Why consumer trust in cash loan comparison sites is at a new low

picLooking for a cash loan? Choosing a provider may be more difficult than you think if you use a comparison site, a Which? Report suggests.

Recently, the popularity in comparison sites has soared. No longer do we need to visit our local bank and have a meeting with a financial advisor to ask them for a cash loan. Instead, we are taught that it is easier to enter your details onto one of the four biggest comparison sites, like gocompare.com, and immediately receive the best deal in an easy to read format. From there, you can receive a great cash loans option, with millions opting for Wonga.com. In fact, many of the biggest cash loan providers will appear in your results list; Wonga.com is just one example of a cash loan provider that you may see appear. From there, you just click through to their site, and go and get your loan.

Are cash loans comparison sites the best method?

The new Which? Report has suggested that only a third (32%) of members said they trusted price comparison sites to find the best price, regardless of the supplier. When receiving a cash loan, choosing one with the best interest rates is essential in order for you to repay the loan as quickly and easily as possible. If comparison sites essentially don’t give you the best price, and it is better to shop directly, then comparison sites may not be as useful as we once thought.

One of the great things about comparison sites is that they offer you speed, and in this modern age, finding extra time to do anything other than shopping is important. However, the report found that Which? members who used comparison sites visited an average of two sites before making a decision, and one in eight (13%) felt they needed to visit four or more sites to get the best price. Is this really the best use of your time?

It could be argued that visiting suppliers directly could still be your best bet. Of course, it is still best to shop around to get the best price, but approaching suppliers directly could be a better way to receive a good deal – especially if you call to the company and talk to them in person. Using a comparison site quote as your ammunition could further enhance your case as many companies will want to match a price quoted elsewhere.

And remember, price isn’t everything. Many people might not choose the best price when comparing cash loan providers, but may also consider the size of the company, their repayment methods, the speed in which they would receive the loan and so on. Price isn’t everything – but if course it is a huge factor for many, especially when considering interest rates on cash loans.

The answer? Shop around, be savvy, and don’t take anything at face value. Take time to consider your decision and by all means use comparison sites, but don’t rely on them to always look out for your best interests.

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