3 Key Things to Look for When Comparing Loans
July 14th, 2015 by Lette Berhe
The world of loans may seem intimidating at first glance, but by educating yourself it becomes a lot easier to manage. By using our Loan Comparison Tool your loan search will be narrowed down to provide you with lenders that work with your citizenship status and your school. Although, we make the process of finding a loan simpler, when it comes to comparing loans what is it that you should look at? Below are 3 key things to look for when comparing loans.
1. Low APR
APR stands for annual percentage rate; although represented as a percentage it should not be confused with your loan’s interest rate. The APR is usually higher than the fixed or variable interest amount that the loan offers you because in addition to the interest rate it takes into account additional fees (origination, disbursement, application), length of the deferment period, and how interest capitalizes. Often times lenders will provide you with an attractive interest rate, but not mention what fees may be found in the fine print. The usage of the APR system was required by the government to protect individuals from bad loan practices from banks. Your loan is a long term investment, so using the APR is a better way to quantify the real costs of loans and a lower percentage means the less you´ll be paying in the long run. Read the rest of this entry »