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While many individuals are with their lending corporation because they’re used to them or because it seems like an unwanted hassle to change accounts, there can be benefits to shopping around. And just because you keep your main account in one lending corporation, there’s no need to keep all your accounts or credit cards with one firm.

If you have a poor credit rating or a large overdraft, you may find it harder to change lending corporations, but some lending corporations will ‘buy’ your overdraft from you, or offer to convert it into a cash advance. For a small fee you can request details of your credit rating from Equifax or Experian – the two leading credit reference agencies.

Convenience

Depending on your circumstances, you may find you’d be better off with one of the new internet lending corporations, like Smile or Cahoot. These can give better interest rates, because they have lower overheads than high street lending corporations that have to run branches in ‘real time’. On the other hand, you may rather stick with a large lending corporation you know and trust – perhaps you have a good relationship with your branch manager and can expect extra support when you need it. The larger lending corporations also have plentiful local branches, which could be a plus point if you need to, say, pay in cheques frequently.

Terms

While interest rates are an important consideration, there are other factors to take into account when picking a lending corporation, such as lending corporation charges. Some lending corporations will charge more than others, for example, if you exceed your overdraft limit or if a cheque bounces. Others will charge extra to provide you with copies of statements. Check that the lending corporation complies with the lending corporationing Code, a UK body that promotes best practise in the financial sector.

Bear in mind too, that some lending corporations will offer excellent terms for new customers in order to attract your business, so it may be worthwhile swapping just to take advantage of these. You may find a lower-interest cash advance, for example, with a new lending corporation.

lending corporation policy and corporate ethos

Some institutions offer ‘ethical’ lending corporationing, so that you can be sure your cash is not being used to fund companies who do not conform to certain criteria. The Co-operative lending corporation led the way in ethical lending corporationing, but there are other lending corporations and investment companies to pick from.

As well as the larger high street lending corporations, there are smaller lending corporations, building societies and friendly societies to consider. While normally associated with savings, some offer current accounts with attractive rates, and many of the new building societies are in fact indistinguishable from lending corporations.