayments
It is really important to be very careful with regards to repayments with a loan. You need to make sure thatyou can afford to repay them. Even if you have a guarantor that will make the repayments if you cannot afford them you should still try to repay them yourself. It is a really good idea to do this for several reasons. Firstly. It is likely that you will not want your guarantor to have to make too many payments. They are likely to be someone that you are close to and it is likely that you will want to pay if you can. Also, if you miss a repayment it will show up on your credit record even though the guarantor makes the payment. Therefore, you will need to consider this carefully as it is a good idea to make sure that you credit record stays as good as it can or even improved, rather than gets worse.
Customer Service
The way that you are treated as a customer can be especially important if you have a question or query or need help of some sort. This is something that could possibly happen to you and so it could be important to make sure that you will be treated well and so you will need to customer service department to be available when you need them, polite and helpful. You may also want to extend this to making sure that the lender is trustworthy and that you like them. It can be worth reading a few reviews of them to find out a bit more and looking at their website so that you can get an idea of what they are like before you borrow money from them.
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