Loan comparison sites
When you are weighing up a loan, the worry is hidden costs and whether the rate you were quoted is the rate you will actually pay.
Companies in Loan comparison sites
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About Loan comparison sites
Loan comparison sites are online services that let borrowers see several lending options side by side in one place. They cover personal loans, car finance, debt consolidation loans and other forms of consumer credit offered across the United Kingdom. Some use a soft credit search to show indicative offers before a full application is submitted.
Most of these sites earn their income from lenders or brokers who pay a fee when a user is referred and an application is made. The category includes both independent price-comparison platforms and sites run by credit brokers that match applicants with a panel of lenders.
The market is overseen by the Financial Conduct Authority, which authorises and supervises firms that arrange or promote credit agreements. Firms in the sector are also expected to follow the Consumer Credit Act 1974 and the Consumer Duty, which set standards for how products and communications are presented. Industry membership bodies, such as the Finance & Leasing Association, represent many lenders that appear on these platforms.
Questions about Loan comparison sites
Are loan comparison sites regulated in the UK?
Loan comparison sites that provide credit information or act as intermediaries must be authorised by the Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000. uk, which also lists any restrictions or enforcement action against it.
How do I know if a loan comparison site is trustworthy?
Check the FCA Register to confirm the firm holds the correct permissions for the activities it describes, such as credit broking or lead generation. Read the site's disclosure of how it is paid, including whether it receives commission from lenders, and check that it names the lenders it covers.
Does a loan comparison site show me every lender on the market?
A comparison site only shows the lenders it has a commercial arrangement with, so the results are a selection rather than the full market. Under FCA rules the site must state clearly which lenders it covers and how its results are ordered.
What should I compare before I apply for a loan?
Compare the representative APR, the total amount payable over the full term, the monthly repayment and any fees for late or missed payments. Check whether the rate is fixed or variable and whether there is an early repayment charge if you clear the loan sooner than planned.
Will using a comparison site affect my credit score?
Most comparison tools run a soft search, which leaves a record on your credit file that other lenders can see but does not affect your score. A hard search, which occurs when you formally apply to a lender, is recorded and can lower your score slightly, so check which type a tool performs before entering your details.
Do I have to pay to use a loan comparison site?
Consumers are not charged a fee to use the comparison service itself, as the site is paid by the lenders whose products it lists. If a site asks you to pay an upfront fee to arrange a loan, treat that as a warning sign and check the firm on the FCA Register before going further.
What are my rights if I want to cancel a loan after signing up?
Under the Consumer Credit Act 1974 and the Consumer Credit (EU Directive) Regulations 2010, you have a right to withdraw from a regulated credit agreement within 14 days of the agreement being made. You must repay the capital and any interest accrued in that period, and the lender must refund any fees it charged you.
What happens if I am declined after using a comparison site?
A decline from a lender is recorded as a hard search on your credit file if you formally applied, so ask which search type was carried out before proceeding. You can request a copy of your credit report from Experian, Equifax or TransUnion and check for any errors that may have contributed to the decision.
How do I make a complaint about a loan comparison site?
Raise your complaint in writing with the firm first and ask for a final response, which the firm must provide within eight weeks under the FCA's complaints rules. If you remain dissatisfied, you can refer the complaint to the Financial Ombudsman Service, which handles complaints about regulated financial firms free of charge.
Are my personal details protected when I use a comparison site?
The site must process your personal data in line with the UK General Data Protection Regulation and the Data Protection Act 2018, which the Information Commissioner's Office enforces. Read the privacy notice to see which lenders receive your details and whether you are being passed to third parties for marketing purposes.
What is the difference between a comparison site and a broker?
A comparison site presents a range of products and passes you to a lender, while a credit broker arranges credit on your behalf and may receive commission from the lender. Both must be authorised by the FCA, and you should confirm which role a firm plays before sharing personal financial information.
What should I look for in reviews of loan comparison sites?
Look for reviews that describe the specific process, such as how long the search took, whether the results matched the offers received, and how the firm handled any problems. Be cautious of reviews that appear in large batches within a short period, and weigh detailed accounts of outcomes more heavily than general praise or criticism.
Latest reviews in Loan comparison sites
cheaper than the other sites
Looked at a few places for a new kettle and this one was cheaper than the others I checked, by a fair bit. The downside is the delivery was…
quick and no fuss
Honestly this is one of the easiest bits of money stuff I have done. Applied for a loan on the site, got approved the same afternoon and…
Clear terms and quick payout
The first thing I noticed when reading through the agreement was how plainly the charges were set out, which I always look for before…
Sorted and quick
This is a solid choice if you need money fast and want the costs laid out. I was a first time borrower so was a bit anxious but the steps…
compared to the other sites
I checked a couple of rival sites before buying a wireless keyboard and mouse set, and this one came out a bit cheaper than the rest. It…
A little disappointed with the sheets
The first thing I noticed was that the bedding was a slightly different shade to the photo, more of a grey than the blue shown. The price…