How to Compare Loans with Banks
- 1). Check online to compare loan rates at the different banks in the area. Another alternative is to call and check, but you can save money by narrowing down the search using the Internet to finding the best new rates.
- 2). Call the banks or credit unions with the three best rates, as well as the bank or credit union you currently have an account with. Ask if they offer a discounted rate for automatic payments or direct deposit, and if you could qualify for that lower interest rate right away.
- 3). Compare any application or closing fees associated with the loan. While a fee may seem like a lot, if it will get you a significantly lower interest rate, then it may be worth paying up front at the beginning of the loan. You can check online with a loan calculator to find the difference in what you would pay in interest over the life of the loan. If the fee is more than the difference then do not go with the loan with a higher fee.
- 4). Read online reviews of the bank or speak to friends to see if they have had positive dealings with the financial institution you choose.