Finding guarantor loans online
At CashLady, we want to help you understand all aspects of financial lending, not just cash loans. So we’re back with another part in our series on guarantor loans. Today, we will be looking at where you can find guarantor loans online.
Use an FCA-authorised loan broker
One of the options when trying to find the correct finance is to use a broker. A broker is an agent who acts on behalf of several different financial lenders. They use their expert knowledge of the marketplace to try and find you the best deal.
Advantages of using a broker
When you are looking for finance options, it can be quite exhausting to research and find the best deal that is out there, while also finding the one that is right for your needs.
To combat this, many people will use a broker to help them find the correct deal. Rather than going to the lender directly, you approach the broker and tell them what you need. The broker then finds the best deal for you, taking out a lot of the legwork.
This is obviously a huge timesaver. Using a broker means you can find the finance you need and have it signed and agreed on the same day. That way, you are free to get the finance you need quickly and move on with your life.
Disadvantages of using a broker
One disadvantage of using a broker is that they are not always impartial. Sometimes, lenders will offer better rates, or other financial incentives, to brokers. By offering these financial incentives, the lenders hope that the brokers will push more customers towards them, whether that is the right financial agreement or not.
This means that sometimes the broker does not always have your best interest at heart. If you do use a broker, make sure that you thoroughly check the financial agreement you are entering before you sign up. It is worth reading reviews of your financial lender online, just to be sure they are a responsible company.
Another disadvantage of using a broker is that many lenders will apply arrangement fees to any agreements. These are levied by the lender, so there is nothing the broker can do about them.
When considering a financial agreement from a broker, you need to be aware of the overall cost of borrowing. Factor in both the APR and any fees that may occur.
Researching a broker
You can find brokers everywhere, but a good place to start is on the internet. There are many different sites out there that will compare guarantor loans for you, and show you which is the best deal. You will still need to work out what is the best loan for you, but a lot of the legwork is already done.
Choosing a broker that is FCA registered
One thing that you will need to check is that your choice of broker is FCA-authorised. The FCA regulates the financial sector, so making sure you use an FCA-authorised broker means you know you are not dealing with a bad company. You can check the FCA’s register here.
Go direct to a guarantor lender
Another option is to go directly to the financial lenders themselves and see what the best deals are. This can be quite a time-consuming option, but it is often the best way to get the best financial agreement that works for you.
When researching your prospective lender, try to get as much information about them as you possibly can. Reviews are a great way to see how other people found the process. This will give you valuable insight into not only the application process but also the repayment process.
Advantages of going directly to a financial lender
By going directly to the lender, you can be sure that there are no middlemen and no surprise fees to pay. Most lenders are very upfront and transparent about any fees, so everything that you need to pay will be laid out in front of you.
Disadvantages of going directly to a financial lender
The disadvantages of going directly to a lender are that it is very time-consuming. It can take a long time to research and compare all the different lenders and, if you’re not fully aware of the marketplace, you may find that you missed out on a good deal because you didn’t look in the right place.
The guarantor loan market is massive, and it can take several hours of intensive research before you find the right lender for you, before you even start to look at loan packages.
If you’re looking for advice, you’re better off going to a broker than to a lender. A lender will have an excellent knowledge of their products, but not much outside that. Typically, lenders don’t have a great knowledge of the market as a whole. So, while their products may be good, they might not be the best for you.
The best approach
Often, the best approach to getting the best guarantor loan is a mixture between going directly to lenders and finding a broker. There are plenty of guarantor loan comparison websites, but it is also worth asking a broker too.
Once the broker has given you a suggestion, do a bit more research at home. Look up the company, but see if you can go directly to them and get the best deal. That way, you’ll omit the broker’s fees and still get the deal that you want.
Sometimes, you’ll need to haggle, though. Look on their site for a phone number and speak to a real person before you sign anything. Many sites will not offer their best deals upfront, so speaking to a real person is always the best way to make sure that you’re getting the best deal that a financial lender can possibly offer.
Ultimately, you need to be happy with the financial agreement you’ve been offered. Keep in mind that if it’s too good to be true, it probably is. But then you also need to remember to be realistic about your financial situation.
Got a question that hasn’t been answered? Ask us below, or drop us a line on Facebook or Twitter. If you need finance to help you out in a bad situation and you have poor credit, why not consider an online loan from Cash Lady?