Let's take the APR, for example. On the surface, this seems like the most obvious and simplest way of determining whether or not lender A is likely to be cheaper than lender B and, therefore, that should make our decision easier, shouldn't it. Errm….well, no not really.

Lenders are becoming savvy that, as consumers, we're likely to shop around for the cheapest loans deals and they're also aware that one of the key indicators when we're doing our comparisons is the APR. But therein lies the problem. If you ever see their tempting advertising, you'll no doubt be familiar with that all important little word they include before the APR – “typical”. Well, typical means that they only have to ensure that two thirds of all applicants are offered the typical APR. But, what if you're in the other third? Quite often you might contact half a dozen lenders as you've been attracted by their APR to find that the loan quotes you are given are higher than the rate advertised.

So, depending on your credit rating, you may find you get the advertised APR or you may find that you can still have a loan but only at a considerably higher APR or you might even find that you are refused altogether.

OK, so you're accepted onto the typical APR. You've made all of your loan quotes comparisons and you've come up with a lender that's the cheapest. But are you sure they are the cheapest?

Well, have they told you about any redemption penalties that you may have to also pay in addition to the specified monthly repayments should you have the audacity to repay the loan early? What about payment protection insurance? They may insist that you have to take that out with them too in the event that you find yourself temporarily unable to meet your repayments. Have you factored that into your loan quotes?

Consumers need to be extremely wary of the underhanded, yet perfectly legal, tactics they'll employ to entice you into choosing them as your lender. However, instead of asking for loan quotes comparisons, you should start adopting the mindset of asking for the bottom line – i.e. the total amount you'll have to repay over a determined period and how much that breaks down month by month and, if there are any clauses or conditions attached. In asking these questions, you can start unravelling the ‘mystery' of loan quotes to ensure that you get yourself the best deal possible.