5.2 Things to ask a lender offering a low APR

The FSA advises that if you find a product with a low APR you should ask the lender the following questions:

Is the interest rate included in the APR fixed or variable?

Answer: Variable – Your repayments could go up or down
Answer: Fixed – Your repayments will stay the same

Are there any other charges that aren’t included in the APR?

There may be additional charges made for services, such as optional PPI. If there are, make sure you understand:

- what these charges are;
- whether you need the service being offered;
- how much it will cost you; and
- when you would have to pay

What are the conditions of the credit and do they meet your needs and requirements?

You may want to know if you have a choice about how and where you can make repayments or if you can repay the debt early without being charged penalties.

Back to Guide to Credit Cards Contents

Money

Insurance

Utilities
- Gas & Electric
- Broadband

Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.

©2012 compareandsave.com is a trading name of Freedom Marketing Ltd.
Freedom Marketing Ltd is authorised and regulated by the Financial Services Authority, firm reference number 493117. This can be checked at www.fsa.gov.uk/register. Registered in England & Wales under registration number 05349340. The company's registered office is Freedom Marketing Limited, 5 Beacon End Courtyard, London Road, Stanway, Essex, United Kingdom CO3 0NU.

We are also authorised with the Office of Fair Trading, CCL number 624508/1. In compliance with the Consumer Credit (Advertisements) Regulations 2010, Freedom Marketing is a Credit Intermediary for all consumer credit products listed on our sites, with the exception of products from the following providers: Tesco Bank, Royal Bank of Scotland Group and Nationwide Building Society.