The Dirty Secret Behind “Loan Comparison” Sites

Some platforms that call themselves 'comparison websites' are actually pay-to-play advertising channels.

While these platforms claim to help you compare loans objectively, regulators from the U.S. to Australia are uncovering a different reality: many of these so-called tools are paid to show you what they want you to see.

At FindTheLoan.com, we call ourselves Singapore’s first loan marketplace for a reason: we don’t just show you a few names and teaser rates. We are a tool that allows you to send your application to multiple lenders and let them respond with real offers. That way, you don’t waste time and money chasing biased suggestions.

Comparison websites often show static info or "starting from" rates — but those rates aren't tailored to you because these platforms don't collect your full profile or pass your application to lenders. What you see are just advertisements — and even if the interest rate is accurate, what about the loan amount or tenure?

In fact, regulators in multiple countries have already taken action:

1. U.S. Federal Trade Commission (FTC) vs. LendEDU

"LendEDU told consumers that its financial product rankings were based on objective and unbiased information... but in fact LendEDU sold its rankings to the highest bidder."

— FTC consumer alert

2. Consumer Financial Protection Bureau (CFPB) on Steering Practices

"Operators of digital comparison-shopping tools can violate the prohibition on abusive acts or practices if they distort the shopping experience by steering consumers to certain products or services based on remuneration to the operator."

— CFPB Circular 2024-01

3. Australian Securities and Investments Commission (ASIC) vs. Choosi

ASIC sued Choosi for misrepresenting itself as a broad comparison tool while mostly promoting just one insurer:

"Comparison websites must provide a meaningful comparison service — not simply operate as a sales channel or distribution platform for companies."

— ASIC media release, June 2025

At FindTheLoan.com, we've faced this pressure firsthand. Some lenders offered to invest — but only if we agreed to steer all borrower traffic toward them. We turned them down, choosing instead to spend another year before we managed to raise money from angel investors instead.  We believe a real marketplace isn't just about the tech — it's about values. Staying truly pro-borrower meant rejecting investor terms that would have compromised neutrality.

4. Even governments are warning about biased comparison websites

It’s not just consumers who are starting to question these platforms — regulators are speaking up too.

The Australian Government’s official site MoneySmart advises that many comparison sites are actually commercial businesses that get paid to feature or prioritise lenders, meaning users might not see the full picture.

That’s exactly what we’re trying to solve at FindTheLoan.com. We don’t sell ad slots or take money to push certain offers — we show real loan options based on what you qualify for, not what lenders pay to advertise.

Conclusion: You can’t compare offers that were never made.

Many so-called comparison sites only show teaser rates that don’t apply to you — Think about it: if one lender or bank were cheaper than the others for all borrower profiles, wouldn't the rest have closed shop? What looks like choice is often just advertising dressed as comparison. And even if the interest rate is accurate, what about the loan amount or tenure?

Also, some banks intentionally advertise higher rates as part of a controlled risk appetite strategy. These institutions aren't trying to compete on price—they're protecting their loan books by attracting a more stable, less price-sensitive segment of borrowers. By displaying higher advertised rates, they deter risky applicants who are purely rate-shopping and instead filter in customers who value speed, brand trust, or bundled services. This selective positioning helps the bank maintain portfolio quality and reduce loan defaults, even if it means appearing less competitive.

That is why you see them fluctuating from time to time. Did you think a bank suddenly got more competitive the next month? If your risk profile is good, even if Bank A advertised a one percent loan, you might actually still find a 0.9% with Bank B when you applied—which simply chose to advertise at a 2-3% rate for that month to control the applicants but still can be just as competitive to the right one.

Many comparison sites fall into a circular pattern, where the lenders that pay for top visibility get more traffic and applications—or if that month, they have an increased appetite and thus advertise a lower rate.

Know someone who used a "comparison" website? Ask him or her to try other lenders! There could be cheaper rates lying on the table!

At FindTheLoan.com, your application goes to multiple lenders, and they reply with genuine offers you can act on. That’s transparency you can use — not disguised advertising.

Keen to learn of more lies in the industry? How about loan types that don't exist? Check them out here. Some of them would make you laugh!

Or lies by the other major players in the loan industry? Check it out here.

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