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Are you reading this because you were searching online for information about personal loans or an unsecured loan? If so, you may be wondering where a credit broker comes into the equation.
The truth is, there are many things to think about if you're considering looking for or applying for a personal loan. Multiple lenders offer all kinds of secured loans and unsecured loans. When you first begin looking around for information, you may feel confused by all the details that crop up.
So, if you're keen to know more about how a credit broker works, keep reading. We have lots of information that might help.
There are a few ways we could answer this question. However, the first thing to know is that a broker is not a lender.
Instead, credit brokers have multiple lending partners who offer personal loans or other financial products to help find the right loan for you and your specific financial circumstances.
You may be aware that personal loans come in many forms. Similarly, people may look for loans to help them in many ways.
A broker could search the market to find a personal loan that may closely fit what you're looking for. This may be an unsecured loan or a secured loan. The latter may be appropriate if you have something of value to secure a loan on - most commonly a property.
You can take advantage of their experience in offering such services, so you're able to consider various loan possibilities.
Yes. All financial services in the UK must be authorised and regulated by the Financial Conduct Authority. They should also be listed with the Information Commissioners Office, covering data protection and other vital areas of importance.
You'll typically find various pieces of information on a broker's website, such as a registered trading name if they use one. Loanza is an example of this. We also have a registered office, clearly displayed below.
If you come across a website claiming to offer broker services and you cannot find any information of this sort, steer well clear.
You can learn plenty about a broker before you think about using their services. For example, you may notice that Loanza has a firm reference number, displayed at the bottom of every page of our site.
You could also use the Financial Services Register to confirm whether a specific broker appears there. Even if a company does claim to have a registered office and is regulated by the Financial Conduct Authority, you could still check and confirm this before proceeding.
So... why might you think about using a credit broker and not a lender? Any loan you end up with comes from a lender anyway, so why not go direct?
It's a reasonable question, but there could be some significant advantages to going via a broker and not a lender, as we see below.
Few of us have extensive knowledge of secured or unsecured loans, or indeed any other form of loan. It's similar when you're thinking about buying a house. You may consider consulting a mortgage broker to help you to better understand the market, so you can find out which type of mortgage may suit you.
When you approach a broker, they act as a connection between you and multiple lenders and products. You may find you could apply for the loan amount you would like that would fit with your monthly budget, going via a lender you hadn't heard of.
With so many lenders out there, you may stand a far better chance of finding something suitable for your requirements if you use the extensive knowledge and experience held by a broker.
This moves on from the point we made above. You'll be able to identify what you'd like to use your chosen loan for, whether you want a fixed rate deal that provides one fixed monthly payment, and what level of credit you could comfortably afford. An affordability assessment could also help with this.
Brokers have connections with plenty of lenders, some more than others, so you could end up connecting with a lender you may never even have heard of. Some lenders specialise in offering unsecured personal loans or alternatively, secured ones. Still more focus on people who have excellent credit, while others look for clients with a far lower credit score.
This is one of the more appealing parts of using a broker like Loanza. When you use our online form, we could find and present you with multiple offers, conveniently laid out on one page. If you approach individual lenders, you'll find yourself scribbling lots of notes and re-entering your information on multiple websites to reach anywhere close to the same situation.
We'll run through a few of these topics now, as they all hold importance when you're looking for the best deal you could find for your criteria.
These may differ depending on various factors:
In every case, though, you'll have the information you need to know to be able to choose which credit offer you may want to apply for.
This is the interest rate you might pay annually on each specific loan. If you apply for the loan, the actual interest rate may vary slightly once the lender has checked your credit rating and obtained further details to help them make a decision. If you're precise with filling our form, the interest rate you get offered should be the same as your advertised "confirmed apr".
The representative APR is the annual percentage rate (interest rate) offered to at least 51% of customers of the lender. You could get higher or lower rates upon application.
For example, if you've got other debt, you may pay more interest than if your debt to income ratio was lower. Other debts and late repayment of debts could push up the rate you pay, too, as other lenders may consider you to be a greater risk.
A representative example is always added to each offer to help you compare your offers.
It's important to remember that no results are a guarantee of acceptance. Some lenders may conduct a soft search on your credit report when assessing your suitability for a specific loan. They may do this regardless of whether you'd have the debt secured on something of value or not, i.e., secured or unsecured loans.
Your credit score plays a huge role in whether you may be considered for a personal loan. However, Loanza has over 50 lenders in its network, so there could be some that try to help those with a lower credit score. And since there's no risk or fee involved in using our free online service, you could check and see what your options are for applying for an unsecured loan today.
There are no guarantees, remember. But Loanza could help you find out whether an unsecured loan (or other loan) could work with your credit rating, without affecting your credit score. The soft search process doesn't affect your credit score, so you could check the repayment terms on one or more loan offers on our site today.
What do we mean by this? We know there are both secured and unsecured personal loans available today in the financial marketplace. People look for loans for all kinds of reasons:
Here are a few things you should check out when you're considering looking for and using a broker. You may notice we're able to offer all these elements at Loanza.
We all love excellent customer service, don't we? If you're searching for a broker, check their track record and make sure you can rely on great service all the way through.
Loanza specialises in offering an online broker service for convenience when looking for unsecured loans and similar loans.
We have a straightforward form to complete, and a transparent loan offer design so you can easily compare your loan offers. Representative apr, representative example, repayment costs and other details are displayed to help you understand each offer.
This is important if you're thinking about making a loan application. However, it's also vital even when you're searching for information at an early stage. If you are having money problems it's especially important to have transparent loan options. You want to improve your financial situation, not make it worse...
We've all got different requirements when it comes to looking for a loan. These elements help us when we want to compare loans, so we stand a better chance of finding something suitable.
For instance, some people seeking loans could be in financial difficulties. They may have bad credit and therefore may need to look for bad credit loans.
Other people may want to search for lenders offering loans with a fixed monthly payment, so they'll always know what is going out of their bank account each month.
At Loanza, you could use our search facility to look for loans for all manner of reasons, including:
The results of your search with us may vary depending on the loan term you're looking for, the loan amount you'd like, and various other factors. You may receive details on one loan or multiple loans. You'll receive your options in a few minutes. That's the beauty of using our online service - and, of course, it's free.
Any queries about using a loan broker? Check below for answers.
A broker won't offer you a personal loan of their own, but they are able to suggest multiple lenders who do.
This is simply a service that offers brokering services for various loans in the financial marketplace today.
Some brokers may charge fees, but you'll be told about anything like this upfront. You must also agree to any fees and do so in writing.
At Loanza, we'll never ask you for any fees. That's because we provide our service free of charge to you. You're never required to agree to any loans you may find via our service either. You're in complete control, and you'll have the convenience of searching for a loan from the comfort of home.
We're authorised by the Financial Conduct Authority to provide broker services via our website. We offer a straightforward and sensible form to complete, which may help you find UK lenders that could offer a suitable loan.
Remember, we're upfront and clear about our free service to you. Check our company number, and remember we're authorised and regulated as a loan broker. Try our service today if you wish, and see if the personal loan you're looking for could be closer than you think.