It’s difficult finding the right loan company if you need a payday loan to help you with an emergency situation like your car breaking down or unexpected dental or eye work. It can be even harder finding a reliable loan broker online. Payday loans were generally repaid in a month. However, things have changed over time and now you can take out a payday loan and repay it within 12 months. That is the reason, most of the lenders and credit brokers in the UK advertise “12 Month Payday Loans.” In this article, we will look at what a loan broker does, how they make their money, how to check if one is reliable, and how to get a payday loan through a broker.
What is a Loan Broker?
In general, a broker is someone who brings together someone who wants to buy something with someone who wants to sell something. Think about eBay, for example – they’re a broker. They let sellers of goods and services advertised on their platform and, if they find a buyer, they take a fee from the seller because they brought the buyer and seller together. It’s the same principle with travel agents and even Just Eat who take a commission every time you order a takeaway from one of their restaurants.
A loan broker works along the same lines but, unlike eBay, a travel agent, or Just Eat, loan brokers are highly regulated and they have to follow a code of practice to make sure that borrowers like you are protected.
How do Loan Brokers Make Money?
We make money every time we pair together with the right borrower with the right lender. If a borrower then takes out a loan that we recommend, we get a “thank you” payment from the lender for introducing you to them. It’s that simple.
Does a Reliable Loan Broker Charge Upfront Fees?
You never pay a penny for our service. You should never work with a broker who will charge you a fee for finding the right loan for you – after all, you wouldn’t pay JustEat a separate fee for finding that perfect pizza. It’s our job to find you a loan that’s attractive enough that you want to take out. Why should you pay us any money if we can’t find you a loan that you’re happy to take out?
How Can I Check Whether an Online Loan Broker is Reliable?
All reputable loan brokers must be licenced by the Financial Conduct Authority (FCA). The FCA makes sure that all online lenders and loan brokers behave properly and that they put the interests of their borrowers first. If an online loan broker is not registered and licenced by the FCA and you’re thinking about working with them, please don’t. You’re at high risk of being taken advantage of by a loan shark. You may find a lot of options for Payday Loans Online from lenders who are not authorised by the financial regulator. Dealing with such lenders may result in a scam and you must not deal with such lenders or credit brokers.
Can I Get a Payday Loan with a Bad Credit?
Yes. There are over 100 different lenders in the UK happy to offer payday loans to borrowers whose credit histories are less than perfect. You can normally borrow between £100 and £1,000. With a payday loan, you make one repayment within 30 days of taking the loan out – you pay back the amount you borrowed and the interest all in one go. However, the lenders have evolved with time and now you can borrow money over the course of up to a year. The longer you borrow for, the lower the amount you repay every month (although the overall interest on your loan will be greater).
You need to be 18 years or older, have a bank account with a debit card, and have a mobile phone number and email address.
What is Responsible Lending?
Loan Broker is a responsible broker and all of the lenders we have on our panel are responsible lenders. We take every precaution to make sure we don’t say “yes” to your application if we don’t think you can meet the repayments out of the money you have spare in your bank account at the end of the month. We believe a loan should be there to help borrowers out when there’s a financial emergency. Our lenders and we are not here to cause you stress and anxiety by giving you a loan you can’t afford to pay back.
How Does Loan Broker Help their Clients?
As we mentioned earlier, there are over 100 lenders who work with borrowers whose credit histories are less than perfect. These lenders are more interested in who you are now and not any problems you might have had a few years ago. Every lender has a particular type of borrower they like to work with. When we start working with a lender, what they want us to do is to only bring them the type of borrowers they are happy to lend to. This saves them time and money. They give us a long list of requirements about their “ideal” borrower.
Whether you are searching for Payday Loans in London, or in any other part of the United Kingdom – we can help you find the right lender according to your needs and requirements. When you fill in the form on our website, we take all the details you’ve given us and then we match it to the lenders you’ve got the very best chance of getting a loan out with. Sometimes, it might be two or three lenders. Other times, it might be ten or more. We then get the first offers back from each lender and that means that we have a really strong idea about the companies who will make you a final offer. We then send those lenders a copy of your credit report – that’s part of being a responsible broker. Once they’ve had a look through your file, each lender will then either give you a final offer or withdraw their offer. All of this takes place in just a few seconds thanks to our clever computer system. At the end of the process, we then present you with the best deal at the cheapest rates we’ve found.
It’s then up to you whether you want to take out the loan. We never charge you for our service and you’ll never pay more going through us than you will by going direct to the lender yourself.
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