UK Loan Comparison Websites Exposed – Useful Tool, Or Marketing Gimmic?Jacob
UK loan comparison websites, at first glance, seem like the obvious place to look for a low rate loan in the UK.
Since they advertise that they compare a large number of lenders, it stands to reason that, in general, they are expected to present the the lowest of the low low rate UK loan.
And if they are all so good to each other, there should be a high level of agreement among UK loan comparison sites as to which company should be crowned the one offering the “UK’s best low rate loan” in the United Kingdom.
So we decided to put this to the test and ‘compare a number of UK loan comparison sites’ and find out which one is the best or if all the proven UK loan comparison sites agree, so in theory It should not matter which of the ‘UK Low Rate Loan’ comparison sites you use to find the lowest APR.
Initially, we planned to test a much larger sample than taking Google’s Top 3 UK Loan Comparison Sites from our search, but it soon became apparent that using a Loan Comparison Site to compare different amounts, periods and products of loans (whether they are not safe personal loan or a guaranteed loan) actually requires much more time than we expected
So in the end, we only looked at the top 3 loan comparison services, according to Google (in terms only of the order that Google placed them in response to our search term).
At first glance, uswitch.com would appear to have the advantage, in terms of being, when we tested, more dominant among Google’s search results than its peers.
We were also impressed by the high ranking in Google search results of moneysupermarket.com and moneynet.co.uk
So the next thing we did was compare these ‘UK loan comparison’ websites in terms of their recommendations. We analyze a UK unsecured loan of £ 3,000 over 3 years, £ 5,000 over 5 years and £ 10,000 over 5 years.
One of the first things that became immediately apparent was that almost all lenders (returned by search) based the actual interest rate that you would actually end up paying, on your application credit score, so you won’t know what rate Interest Rate You are expected to pay until after you have applied for a loan, and after the lender has registered a search with credit reference agencies for your address. (So what’s the point in comparing interest rates that might not apply? Hope to hear you ask!)
To be fair, Moneysupermarket seemed to have a tool to ‘do a quick check’ of your creditworthiness without leaving a trace in your records; others can also have this facility, although we do not detect it immediately. And it was not clear if the Moneys Supermarket facility would influence the loan decision of their chosen lender in any way.
The big things they focus on are if you own a home and if you have county court judgments or a history of late payments on a UK loan you have had in the past. – UK loan comparison websites are also interested to know if you want to prioritize your search to see those facilities available through them.
Call me cynical, but I couldn’t help but wonder if I was presented with more loan facilities that would pay the best commission to the UK loan comparison website for my click and request, than the genuinely better lender. (But as I say, call me cynical!)
Call me ‘double cynical’ when this was reinforced by my search results for an ‘unsecured loan’ containing (for loans over £ 5,000) ‘guaranteed’ loan listings, temptingly placed among the search results for unsecured loans! – but I can’t tell you where this was, because his legal department is bigger than mine!
At least it was reassuring to see that zopa.com stood out highly with all three UK loan comparison sites, and if you are looking for a low rate loan in the UK it looks like it is an excellent low rate loan service at the United Kingdom ”. ‘in traditional banks and direct lenders, which is worth visiting.
All that said, Moneysupermarket.com has a good feature, which shows the acceptance rate of the different products on offer and the customer service rating of the different companies. Among these, the Moneyback bank appeared to have a particularly high rating for acceptance and service, although it was unclear how this rating had been reached.
In summary, and of course I would say, “look at what the UK loan comparison sites have to offer”, but whatever you do, check their advice with a variety of lenders independently, before taking a decision on where to apply
UK loan comparison sites may highlight lenders you hadn’t even thought about, but my advice to you would be to ‘be a healthy cynic’ and take any online advice and easy ‘shortcuts’ for loan search with a serious pinch of salt! – This is an area where, despite the Internet, you will still have to do a lot of field work yourself.