Why Your Bank May Not Give You the Cheapest Personal Loan

Why Your Bank May Not Give You the Cheapest Personal Loan

Your preferences . seem to be the natural thing to do by applying for a bästa låneförmedlare loan for the current bank. But the fact remains that the best deals could possibly be available somewhere else. As banking in Australia begins to resume normal following the global financial crisis, more and more lenders are coming into your car loan market and the deals are getting more competitive.

Just about every bank has its own range of lending products, but interest rates and conditions are reviewed constantly. What is advertised as a competitive rate 7 days may not necessarily apply in a few weeks time, so it’s likely a safe bet to ignore newspaper and television promoting!

The problem is, you will never know how competitive your bank is soon you get a quote and then compare it with other prospective financial institutions in the market. Whilst it is true that banks want to give more competitive products to their existing customers, it is not generally possible for them to do so. It is also a false belief that much larger banks can offer better rates. Many banks capitalise on this consumer idea and may actually charge their customers a higher rate than some might obtain somewhere else.

The bottom line is this: don’t believe the advertising and don’t believe the hype. Bigger is not always better.

The only way to ensure you get the best and cheapest car loan is to find out what different lenders have to offer before you make your decision. Here is what you can do.

Work out exactly how much you are willing to pay in monthly loan repayments. This might involve doing a budget before you work it out but it could be the finest few hours you spend in your life. Living within your means gives you comfort, so don’t be tempted into borrowing more than you want to, regardless if the bank tells you they are willing to lend you more.

  • Upon having worked out your monthly budget and you know exactly how much that you are prepared to spend, it’s time to hit the lending piste and work out exactly what each lender’s loan is going to run you per month. Remember to include not just the monthly repayments but any ongoing fees plus application fees, legal fees, pay out fees or documentation fees that the lender is going to cost you. This is the only way you will know exactly how much you have to borrow considering that the lenders will package all these fees into the loan total and work out the monthly repayment from that total.
  • Should not tempted to pay extra per month to borrow that tad bit extra. Stick to your budget and make sure your monthly repayments should not be any more than what you initially decided on.
  • Going to your existing bank is a wonderful place to start looking for car loans as long as you don’t expect the best cope. Shop around and do the figures first and you might get an agreeable surprise.