Financial comparison of loans installments
Financial comparison of loans. Is it worth using it? There are many ways to find and compare financial products on the internet, not just loans. There are, after all, websites that offer a useful tool to help you make the right decision.
But only a small fraction of all these websites are professional websites offering a comparison of product offers and financial services. Why? Because it involves very large costs of running such a website. Indeed, such entities earn on commissions from the sale of products, but it is also the need to put valuable information created by a large group of professionals, often experienced journalists, and it costs.
Financial comparison websites enable comparison of such financial products as: mortgage loans, cash loans and loans, auto loans, consolidation loans as well as credit cards and bank deposits. An example of a comparison engine provided by bankier.pl: a comparison of cash loans.
Financial portals also contain an educational part, in which we can find guides on saving, rational and responsible lending or explaining individual loan products.
Popular loan and financial comparison websites offer their users specific financial solutions, but is it always the best source of knowledge and information about financial services? Not necessarily, because websites seeking to maximize profit can promote those financial products that are the best of their business point.
Professional financial comparison of loans
What should the best financial comparison engine characterize? What factors influence such an assessment? Certainly such a comparison engine should be constantly updated and reliably present data. This is not an easy task, due to the specificity of the compared financial products and the financial situation of clients. It is not possible to create the best and reliable credit rating for the whole group of clients. No comparison engine takes into account the consumer’s creditworthiness and credibility. And both these factors have a very large impact on the attractiveness of the offer.
Each company that provides a product, which is a financial comparison engine, focuses on the objectivity of the offers presented. But is it always like that? Can we be sure that a given comparison engine is independent and tries to present data objectively? As already mentioned above, such companies are focused on generating profits and not necessarily product No. 1 in the comparison engine will actually be the best offer.
Similarly, many people who can be consulted on the Internet regarding financial and credit advisors report similar objections. To what extent is such an adviser independent and presents us with the best loan offers?
Comparator and credit ranking
Practically all the comparison websites, well, except for one or two “black sheep”, present offers – let’s write in the “rankings” – in a clear and legible for every user, showing: loan installment, commission, nominal interest rate, insurance required and APR. And now the main thing is: how much is the data presented real?
If banks offer nominal interest rates with a standard offer the same for each client, then there is no problem. But if it is a promotional interest rate, variable, depending on the purchase of an additional banking product, then such an option will no longer be included in the comparator or presented to a limited extent.
The same applies to commission . Virtually in any of the banks we will not find one standard commission. Banks set the commission very often individually, and in the table of fees and commissions, the possible range or information about the commission is not found! In the credit comparison engine, the search results of the representative example are given in the search results.
Large websites that provide financial comparison engines, however, try to explain the complex financial world. Do you know what is the loan margin, loan rrso, BIK and BIG, nominal interest rate, when to choose a cash loan, and when to use a mortgage? We often find answers to such questions in these types of websites.
Comparing services and financial products
The best possible comparison of products available on the financial market is very important from the point of view of the consumer. It is possible to choose a cheaper loan or the best bank deposit.
The most common comparison among credit products is the comparison of cash loans and mortgage loans. The second group consists of bank deposit comparison engines and a bank account comparison engine (or a search engine). We can definitely find comparators for consolidation loans or car loans. Not because of the lack of offers, but because of possible credit options. For example, consolidation loans can be divided into cash and mortgage consolidation loans and a harmonized comparison of these loans is no longer possible.
The best financial comparison engine
Comparators are often also called bank comparators or, less fortunately, loan installment calculators. While the first name, “bank comparison engine” is the most desirable and should rather replace the “loan comparison engine”, the second option may be misleading.
The loan installment calculator ( loan calculator) suggests that using such a tool, we will calculate loan installments. Unfortunately, we will not enumerate. The amount of loan installments, apart from interest and commission, also depends on the creditworthiness and creditworthiness of the consumer. And these factors are not included in any calculator (comparator). This is not possible at this stage. When checking the client’s creditworthiness, the bank must download data from the Credit Information Bureau and, based on the credit history, evaluate the potential lender. A customer who has a higher credit rating by the bank can count on a much better offer. In addition, each loan offer can be negotiated.
As can be seen from the above findings, the loan comparison partner is not a loan installer, but only estimates their amount and provides basic information about loans. For this reason, financial comparison websites should rather be called bank comparators, because their general assumption is to provide basic information on financial products of banks. A separate matter is the comparison between loans and loan companies.
Each such financial comparison engine is very easy to use, because you only need to provide basic parameters such as credit and the comparison engine will search for banks’ offers. The next step is only sending a contact form to a bank or financial advisor (or submitting a loan application if it is a loan via the internet). Then you just have to wait for the contact from the advisor. Sending the form, of course, does not oblige us to use the offer of a given bank.
Access to financial comparison websites is free and everyone can use the information available in the given website. There are exceptions, but there is no point in using paid content provided on websites.
The first financial comparison engineers were of course created in the United States, and the idea was relatively quickly adopted (with more or less success) on the Polish market. Lack of sufficient knowledge about finances and the number of bank offers very often make it impossible to compare financial offers. In this case, the consumer is “condemned” to the need to use such tools. Remember that the comparison engine will not objectively assess the best offer, will not choose the cheapest loan for us, and can only be a help in choosing a specific offer.