Comparison sites: how to use one when shopping for credit cards, loans, gas or electricity

Comparing prices online can save you a fortune, but you need to make sure you really are getting the best deal. Here's how.

How comparison sites work

Comparison sites have changed the way that many of us find financial products, whether we are looking to borrow with a personal loan or a credit card, open a savings account or even take out some form of insurance.

However, there are many different comparison sites out there (including our own!), and they may all work in slightly different ways.

Last year, the Government's Competition and Markets Authority suggested that price comparison sites need to better explain just how they make their money and how the relationships they have with suppliers may influence the way that the results of a search are presented.

It’s a good idea that you do a little background research on a price comparison site before deciding to use it.

It’s also worth checking whether the site is recommended by relevant trade bodies or regulators.

The energy regulator Ofgem, for example, has given a series of quality price comparison sites special Ofgem-accreditation, so that you know that they can be trusted (find the full list here).

So how do you get the most out of comparison sites?

The ‘best’ deal isn’t always at the top

Assuming that the best deal for you is the one that finishes at the top of the search can be a costly mistake.

First, make sure that the results are actually ranked by price, which isn't always the default setting.

Price isn't everything, however: take travel insurance for example. You put in your personal details and where you’re planning to go and the comparison site will then deliver a giant list of quotations for a travel insurance policy, with the cheapest deal at the top.

But there’s more to finding the best deal than it simply being the cheapest - that policy may exclude certain elements of cover that you really need, or not offer enough cover for the items you’ll be taking with you.

It’s the same if you’re looking for a credit card. You might want a new 0% interest balance transfer card, but the comparison site orders the results with the longest 0% deals at the top.

However, if you only need 12 months, for example, pay off the balance you will likely be better off with one of the deals further down the list that comes with a smaller transfer fee than the card with the very longest 0% periods of three years plus.

Read more about balance transfer cards and why longest isn't best here

Are you seeing all the results?

It’s a good idea to check on the results page whether you are seeing ALL of the results, or just a select few that they make money from.

There may be a tickbox or a button that you can click which means that you’ll then get all of the results.

Not every comparison site will necessarily have all the products on the market, which is why you should look at multiple sites (more on that below)

Check for errors

It’s a good idea to double check that the details of any policy or financial product that a price comparison site presents actually meets the terms that you searched for.

A recent investigation by Which? looked at car insurance results on price comparison sites.

It ran searches on four big comparison sites and cross-checked the policy descriptions against what it had actually asked for, and four that for six out of every 10 policies there was an error.

This is a crucial point – don’t just go along with the results of any search on a comparison site.

Before you sign up to any deal, whether it’s for insurance, an energy tariff or a loan, you need to make sure you understand exactly what you are getting for your money.

Can I trust ‘exclusive’ deals?

Sometimes suppliers will offer deals that are only available through comparison sites.

This may be limited to a single comparison site, or across a range of them, but the key thing here is that this isn’t a deal that you can get direct from the financial firm itself.

These deals may work out cheapest, but that isn’t a guarantee. It’s worth being on your toes to ensure that ‘exclusives’ aren’t being presented ahead of deals that may work out cheaper overall.

Use multiple sites

Along similar lines, not all comparison sites work with the same financial firms. This means that the results you get on one may be rather different to the results on another comparison site.

Using more than one site is therefore a smart move as there’s then less chance of you missing out on what would work out as the best deal for you, simply because the one comparison site you’ve elected to use doesn’t work with a specific provider.

Indeed, using more than one site is something that the Competition and Markets Authority recommended after conducting an investigation into the price comparison market last year.

To make comparison easier, open two comparison sites on different webpages and drag them to different sides of your computer screen, like this:

You may need to go direct

It’s also really important to remember that not all financial firms offer their products through comparison sites, sticking to direct sales instead.

So for example, if you want a completely rounded idea of what you might pay for an insurance policy, then you will need to get a quote from the likes of Direct Line and Aviva from the firms themselves.

You don’t have to do that of course – you could just stick the options that come up from your comparison site of choice – but leaving out some firms does risk you missing out on the best value deal.

Talk to your existing supplier

Price comparison sites can show the deals out there, but it's still possible to get a better deal, tailored just for you.

You can do this by picking up the phone and haggling.

It helps to approach your supplier with a lower price that you've found for an equivalent deal and asking them to match it.

This could save you hundreds of pounds and the hassle of actually switching.

Get an impartial look at the best deals available now with loveMONEY's Best Buy roundups