How to Compare Loan Rates for the UK
Comparing loan rates in the United Kingdom can be a fantastic way to save potentially thousands of pounds, if not more. Many people stick to familiar lenders like the bank that they use for their checking account - or the ones with the flashiest marketing campaigns - rather than to secure loans from the most competitive creditors.
- Difficulty:
- Moderately Easy
Instructions
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Negotiate with your bank or other major creditor. If you already have loans with a particular company, they will be more likely to give you access to competitive rates. This can help save you the time of shopping for other loans, as many customer service representatives are authorized to lower their rates in order to retain already existing customers. Major UK banks like Barclays often have many different loan rates available - some of them freely advertised, and other rates that you'll only be able to get through negotiation.
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Look on the web for loan comparison websites. Money UK is one good example. Most financial planning programs also have a built in service for looking at your financial accounts, outstanding loans and credit rating and suggesting loan products to you.
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Contact a credit counseling service such as the Consumer Credit Counseling Service, a registered UK charity. Many credit counseling services can help you consolidate your high interest debt into single lower-interest loans. They may also be able to give you access to low-interest loans that you otherwise wouldn't be able to get .
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Improve your credit rating. A higher credit rating will get you access to lower-interest loans that you would not otherwise be able to acquire. If you are not certain what your credit score is, visit a free UK credit reporting service like Annual Credit Report UK.
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Contact a professional financial planner. One of the easiest ways to get in touch with one is to go through a professional organization such as the UK Institute for Financial Planning. She will be experienced in comparing loan rates, and may be able to get you access to deals that are not publicly advertised. The more information that you come armed with before choosing a loan, the more likely that you are to get the lowest rate that you possibly can.
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