If you are looking for an online loan, you may feel rather overwhelmed because there are so many different ones available, Although this is a good thing as competition can tend to drive down prices and you have lots of choice, it can make you wonder where to start with regards to looking for the loan and finding the right one for you. There is an approach that you can take though which will make it easier. It can be a good idea to establish exactly what you need in a loan and then you will find it easier to match up with the one that will provide you with the best value for money. You may have some ideas of what you are looking for, but hopefully this list will help you to consolidate your thoughts and decide which of these, plus any other features, will be most important to you.

Interest Rate

Many people will start off by looking at the interest rate of the loan. While this can be something which is interesting, it is important not to get too carried away by looking at this. This is because you will find that the interest rate can be a confusing way to compare loans. There are different ways of presenting the rate, one which is just the interest rate and one which incorporates the fees and if you compare them then one will be much more expensive but the cheaper one may be dearer once the fees are allowed for. So, you need to allow for both.

Fees & Charges

Comparing fees and charges is therefore important. It can be worth finding out how much you will pay in pounds for the loan and then you can compare them on price. However, you also need to be aware of other charges that you might come across as well. For example, if you miss a repayment then there will be a charge. You may think that this will not apply to you, because you will repay on time, but it is worth checking it out just in case. You could find that there is a really big difference between different lenders with regards to how much they will charge for this and so it could be a good idea to check this out. You will also see how high they are and that might encourage you to make sure that you do make those repayments on time.


It is wise to find out how much you will be expected to repay and when. This is so that you can make sure that you will repay on time. Do not just look at the figure but actually think about whether you will be able to afford it. The way to do this is to examine your household expenses perhaps by looking at your bank statements and see whether you can afford it. See how much you normally have coming and what you buy and you will be able to calculate whether you will have enough left. It might be that you will able to cut back in some areas so that you will be able to do this.

Customer Service

Some people also like to make sure that they get a good customer service for the lender. It can be nice to know that if you go to them and ask for help, that you will get it. For example, if you have a question or problem, you know that it will be easy to get in touch with them and that you will get a friendly, polite and fast response. You can test this by contacting them before taking out the loan and seeing hat sort of response you get.