2 min read
The four places fees hide
Charges cluster at four points. At set-up: arrangement and documentation fees. During the loan: monthly servicing or admin fees, drawdown and non-utilisation fees. On events: returned-payment and late-payment charges. At exit: early repayment charges. Not every loan has all of them — but you cannot compare offers until you know which apply.
How to flush them out
The single most useful question is: 'Please give me the total amount repayable, with every fee included, on this drawdown and term.' A lender that can produce a clean total-repayable figure has nothing to hide. One that cannot, or that keeps referring you back to the rate alone, is where you slow down. Ask for the tariff of charges in writing and read it.
Turning it into a real comparison
Once you have each lender's fully-loaded total, the comparison is simple: the lowest true cost on identical terms wins, adjusted for any terms that matter to you such as an early-repayment charge. A slightly higher rate with no fees can beat a lower rate stacked with charges. Never judge a loan on its rate alone.
Feed each fully-loaded offer into the true cost calculator, and read the true cost of borrowing guide. For a clean, itemised quote, apply to Credicorp.
Frequently asked questions
Are 'hidden' fees actually hidden, or just not highlighted?
Usually the latter — the fees are disclosed in the agreement, but the headline rate gets the spotlight and the charges sit in the small print. They are only 'hidden' if you do not ask. Requesting a total-repayable figure with all fees included brings every one of them into the open before you sign.
Which single question exposes the most?
Ask for the total amount repayable with every fee included, on your exact drawdown and term. That one number captures the rate, all set-up and servicing fees, and lets you compare offers like-for-like. If a lender will not or cannot give it to you clearly, treat that as the answer.
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