There are lots of places that we can borrow form these days. Many different organisations seem to be willing to lend us money. However, it may be that you feel that you would rather use a high street bank for various reasons. It is worth looking into these reasons and think about whether it would be better to use them or not.
Nearby branch
Some people do like the idea that they will have a branch nearby that they will be able to go in to. They may like to be able to talk to someone from the bank face to face if they have any concerns or problems. If they do not like dealing online or over the telephone then this could be another reason for needing a branch.
There is always a risk though that a local branch might shut down. Therefore, relying on having one could become a problem. If it really is very important then make sure that there are several branches in the local area so that it is more likely that at least one of them will remain open.
Familiar name
It can be tempting to choose a particular high street bank because you know the name. It can feel reassuring that you know them and so you feel that you will be able to trust them. You might feel that if you get into any difficulties, they will be able to help you more and that they will be more understanding.
It is worth remembering though that just because you know the name, it does not mean that is for a good reason. It may be that you heard bad things about them and the name stuck in your head but the reason did not. Just because they have a name you know does not mean they will be good for everyone.
Good reputation
Reputation is important and you will think that the high street banks have a good reputation. However, you may find that this is not actually right. They are large companies and therefore they do not necessarily need the business. This means that they can afford to not be so good to their customers. People will assume they are good without checking first and so they get customers based on their name rather than their reputation. It is easy to think that a big name will want to be good to their customers to preserve their reputation but actually they could lose a few customers and not really notice whereas a small company would need to hang on to all their customers and so it would be much more important for them to give a good service and therefore get a good reputation.
Cost
When a company has a lot of branches it means that they have a lot of overheads. Not only do they have to pay those staff but they have to pay all of the costs associated with that building. They will staff regardless but they could rent cheaper buildings if they were not based on the high street which is expensive. Also, if they operate online or by telephone their buildings do not need to look so good as it is only staff visiting them and not customers.
Those additional costs are passed onto customers and so you could find that the loans from these companies are more expensive. Because they have a good reputation they can charge more as people will think that it is worth paying more to go with them and get money now.
It is not an easy decision working out who to choose as your lender. However, it is good to think about all of the factors that are important to you and decide which is most important. If cost is the biggest factor then you might find that you will be better off going with a less well-known company. However, if you want to go with a bank that has a local branch and you know the name of then you may be prepared to pay a bit more in order to get this. It is a personal decision based on how much trust you have in the high street lenders and whether you are prepared to pay a bit more in order to use one. Of course, you may find a good deal form a high street lender and it is worth comparing and looking as you never know what you may find but it is wise to remain flexible and think about what you want form a lender. Consider the factors that are important to you so that you get the best deal for you and your needs. If you need help then consider asking an independent financial advisor. This will cost you money but could help you to save more in the long run, especially if you are borrowing a large amount. They will be able to search for the best deals for you based on your priorities.
