If you are considering any borrowing then you need to know a couple of things before you go putting pen to paper.
The APR for Financial Product Comparisons
A company will always claim that the APR that they have placed on a product is inclusive of all the costs; it never is. There are always going to be hidden extras and the sooner you realise this the better. Financial institutions use clever wording and other underhanded techniques in order to make a product look more favourable than it actually is.
As aforementioned they will always say that everything has been considered so that a customer can look at their product and compare it to similar products being offered by other companies. They never include everything, and by the time you have been charged for the likes of insurance and administration, and only brief you about it in the fine-print when the contract is sent out to be signed.
The Credit Score Issue
There are always nice big banners everywhere advertising this irresistible APR and it is only natural for people to assume that this APR is applicable to all and sundry. The truth is though that people who benefit for such rates are those that have a coruscating credit record.
Good for you if you do have an immaculate credit rating as you can get these deals, but for the people that have made the mistake of perhaps making one late payment it is a case of having to get a product with a far less favourable APR attached to it. You see this is the trick that the banks like to play. They get people interested and in their typically insidious, insipid manner, they turn a good deal into a not so good deal. people think ‘Oh well now I’m here I might as well…’
Make sure if you are about to get sucked into the ‘ostensibly good APR on a product’ vortex, that you speak to a person from the financial institution and you find out what the actual cost of a policy is going to be once they have actually added everything up and charged you what they had every intention of charging you in the first instance.