Often when we buy things we will pay more money sometimes because we want to get better quality. We might therefore feel that something that is more expensive should always be better quality. This might lead us to always buying more expensive brands and we may therefore decide that we should do that with everything that we buy including loans. But is this a good idea?

Value for money

It is really important to understand that value for money is what we should be looking for. We should be finding a product that we feel is worth what we are paying for as well as fulfils what we require. For example, if we pay very little then we may not get good customer service, but to us that might not be important and so it could represent better value for money than a dearer product with better customer services. It is therefore really important to think about what represents good value for money for you. Some of the things that you might pay for if you buy the most expensive item might not be things that are useful to you. For example, you might be paying for a famous brand name which makes no difference to the quality of the product or you might be paying for a company that has lots of local branches when you are happy with dealing online. So think about what you want for your money and whether you will actually be getting that when you are taking out your loan.

Loans features to look out for

Therefore, you need to identify which features of a loan you are interested in. You need to think about how important each thing is to you as well. Most people will think about the cost first. They will want to make sure that they are not paying more than necessary but they may not want to pay too little either and risk other things not being so good. It is important to make sure that you are comparing costs properly, so calculate how much the loan will cost you over the full term and make sure that you include any fees as well as the interest. It is also important to look at how much you are expected to repay and when. You need to be sure that you will be able to afford the repayments.

You may also want to look at the lender and find out more about them. Think about their reputation and whether you are happy with using them. It can be wise to ask people you know about who they have used and whether they would recommend any companies and also to think about looking at online reviews too. It can also be useful to take a look at their website and see what feeling that gives you for the company and perhaps contact their customer services to see how helpful and polite they are. This can be a great way to find out a lot more about the lender, as often we do not really know that much about them.


It is really important to think about whether you can afford the loan. Even if you feel that the most expensive one will give you the best value for money, you still need to ensure that you can make the repayments. There is no use in getting the best quality product if you cannot afford to repay it and then end up having to pay extra charges as a result. So do make sure that you look carefully at how much you will be expected to repay and when and then look at your bank statements to ensure that you would normally have enough money in order to afford those repayments. If you feel that you will struggle to repay, work out whether there is a way that you could spend less on other things or earn more money so that you can afford it or whether you will just have to choose a loan with more affordable repayments.


So although it might seem to make sense that you will get a better loan if you pay more for it, you do need to be careful. It is really important to make sure that you are confident that you will be able to afford the repayments for any loan that you sign up for. This means that you may have to take one that you feel does not offer such good value for money but you will not risk not being able to repay it if you do this. Obviously, it is also useful to look at other features of the loan as well, but your ability to repay is the biggest influence here. It can be a difficult decision but it is well worth spending a lot of time considering it as it is a big decision and could have a huge impact on your future finances.