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If you’re in the market for a quick cash loan, then one option is to apply for cash loans through a broker. In some cases, this can save you money when it comes to interest costs. However, it’s important to make sure you’re fully aware of any fees that may be payable to the broker directly, or indirectly, as it’s not always clear how much you’re actually paying for the services of the broker.
What does applying for cash loans through a broker do?
For people with cash loans, getting unsecured cash loans through a broker may be the only option open to them. Because of the current complex and highly competitive cash loans market, brokers can take a lot of the confusion out of acquiring quick cash loans, and, since many of them work online, it can make the whole process much quicker and more convenient.
In such as large market, finding the right lender, and the right product, at the right price for your needs, can be complex, especially if you’ve experienced cash loans bad credit in the past, so hiring the services of a broker can help. Just be clear from the outset exactly how the broker gets paid. There are usually two ways this happens.
- Commission from a cash loans lender
- A fee paid by the borrower
If you’re paying fees directly to the broker, then this could offset any savings you make.
Source a reputable credit broker
Another thing to look out for is ambiguous language on a credit broker website. This can often give the impression that the company is, in fact, a direct lender, rather than a broking firm. This is because many brokers are employed by quick cash loans providers to prioritise the sale of their cash loans products over that of their rivals. Which is why it’s so important to check the small print so you fully understand who you’re lending from and what you’re signing up for when applying for cash loans through a broker. It’s also recommended that you check reviews on comparison sites to see what other people say about the broker and their service. Always make sure the credit broker you choose is registered with the FCA (Financial Conduct Authority) for cash loans.
Finding a cash loans lender that’s right for you
Of course, you don’t need to use a broker if you’re willing to put in a little time and effort to find the right quick cash loans provider and product for your needs. You can visit the websites of individual lenders or comparison sites to see what each offers and to compare pros and cons. When applying for cash loans online, you’ll discover that most websites have a tool that lets you see how much it will cost to borrow a certain amount of cash currency over a specific borrowing period. This can be incredibly useful in finding the right product for your individual needs.
What to look out for
In almost every case, if you look at the interest rate or APR, you’ll notice that it is often higher with short term cash loans compared to other loan products. This is because these are generally much quicker and convenient when applying and because it’s over a short period of time, the lender has to charge a higher rate of interest in order to make it financially viable as a business model. So always weigh up your options carefully before taking out any cash loans online.
Make sure you have the funds available to make any payments obligations on time and you don’t end up without any coins in your pocket before your next payday, as this could mean you end up having to take out a cash loan every month in order to get through to your next pay check.
Finally, be aware that not every broker can be trusted. There have been many cases where brokers have taken unauthorised payments from customers’ bank account when the borrowers didn’t even know that they’d signed up for a cash loan. Never give out your bank details until you know what you’re getting into and always research any potential brokers thoroughly. If you have given payments details to a broker, you may discover that you inadvertently signed up for a CPA (Continuous Payment Authority), allowing a company to take money from your bank account.
Remember too, under the FCA’s distance marketing rule, you have a 14 day cooling off period which gives you the right to cancel at any time during those two weeks. You don’t need to give a reason and the broker has to refund any fees you have paid within 30 days. He or she can only keep part of the fee if a service has been provided during that time.
If you do have a problem with a broker, you can complain to the Financial Ombudsman Consumer Service.