How to Compare Personal Loans: Key Factors to Consider 

When comparing personal loans, it’s important to look beyond just the interest rate. Here’s what you should be focusing on:

A. Interest Rate vs. Comparison Rate

The interest rate is the cost of borrowing money, but the comparison rate gives you the full picture. The comparison rate includes the interest rate plus any fees—like establishment fees, monthly service fees, and more. This tells you the true cost of the loan.

A lower interest rate might look attractive, but the comparison rate helps you see the real cost.

Fair Go Finance keeps fees low and offers transparent comparison rates, so you know exactly what you’re paying.

B. Loan Term

The loan term is how long you have to repay the loan. Shorter terms typically mean higher monthly payments, but less interest paid overall. Longer terms mean lower monthly payments, but you pay more interest in the long run.

At Fair Go Finance, we offer flexible terms that let you choose a repayment period that fits your budget.

Many other lenders that offer Payday loans often come with very short terms, leading to high repayments that are hard to manage.

C. Fees and Charges

Watch out for extra fees. Lenders charge a range of different fees, such as establishment fees, early repayment fees, or monthly service fees. These can add up quickly and turn what seems like a cheap loan into a much more expensive one.

Fair Go Finance offers clear and fair fees that won’t surprise you, and we don’t penalise you for paying off your loan early!

Payday lenders, on the other hand, often charge large fees upfront, making their loans expensive from the start.

D. Flexibility and Repayment Options

Some lenders offer flexibility when it comes to repaying your loan. For example, can you make extra repayments without penalties? Can you choose weekly, fortnightly, or monthly repayments based on what suits you best?

Fair Go Finance lets you choose your repayment frequency and make extra payments, so you can pay off your loan sooner and save on interest.

Payday loans typically require fast, high repayments, giving you less control and flexibility.

2. Example: Comparing Personal Loans to Payday Loans

Let’s say you need to borrow $2,500. Here’s a side-by-side comparison of a typical payday loan versus a Fair Go Finance personal loan.

Payday Loan:

• Loan amount: $2,500

• Establishment fee: $400

• Interest rate: 47.80% p.a.

• Comparison rate: 66.58% p.a.

• Total interest: $1,553

• Total repayment: $4,453 over 2 years

• Fortnightly repayments: Around $185

Fair Go Finance Personal Loan: *

• Loan amount: $2,500

• Establishment fee: $250

• Interest rate: 29.90% p.a.

• Comparison rate: 41.64% p.a.

• Total interest: About $815

• Total repayment: $3,565 over 2 years

• Fortnightly repayments: Around $137

What’s the difference?

With Fair Go Finance, you save $888 in total repayments compared to a payday loan.

Your fortnightly payments are smaller and more manageable, giving you the flexibility to handle your budget.

3. Personal Loans vs. Payday Loans: What’s Best for You?

When comparing loans, payday loans might seem like a fast and easy solution, but the high fees and interest rates can leave you paying much more in the end. With Fair Go Finance, you get a loan with clear terms, smaller repayments, and the peace of mind that comes with knowing you’re borrowing responsibly.

Here’s why Fair Go Finance could be the better option:

Lower fees: Payday loans often come with hefty upfront fees. Fair Go Finance has transparent fees that are fairer and lower.

Longer repayment terms: Payday loans typically have short repayment periods, forcing you to make big repayments quickly. Fair Go Finance gives you up to 36 months, making it easier to manage.

Avoid the debt cycle: With high-interest payday loans, if you can’t repay on time, you may need another loan to cover it, trapping you in a cycle of debt. Fair Go Finance focuses on responsible lending, helping you get out of debt, not deeper into it.

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4. Thinking About Debt Consolidation? Here’s How It Can Help

If you’re juggling multiple loans or credit card debt, a debt consolidation loan could simplify your finances. Instead of paying off several loans with different interest rates and due dates, you can combine all your debts into one manageable loan. Here’s why it works:

Lower your interest rate: Credit cards and payday loans often have high interest rates. A personal loan with a lower interest rate can help reduce the total amount you pay in interest.

One simple payment: Instead of keeping track of multiple due dates, you’ll have one monthly payment, making it easier to stay on top of your finances.

Save money overall: By consolidating high-interest debts into one loan with a lower rate and a clear term, you could save hundreds or even thousands of dollars in interest.

5. What’s Next? Compare Loans and Find the Right One for You!

Whether you’re looking for a personal loan for a big purchase or thinking about debt consolidation, comparing loans is the first step toward making the right choice. At Fair Go Finance, we’re here to help you find a loan that works for you, with clear terms, fair fees, and flexible options to fit your life.

Want to find a loan that works for you? Compare loans with Fair Go Finance today and discover how we can help you borrow smarter—without the hidden fees or surprises!

A Smarter Way to Borrow

When it comes to choosing the right loan, it’s about more than just interest rates. You need to look at the total cost, consider any fees, and choose a loan with repayments that fit your budget. With Fair Go Finance, you can rest easy knowing we’ve got your back, offering loans that are transparent, fair, and designed to help you move forward financially.

Disclaimer

^{The content provided in this article is intended for general informational purposes only. It is not intended to serve as medical, financial, or professional advice. The tips and advice shared are based on general knowledge and are not tailored to the specific circumstances of any individual reader. Always seek professional advice with any questions you may have regarding your health, mental wellbeing, or financial situation.}