When we are choosing a lender it can often be tempting to pick the one that is the most well-known. We might feel that we can trust them more but is this really a sensible idea?
Why are they well-known?
It is worth starting by thinking about why they are well-known. It might be that you have heard of a lender because they have a local branch or because they advertise. This will help their name to be more well-known but does not really tell you much else about them. It might be more likely that you know you have heard of them but you do not know why. This could mean that you have heard bad things about them but because you cannot remember why you know their name, then you could be putting your trust in someone that you should not be. It could be that a person you know used them and had a bad experience or they may have had a good one but if you cannot remember why you know them then you cannot be sure either way. Therefore, the fact that you have heard of a lender may not be a positive thing. It might be that you have heard bad things about them and so you need to consider why you have heard of them. If you cannot be sure, then it is worth ignoring the fact that you have heard of them and pretending that you have not when you are comparing them.
Will they charge less?
It can be tempting to think that if you have heard of a lender they will charge less. You may think that if they are well-known it will mean that they have more customers and therefore that will mean that they will be able to charge less as a result. However, this may not be the case. It could be that they advertise a lot so that people know their name. This costs money and so they will have to charge more in order to cover those advertising costs. They will hope that because people have heard of them and therefore might feel they can trust them better, that they will be prepared to pay more. They may also hope that people will assume that they will provide a good service because they have a well-known name. However, because people have heard of them and many will not know why, they can afford to not treat their customers that well as they have such a large proportion of the market who potentially will pick them.
Is reputation important?
It is worth thinking about whether it is good to pick a lender with a good reputation or whether it does not really make a lot of difference. It is worth considering that what some people like and dislike about certain lenders will not be the same as what you like and dislike about them. You will need to think about what you want form a lender and whether the ones that you are comparing have what you are looking for. Whether they are well-known will not make a difference to the other features and factors that you are comparing. It is likely that you will be interested in the price, the terms of the loan, how quickly it can be arranged, when you have to repay it and what their customer service is like as well as other things. Whether you have heard of them or not will not make any difference to these things and so it is best to forget about this.
So, it is important to be aware of the fact that even if a company is well-known it does not mean that they are good or cheap. It is best to investigate them, as you should all lenders and come to your own conclusion based on the factors that are important to you. Think about what you think is important in a good lender and then you can use those factors to judge the different lenders that you are considering. It is best to use the things that you feel are important rather than considering whether they are well-known or not. There must be well-known brands that you are not keen on and this could be the same with a well-known lender. Of course, after research you may find that it looks like the most well-known will be the best one for you. This is fine, but just do not base your whole decision on whether they are well-known or not but take some time to check them out and think about what it is about each that you like and dislike. Then you can be confident that you have picked the very best lender to suit your specific lending needs.