Questions to ask before comparing a financial product

Name the decision in one sentence before opening a comparison. “I need to finance a car.” “I want a place to hold cash I may need this year.” “I need cover for a home.” “The business needs a facility against unpaid invoices.” If the sentence is vague, the comparison will be vague as well.

Then note the constraints that are already known: how much, for how long, whether the money must be accessible, and whether this is a personal or a business matter. Those constraints remove whole categories before any rate is read.

What is the total cost, not only the headline rate or premium. What fees apply at the start, during the term, and at the end. Is the price fixed or variable, and who can change it. What has to be true for the reader to be eligible. What happens if the product is repaid, cancelled or claimed on early.

For savings and banking, ask how quickly money can be reached and whether a bonus rate expires. For protection, ask what is excluded and what excess applies. For an investment account, ask about charges, the investments available, and the tax treatment in that country. None of these questions produces a universal winner. They stop a comparison that only looks at one line.

A published comparison does not know a credit history, a health disclosure, a tax residence or a business’s accounts. It cannot say that an application will be approved, or that one product is suitable for a named person. Those conclusions belong to the provider’s process and, where needed, to a regulated adviser.

Before moving on, check the date and the market. A UK comparison does not describe Finnish terms, and a consumer product does not describe a business facility. WiT Money’s role is to help readers arrive at the provider with those questions already in hand.