These days we all have a bit of a trust issue when it comes to banks. As bank managers and investors take millions of pounds in bonuses while the economy falls to its knees, the public perception of banks is less than flattering. And unfortunately, the recent news that banks have been conning current account customers into taking out expensive bad credit loans will not do anything to help the banks’ public image.
It has recently been revealed that when customers take out current accounts with a specific bank, they’re often assured that they have exclusive access to bargain deals on personal loans. As a result, many customers snap up the opportunity to kill two birds with one stone, and get their hands on a “bargain” personal loan at the same time as opening a current account.
However, the majority of these so-called bargain loans actually have much higher interest rates than the other personal loans that are available on the market. And, as the contracts are often full of jargon and small print, many people fail to spot that they’ve been duped until it’s too late.
The main reason for these personal loans being taken out, as stated above, is convenience. For many people, sorting out finances is a stressful and unpleasant experience, so if their bank offers an opportunity to set up a loan quickly and effectively, they’ll make the most of it.
What’s more, many people assume that taking out a loan with their current bank will mean they get some kind of special deal available exclusively to existing customers, and as a result they don’t bother to check the interest and other specifications of the loan.
Recently, personal loans have been the major focus of lots of banks and lenders, and the interest rate for personal loans of between £7,500 and £15,000, or even up to £25,000, is at its lowest point in almost seven years. This means that even a little bit of research and shopping around can leave you quids in as opposed to taking out a personal loan with your current account. [Read more…]