When applying for short-term lending, like a quick loan, or payday loan, you can either find a lender and apply direct, or apply for quick loans through a broker.
What is a loan broker?
A quick loan broker is not a lender themselves. A loan broker (otherwise known as a credit broker) should be authorised and regulated by the Financial Conduct Authority (FCA). They will have a panel of FCA approved lenders. When you complete a loan application it will go to these lenders and one of them may approve you, or you may be able to compare a number of loan companies, who are willing to approve you for a loan.
The FCA is the UK regulator for financial services firms and markets in the UK. https://www.fca.org.uk/
You can check the Financial Services Register at the FCA to make sure your quick loan lender, or loan broker, is regulated and registered.
CashLady is one such, FCA regulated, reputable, loan broker in the UK.
Why should you find quick loans through a broker?
Authorised and regulated
There are many hundreds of quick loan and payday loan providers in the UK. Most of them are authorised and regulated by the FCA and are very reputable. Some are not, and there are scams out there. It can be very difficult to tell just from a website who might be a safe lender and who is not. Using a broker means that you can contact, and compare, a number of loan providers, who you know are just as approved as the broker themselves.
One application form
Choosing to apply for your quick loans through a broker will mean one application process submits your loan application to a number of companies. Rather than going to each loan provider one by one to submit an application. This saves time and means you have offers to compare. If you are rejected by one loan company you may be considered by another.
Using a broker also means that your loan application will not be submitted to lenders the broker knows do not match your requirements, credit status, or affordability. If you are applying for a loan directly yourself it may be harder for you to judge if a lender is suitable for your situation.
Reaching new lenders
If you are searching the internet for a quick loan provider you will find many of the big, well-known names at the top of Google. This is because they have invested time and money in getting to the top of the search engines. Newer lenders might not feature so highly in Google yet but still have a very credible, and often competitive, loan offering.
Using a broker means that you can consider new lenders, with the reassurance they are trusted and credible. A broker like CashLady will often work with large, and small, loan lenders.
Better for your credit rating
Lots of loan applications are bad for your credit rating. Especially if you are rejected a number of times, and even if you are successful with one provider. Using a quick loan broker means a single credit check with your initial application, which is far better for your credit rating.
How to choose quick loans through a broker
You will likely browse the internet to find a quick loan broker such as CashLady. You should choose only brokers who are authorised by the FCA. You will find searching, and browsing brokers is faster than finding a lender as there are fewer brokers than there are lenders.
When you have found a broker, have a good look at their website. Do they offer you impartial financial advice as well as a loan service? Then, look for reviews on their website and across the net. How well are they rated?
A loan broker should never charge you a fee.
How will the application process be different?
The loan application process with a broker will be slightly different but not by much. You will complete one application form, which asks all the right questions potential lenders will need. Your application form will then go to suitable lenders on the broker’s panel.
When your loan application is initially accepted, you will then communicate directly with the lender of choice to finalise your loan.
What will happen when I apply for my loan?
When you decide to apply for financial support in the form of a loan;
- You will complete a loan application form on the credit broker’s website
- If successful, you will complete the loan process directly with a quick loan lender
- Your lender will need proof of your employment and income
- They will conduct a credit check and affordability assessment
- The lender will then offer you a quick loan if you are approved
- You will need to agree to the terms of the loan
- Once agreed and finalised, the lender will send your funds directly to your account