4 Ways to Compare Online Loan Rates

Online personal loans can be a great way to consolidate debt or get money to start a business. However, a responsible borrower looks for the lowest possible interest rate before borrowing money. Therefore, it may be a good idea to compare rates before choosing a lender. How can you do this?

1. Use Online Loan Comparison Sites

The use of online comparison sites makes it easy to find two, 10 or 20 different quotes on one screen. Most sites allow you to filter out search results based on your needs to save time and effort. Once you find a quote that you like, you can go ahead and start the formal application process. It is important to note that such sites generally offer estimates based on information that you provide. Therefore, the rate that you are actually offered may be higher or lower once the loan application is approved. Check out Northcash if you would like to learn more information.

2. Use a Broker Instead of a Lender

When shopping for installment loans or other loan products, it may be a good idea to use a broker instead of a lender. This is because the broker will send your application to a variety of lenders and report back to you. In a matter of minutes, you can have multiple lenders competing to get your business. Typically, this competition results in lower interest rates and other favorable terms.

3. Request Quotes From Lender Websites

Although this may be more time consuming than the other options, it can still be an effective method of comparing your options. For those who may be more compulsive when it comes to borrowing money, looking over quotes individually may be beneficial. This is because you are forced to spend more time mulling over loan terms as opposed to simply looking at several offers and choosing one in a matter of minutes. Online lenders may also offer live chat or other options to help you learn more the rates that they offer before filling out an application.

4. Compare Rates Listed on Advertisements

If you are on a site or blog that deals with loans or other financial topics, you may see loan rates advertised on that page. In some cases, multiple companies may list their rates or estimates based on a generic credit profile. This may provide you with enough information to favor certain lenders over others or help you decide which ones to talk to before applying.

Getting the best loan rates takes a bit of detective work on the part of the borrower. The good news is that there are tools available to make this search easier. It is also possible to talk to lenders directly to have your questions answered.