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Why Applying Through a Broker is a Better Idea Than a Direct Lender

By , June 23rd, 2017 | No Comments


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When it comes to applying for a loan, there are quite some options to choose from. There are business loans, personal loans, secured and unsecured loans, and so on. They are either provided by banks and credit unions, private firms or direct lenders. But recently a new provider of personal loans has gained popularity in the UK and they are known as credit brokers. These are companies working to provide a middle ground for borrowers and lenders to come together and be of benefit to one another.   

With the success of these brokers in recent years, it is now better to apply for a loan through an online broker than to go for direct lenders because of many reasons. First off, a broker would be able to give you the best terms and rates when it comes to interest and total repayable amount. This is especially of advantage to those who are applying for a loan for the first time. Since they have no idea which plan would be best suited to their current financial situation and their pay scale, it is better to let the broker decide what is good for you.  

Credit brokers specialise in their field, and they are aware of many types of loan types designed for different situations. They can give you first-hand information on what type of a loan would be better suited to your financial standing. They are also well aware of the loans designed for people with bad or poor credit history. Some brokers even offer a doorstep service in which an agent from their company arrives at the doorstep of the applicant to discuss all available and feasible options to come out of a difficult financial situation.   

A direct lender may offer you a lower interest rate but other than that there is no attraction in getting a loan from such a private lender. They would most definitely ask for a guarantor, or they would perform credit checks to find out if you have defaulted a payment in the past. If they find out anything amiss, they would out-and-out reject your loan application. In most cases, it is difficult to arrange for a guarantor who is willing to pay off the dues in case the borrower fails to make repayments on time. All these disadvantages make credit brokers a better and more suitable option for any personal loan.

Although credit brokers also work with private lenders they have a very streamlined approach to making the best lender available to their customers depending on individual client’s financial situation and other requirements. That is why it is always better to find a broker website and apply for an unsecured bad credit loan online than to approach banks and credit unions that often turn you down for no reason at all.

Some people might think that broker controlled loans go into default more often than direct lending. But looking at the recent trends especially in the UK and testimonials given by actual customers tell a different story. These people are very satisfied with the workings of credit brokers like BadCreditSite.co.uk as they found the services very useful, reliable, and quick. Using such a bad credit loan, one may get the funds transferred to their bank account almost instantly. This is yet another reason why these brokers are considered far superior to direct lenders.

There is absolutely no paperwork involved when you apply for a loan online through a broker. This is because the lender is being given the guarantee of the broker itself and in some cases, a guarantor is provided. So, the whole procedure is completely safe and secure. Short-term loans or payday loans are made even more secure by offering a risk-free transaction. The borrower may decide to return the principal amount within 72 hours of application approval without paying any extra amount in the form of interest.

It is usually difficult to get in touch with individual lenders and get quotes one by one. Why not work with a credit broker that has a list of private lenders ready for you offering you the best loan plan suitable to your needs? Try one of the instant loans today, and you will see for yourself just how easy and safe the process is.

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