Regardless of whether you are borrowing for the first time or have borrowed several times before, it is always very important to compare the different lenders before submitting an application. However, it feels like many do not do this properly. hottoast.org for a critique
There are a lot of lenders on the market
The first thing that I think of as a sign of this is that there are a lot of lenders on the market and that their prices vary widely. If you compare, for example, with mortgages that are a very competitive market, there are a number of lenders and all their interest rates are close to each other.
Goodbank, for example, would not be able to raise its interest rate by 1% if everyone else did not do the same, who would borrow from them isf?
If you look at the micro-lending industry
You immediately notice that there are many players, although some companies have more than one brand. Prices are then very variable, which indicates that it works to take high prices for loans. After all, these companies would not be left if no one borrowed money from them.
When I do a quick check in our comparison of micro loans and then examine a loan of USD 5,000 for 60 days, I find that the difference in the price between the cheapest and most expensive lender is just over USD 1,000. Then we talk about a loan that is in every appreciable way exactly the same. If you go up to USD 10,000 for 90 days, it actually makes over USD 2,100. And there is, like no other reason, to spend this extra cost on the loan.
The company that charges the highest prices is quite large in this industry and they absolutely could not do this if no one borrowed from them. The question is why they get customers for my only half-realized view is that they are also one of the companies that have the most stringent requirements for approving an application.
My conclusion is simply that borrowers do not compare prices
As well as they should. Because if you ask a question straight out, I am extremely doubtful that many would rather pay the double price for a similar loan. Who would buy the product that is identical to another one at ICA if it cost twice as much? But it apparently works for loans which is a bit boring.
So the simple answer to the question heading on this blog post is that you can save a lot of money comparing micro loans. An answer almost like anything else.