Over the past ten years the banking industry has had a real wake up. Aside from the crashes, the highs and low of director bonuses there are far more pressing matters that effect the every day man on the street so to speak. What topic am I referring to exactly? Well allow me to explain.
For many years the principal of banking has been a simple one. They attract investment from customers via deposits and they lend the same money out again in the forms of loans and finance in all its many forms and guises. The trick as far as the banks are concerned is to lend at a profit, and in order to do that they need to ensure they can calculate their margins correctly.
Such is their drive to feed their investor pots that they have formulated many ways of masking how much they are profiting from lending you money. From free balance transfers with fees attached of course to mortgage set up fees and penalties if you repay loans early. Banks really have this down to a mastered art.
So what can you as the consumer do to beat the banks at their own game. Well the best tools indeed are ones that compare many offers against each other such as online loan calculators. These are by far a more sensible way of assessing the true cost of lending money than to sit with an advisor in your bank. Remember the banks only sell their own products and they couldn’t care less if it’s in the best buy table when they have you sat in front of them.
It’s a myth that your bank will offer you a competitive rate just because you’re a loyal customer. In short loan calculators remove the uncertainty in lending by comparing a huge number of offers side by side and allowing you to make a far more informed decision about who to lend from and for what sort of term fits your circumstances best.
Its is misinformed to just use APR as a way of working out how much a loan will cost you and whether or not one stacks up against another. There are many factors to consider such as fees, repayment charges, loan length etc. The great thing with loan calculators is they allow you to compare these products warts and all, side by side and get your self truly a deal you can believe in.
Online Loan calculators are now appearing everywhere and spreading into every sector. From insurance to banking, to phone contracts or car hire. Where there are choices to make there will be a calculator to help you make an informed decision. Use them correctly and you stand to save a whole heap of money. I would even go as far as to say loan calculators are forcing lenders to compete even harder for your business and that can only be good for consumers suffering at the hands of corporate giants with their interests at heart.