loan comparisonGetting a loan to help your finance your home improvements needn’t be a time consuming process. In fact, it can take a matter of minutes to find a deal that you like the look of and make the application.

However, it is important that you don’t rush into anything, and that you always read the small print. What looks like an unbeatable deal at first glance, may involve fees and expenses that are not immediately apparent.

As with anything related to finance, if it seems to be good to be true, it is. So, how can you be sure that you are getting the best possible deal; one that won’t leave you with unforeseen costs?

Always compare!

Only by making comparisons between different loan offers can you truly get a good idea of the best options available to you. You should not only compare the offerings of different lenders but also try and look at alternative time periods, or even the amount that you intend to borrow. A slight adjustment in any one criteria could result in a significantly different APR.

The internet has made making loan comparisons a simpler and much quicker process. Whereas in the past it would have been necessary for you to go out and speak to each lender individually, providing the same information again and again, nowadays you only need to enter your details once and a wealth of great loan deals can be made available to you – and you don’t even have to leave your front door!


What to look for when comparing home improvement loans

When you enter your details in order to compare home improvement loans, you will be asked to include some key pieces of information. As well as your name and contact details, you will need to specify how much you would like to borrow and the time period in which you would like to pay it back. You may also be asked to give an indication of your credit profile. If you are at all worried that your credit rating may be anything other than good, i.e. fair or poor, you can check your profile yourself (see Home Improvement Loans for Bad Credit for more details).

You will also be asked to confirm that you are a homeowner and to enter the estimated value of your property as well as your current mortgage balance. This is so lenders can have a clear understanding of your financial situation and credit-worthiness. Providing you have the pieces of information to hand, the whole process should only take a few minutes.

You will then be given a list of loans that are available to you. Typically, the loans with the lowest APRs will be listed first. If nothing appeals to you at first glance, you can always go back and make adjustments, either to the amount you intend to borrow or the time period in which you wish to pay it back. This could result in loans with more favourable APRs being offered to you. As a general rule, loans of smaller amounts and shorter payback periods tend to have bigger APRs.

Remember, you should not always expect to be offered the great deals that the lenders advertise. These advertised rates are dependent on your circumstances and by no means are they available to everyone. Those with a poor credit rating should certainly expect higher APRs than those advertised by lenders.