Educate yourself about the market. Understand what you are buying. A loan is just another product. Many people don’t understand how commercial lending works. Know your rights. Do your research.
In the UK some lenders may offer flexible deals allowing the borrower to make under or over-repayments. If flexibility is the higher on your checklist of priorities you should find a lender that will offer you such terms.
Be aware of the fact that a lower rate does not always indicate a lower cost. There are a number of factors that combine themselves to calculate the total cost. For example, in addition to the interest rate, you should consider the additional borrowing costs (often stated somewhere within the small print section), as they may be high enough to make the loan dearer than you thought. Typical examples of these additional costs are payment protection schemes, which vary from lender to lender.
A secured loan is much easier to get than an unsecured, personal one. A secure one is secured against your house; valuable property. Unsecured means they take a look at your credit status, and give you an APR based on it. Secured loans are so desirable, and easier for a broker to ‘place’, versus unsecured ones, that many lenders say ‘no tenants’; they don’t want the bother of dealing with what are often near-charity cases. Secured loans tend to be for higher amounts; also desirable from the lender’s point of view.
However, you may be surprised to learn there are lenders out there eager for your custom, if you have bad credit. Why? Because they can make more money from you! This is especially true if you’re borrowing to buy property, or a car; the debt is secured against a good that can be sold off if you get into difficulties. They get their money back, regardless.
Rate the deals you come across, to keep track of the ones you like the best. This will keep everything in order for you. Rate loans on what you need, want, and their terms. This removes your worry of remembering if auto loan 7 or 8 was your favourite.
Pay little attention to advertisements. If you are going to read ads to find loans, be careful. To tempt people, they will list the most attractive features. They will leave out the biggest problems. If there are business addresses with the ad, drive by the company before speaking to the sales staff. Where are they based, and what do their offices look like?
Try to find companies that are 100% dedicated to loans, because their earnings come exclusively from lending money to others. A bank, on the other hand, has several different ways to earn money. Usually, finance companies and online lenders can offer better deals on business loans than banks or building societies.
Just be persistent; try different lenders until you find the best deal possible.