Financial products, from loans to credit cards or insurance, can be tricky. While they may often seem like a good deal, there are often hidden things to look out for. Also, it can be difficult to know whether a certain product is right for you, or whether there are better deals out there to make the most of your money. So, here’s a guide to choosing the right financial products to suit your needs.
Use comparison sites
Comparison sites can be an excellent way to ensure you’re getting the right product. You simply use a site such as https://rabbitcare.com/, enter your details, and get a number of results with a breakdown of the details of each policy. You can then make a decision based on these results. Rather than apply for products such as insurance or loans one at a time, you can make multiple applications.
Consider whether you’re using the right products
Another mistake that’s commonly used is using the wrong products to meet a certain financial need. For example, using credit cards for emergencies is OK for a one-off, but you shouldn’t be doing so on an ongoing basis. You may also find that for larger purchases, getting a personal loan can be a better option. It’s worth looking at the APR and repayments and seeing what’ll cost you less in the long term.
Some other measures you can take to deal with financial emergencies include:
- Building a small savings pot to cover expenses
- Better planning your finances so there are fewer surprises
- Looking for 0% introductory credit cards and paying them off before the offer ends
It’s always worth doing your research, or even getting some financial advice if you are unsure about anything before you sign up for a new financial product.
Take your time to choose a product
Another common mistake is deciding you need a certain product, and then immediately going and signing up for it, without taking your time to make sure it’s right for you. For example, when it comes to taking out travel insurance, most people book it the day before they’re going on holiday. However, you should ideally be taking it out as soon as you book your trip, in case of cancellations or other issues. Also, you shouldn’t rush into signing up for any product. Do your research, read the small print, and look for online reviews to see the experiences of other travelers before you enter your card details.
Financial products aren’t something you should sign-up for lightly. You need to ensure you’ve made the right choice, as the wrong one can potentially cost you hundreds. Start off by doing your research and making sure you’re looking for the right product, then consider moving on to comparison sites, so you can look at the options that are out there. Financial products often have a minimum term commitment attached, for example, car insurance usually lasts a year, so it’s important to keep this in mind when you sign up.