Let’s be fair, APR is probably the only way to make a sensible comparison between different loans, but it may not show the complete picture or true cost of borrowing especially if your chosen loan comes with hidden costs or fees, eg a change of DD fee or a change of payment date or bank fee; missing a payment charge; the list with some loans is endless and these costs, because they are not predictable are not part of the APR.
So, look only to compare loans with no fees or charges, or if you pick a loan with fees and charges because of a stated low APR, make sure you stick to the loan agreement, especially the specified repayments and avoid “chargeable” changes. In any event, it is always best to maintain regular payments and stick to the terms of any loan; but we know there may be a wobble along the way and some lenders cash in on this; Lendfair won’t.
You should also be aware that if an APR is quoted as variable, if interest rates go up, so may your loan repayments and the APR. So, look for loans that show fixed rates of interest where you are protected from interest rate rises.
www.lendfair.co.uk No fees, no charges – ever! Fixed interest rates – always!