Taking on debt is sometimes unavoidable. A washing machine could break, your car could need a whole set of new tyres, or you could end up paying for medical bills not covered by insurance.

However, you can avoid overpaying. In just seconds, WeTrust personal loans can help you find the best personal loan for you by comparing rates on the market.

Always watch out for hidden clauses and read the fine print to make sure you’re getting the deal you deserve.

1. Actual APR vs Representative APR

APR (annual percentage rate) is the total amount you will have to pay for your loan per year. It includes the interest you owe, standard repayments, admin fees, and any extra charges. Loans advertised at a low rate can easily add a few percent to their APR with high fees.

When you compare personal loans online, the APR advertised might not be the actual APR you receive. Although the company is legally required to offer the advertised APR to 51% of its successful applicants, the other 49% will most likely get a higher rate.

There are 2 primary factors that can drive up your APR:

1) Bad Credit History

If you’ve missed previous loan payments or never had a loan before, you could have a poor credit history. Contact  Experian, Equifax or CallCredit to check your history and make sure your information is correct.

2) Multiple Loan Applications

 Make sure you are confident that you’ll receive a loan if you apply for it. Banks share data on who’s made multiple requests for loans and use that information to drive your APR up.

2. Secured Loans have Aggressive ‘Missed Payment’ Actions

A secured loan means you’ve taken out a loan against an asset like a car or a house. Be 100% certain that you can afford your secured loan repayments, or the consequences could be dire.

On top of mounting missed payment fees, your asset could be taken away from you in as little as 3 to 6 months. Although secured loans have great interest rates, they also come with sizable risk.

3. Look for Early Payment Penalties

If you are planning on aggressively repaying your loan as soon as possible, be aware of early payment penalties. Even if you decide to consolidate your personal loan, you’ll still have to pay early payment fees.

There is no rulebook for which loan will be cheaper in the long run.  In fact, you can find some of the cheapest loans without early repayment fees. Early fees charge you between one and two months’ interest – a sizable addition to the total cost of your loan.

Start Comparing Your Options

Don’t overpay on your next loan. Stop waiting and start assessing the best options for you from thousands of customer-reviewed providers with WeTrust’s selected loan advisers.