Loan brokers are becoming very popular
in the UK because of several reasons. First of all a loan broker is usually
associated with many specialist lenders. This is the reason that a borrower
will be able to find a wide range of loan products in one place. Then again
some of the specialist lenders associated with loan broker are
also ready to provide tailor made loans to their customers.
Not only this, the procedure for
application and approval of loans with loan brokers, is not like that with
traditional banks and lenders. Traditional banks and lenders have a lengthy and
tedious procedure for application and approval of loans which takes days or
even weeks to complete. Then again you are required to personally visit the
office of the bank or lender in order to be interviewed by their
representative.
Why loan brokers
On the other hand the specialist
lenders associated with loan brokers have no such requirements. They are only
concerned with your current ability to repay the loan and the entire process of
application and approval is online. All you have to do is fill out an online
application form on the website of one of the loan brokers.
The broker will in turn pass on this
application to a few lenders associated with them. The lenders will analyse
your financial and personal information and will approve the loan within half
an hour. The loan money will also be transferred to your account within the
same day or at the most the next day. The best part is that although the loan
brokers have the best interest of the borrower in mind they don’t charge a fee
from the borrower. Instead their charges are paid by the specialist lenders who
are providing the loan.
Applying for a loan through loan
brokers also means that you can get special loans like very
bad credit loans with no guarantor. This is because the specialist
lenders associated with loan brokers understand that often bad credit is not due
to the fault of the person. There may be some unforeseen and unavoidable
circumstances due to which the person may have fallen into bad credit.
This is the reason that the specialist
lenders only analyse your current ability to repay the loan without making your
credit score the main criterion for loan approval.
Can you get loans with no credit check?
When we are discussing bad credit you
may have often come across advertisements which say that they provide no credit
check loans with no guarantor. However, you need to beware of such lenders
because they may be loan sharks or other such unscrupulous elements. On the
other hand even legitimate lenders put out such advertisements.
These legitimate lenders however, do
not mean that they do not conduct a credit check if you apply for a loan.
However, they go soft on the credit check and provide you a loan even if you
have bad or even very bad credit as long as you are in the present able to
repay the loan with your monthly income and expenses.
